These troubled economic times have sure thrown a wrench in the way folks treat credit nowadays. In the not so distant past it was pretty easy for folks to get credit approval. It was not unknown for a college student to get a few thousand dollars worth of credit cards without any credit scores. Mortgages could be had with small down payments or no down payments. Today, no credit check payday loans are about the easiest loans to get.
As a general rule, going into debt should be avoided. However, when you absolutely have to take care of a financial emergency, getting cash advance payday installment loans murfreesboro tn is much better than having your water turned off or your child not allowed into school or you not being able to make it to work.
Often, people were just granted too much credit. Had the economy stayed in good shape, they still would not have been able to meet their obligations. Irresponsible lenders just doled out too much cash. At one point, cavalier lending applied to car loans and, worse yet, home loans. Lenders approved unqualified home buyers far too often and this led to the mortgage debacle and the foreclosure pandemic.
Let’s take a look at a quick example. Using a conservative guess on numbers, consider that a $1,000 loan carries $170 for a processing fee and then $200 of interest. Therefore, a $1,000 loan actually costs you $1,370.
Though the name fax-free or fax-less loan may seem a bit odd it is really in simple reference to the ease at which you can acquire money with these types of loans. Unlike formal loan processes or credit card applications which run a credit and income check, these loans are easy to get and do not require supporting documents to be faxed to the lender – get it?
Debt consolidation loans are helpful in some ways, but they come with a cautionary note. First, consolidation loans are secured loans. This means that something of grave value, such as a house has to be secured in order to get these loans. If you are paying the mortgage on your house and get a debt consolidation loan against the value of the house, then your will have two loans against your house. And if you default on this loan, you will lose your house.
A person can improve his or her credit rating by repaying the due amount on time. As the lenders are not interested in doing a credit check the individuals having a bad credit history are also eligible to apply for this loan. The only requirement is that they should have a stable income and a valid checking or bank account in which the amount can be deposited.
While a fast cash loan can help you should a real emergency arise, you should use such loans sparingly and only if you really need one. They can be a real help to those who need money fast every occasionally but, can also become a burden when the interest piles up from taking out too many of these loans.