Establishing Your Credit

Establish your creditAs a teenager and young adult, we learn that credit is very important in the United States. You need credit for everything! The reality is that while everyone requires you to have some sort of credit, getting started is quite difficult! Some people may recommend that you apply for a store credit card. Some store credit cards are easy to get as the stores want you to spend money there.

The problem with store credit cards is that if you’re using it to establish your credit, you’re creating a lot of debt for yourself in a store that you may not purchase that much in. The idea behind credit is to prove that you’re able to make payments. Getting a store credit card and racking up a whopping $50 balance is not going to show anything.

There is a couple other ways to establish credit if you have none. One would be that clunker that you paid $500 for out in the driveway. Some banks or credit union will allow you to do a SMALL secured loan, using that car as collateral. If your car bluebooks at $750, take out $500. A second way is to save up some money and purchase a CD (Certificate of deposit). Depending on the bank, there are different minimums. The easiest way is to find a bank or credit union that has a $500 CD. Once you’ve taken out this $500 CD, request to take a loan out against it. You’ll get approved for this loan guaranteed as you’re not really borrowing from the bank, you’re borrowing against your own money! The bank has no risk at all since they’re holding the CD. In this case, your payments would be around $45.

Once you’ve gotten this loan, you can do whatever you want with the money. You can spend it, or you can save it. One smart idea is to take this money, stick it into a account, and set up a automatic payment with the loan that you just took out. You may have to contribute a few bucks of your own as the bank does charge a little interest, but this shouldn’t be more than $10-15 at most on such a small amount. By doing this, you don’t have to worry about making the payments, and your credit will show as perfect as all payments will be on time. You also won’t have to worry about having the money to pay the payment when the time comes each month.

If you go the route of the CD, another option is to get a $600 CD, take out a $500 loan on it, take the cash and purchase another CD. You’ll have to come up with the funds to make the payments, but at the end of the CD term (once the loan is paid off), you’ll have $1,100! It’s a interesting way of saving. The bank pays you interest on the CD. The downside to having a CD is that it locks the money away for a period of time. For first time credit establishing, getting a 6 month or a 1 year CD is best.

This route also works for those with bruised credit! One individual had a credit score of 510, and 4 things in collections, and one judgment. He had a CD for a year, made the payments, and somehow his credit score was raised to 620 after a year. He still had the same collection accounts and judgments although it’s unknown how it got that high with that many derogatory accounts.

Once you’ve established your credit, it’s very important to keep it good. Don’t overextend yourself, it’s very easy to do. The best thing you can do is avoid high limit credit cards! Keep it within reach. If you must use a credit card, get the best deal possible. Don’t ever choose a credit card that requires a “application fee”.

Good luck and remember, take care of your credit. It’s the best thing you could ever do.

Online Loans and Their Difference with the Regular Loans

Humans are entitled to make mistakes; we are, after all, are only humans. So it is pretty understandable and logical if you suffer from a financial chaos. For instance, you just realized that you only have $5 in your pocket and yet your payday is still a week away. You haven’t filled the gas and the fridge is empty with no food left. Will you let your family starve to death? I don’t think so. Going to the bank is impossible because you know that you won’t get the loan that you want from them. So, the only logical way is to hit the internet and have the online loan.




Online Loan vs Bank Loan

What is an online loan, anyway? How is it different from the regular loan from the bank? Well, everything about the two loans is completely different. For a starter, the time length. The online loan is applicable for a short span of time – a month will be the longest. The bank loan, on the other hand, is designed for a long-term period with 12 months being the shortest.  Second, from the amount of money being borrowed. In the online loan, you only borrow a couple of hundred dollars – $1000 is the maximum amount. However, in some providers, you are allowed to borrow up to $1500, especially if you are a regular- meaning that you often borrow from them. In the bank loan, the minimum money to borrow is around $5000. So, if you only need to borrow, let’s say $200, for the next two weeks, you know which type of loan to take.


Other Things to Know

Regulations and process are another different things about the loan. In the bank loan, you will be dealing with tough regulations and complicated process. You will have to go through a background check, credit check, and so many others. And after you have waited for days, it is not a guarantee that you will get the loan. Such a bummer, huh? Moreover, never expect to get the loan if you have a negative credit history or record. The banks will never allow you if your credit isn’t promising.


Through the online loan, however, the process is somewhat easier and simpler. No need to wait for days. There is no complicated processing either. All you have to do is to go to the official website, fill in the already provided form, and send the application. Just wait until they get back to you to notify you whether you get the loan or not. Moreover, the provider won’t care whether you have a perfectly clean and flawless credit record or not. They don’t even care if you have a standard good record. All they care about is that you have a job and you will be able to pay the money back on time. Fail to do so and your debt will be the rooftop high.


That’s why it would be wise if you can borrow just as much as you need – don’t exceed it. Having the online loan where you can get fast money is nice but there is a hidden trap if you aren’t careful about it.


No Credit Check

Everyone encounters an emergency situation at one point or another. Sometimes, the emergency can only be resolved with cash. Although some people have the option of borrowing money, getting a loan from  bank, or putting everything on their credit card, this isn’t available to everyone.

If you have bad credit and need a loan, you shouldn’t lose hope. There are a number of no credit check cash loans out there. You can get the money you need regardless of your credit score.

Here are some of the options available to you:

Cash Advance Loan

This type of loan is exactly what it sounds like. You get an advance on your next paycheck. Your repayment schedule is determined by your pay schedule. Although these loans have high interest rates, the short repayment schedule makes them a good option for a lot of people.

No Credit Check

Title Loan

If you own your own vehicle, you might be able to get a loan by using your car as collateral. The maximum amount of money you can get is usually determined by the value of your car. Although you’ll have to make all of your payments on time in order to keep your car, you can get the money you need very quickly.

Personal Loan

It can be hard to get a personal loan without a credit check, but there are some online lenders who will consider it. If you have a steady job, your chances of getting a loan like this are much higher.

As you can see, there are some no credit check cash loans out there. If you need to get money very quickly, don’t lose hope. There are options out there even if your credit is a mess. You can get the cash you need.

Your Loan Options

Your Loan OptionsIf you have bad credit and you are having trouble getting a loan, a payday loan might be your best bet. These loans don’t require a credit check and you can get your money on the same or next business day. Payday loans are easy to qualify for and if you have a job, you can get a loan.

When you have bad credit, your options for getting a loan are limited. Most conventional lenders aren’t going to lend to you and you are going to get turned down as long as your credit is poor. A payday lender doesn’t care about your credit. The only thing they care about is if you have a job and a regular paycheck. As long as you have these two things, you can get the loan that you need.

You can find payday loans online. You should take some time to compare lenders because each lender will charge a different interest rate and you want to get the lowest interest rate that you can. You don’t want to end up paying more than you need to because the interest rate is already high with these loans.

The way to make a payday loan work for you is to pay it back right away. Don’t spread out the payments because if you do, you will have to spend much more money on interest. The interest rate is high with these loans and that extra interest will cost you. Plan to pay the loan back as soon as you get paid.

Payday loans can be very helpful when you need money fast and have bad credit. Even if your credit is good you might want to take advantage of how quickly you can get the money you need.

Cash Advance Loan

Cash Advance LoanA cash advance loan is basically for people who have a low credit score and are tired trying to to obtain a loan from traditional sources with little success.

Lenders that provide a cash advance loan. They know that having a low credit score does not mean that a person is not able to repay a loan. And so it’s really not surprising to find that the priority of these lenders is to help people get access to loans with no appraisal of creditworthiness. The cash from these  loans are readily  available, usually within 24 hours after the loan application is approved and the papers are processed.

Approval of these loan products is totally dependent on your current financial position, that’s, if what you are currently earning is enough to help you pay back the borrowed funds when payment time comes.

Because these loan products are easily available, you usually pay for it with much higher interest rates. If you do the math, you could be paying as much as 300% in annual interest rate. There are states, however, that have laws covering cash loans, and these laws have rules covering how much a lender can charge its clients in interest rates.

Before you apply for a loan, make sure to read the laws on cash loans in your state. It will help you to find the best loan providers. You don’t need to worry about finding cash loan lenders. There are many of them out there just as there are many banks. You just need to find the one that gives you the best loan terms and interest rates.

You could apply for a loan individually with three lenders or you could send an application one time with a portal site and wait for a response from different lenders.