Cash loans have been the saving grace for many people strapped for cash.
Being strapped for cash when you really need it can be frustrating and problematic. It can set you back from achieving your goals and it can hold you back in life. Cash loans come in handy when you need cash for an emergency or when you have a sudden expense that you weren’t planning for.
For most of us, living from month to month on a paycheck leaves little room for savings and it leaves even less room for unexpected expenses. Few of us can afford to fork out thousands of Rands to fix that bump on our car that was caused by a reckless driver, or to replace that burst pipe that you had no spare money to fix.
Life is going to be full of financial surprises that will have the ability to cause an upset in your expenses and if you already have a bad credit record then these little upsets are going to create a bigger ripple than you are able to deal with. And while there are many cash loan options available, not all of them are made available to those who have a bad credit score or who have been blacklisted.
How did I get bad credit? I don’t even know what that means!
Bad credit can have many names and, as a result, each credit provider might have their own name for it. Basically, bad credit is referring to your bad credit score. How do you get a bad credit score? It is actually all too easy to get a bad credit score. By missing a few monthly repayments, you can find yourself in hot water. And it doesn’t even have to be an act of recklessness that gives you a bad credit score. Unexpected financial difficulties, the loss of a job or even forgetfulness can all result in you getting a bad credit score.
You might even be surprised to learn that having no credit history will also result in you having a bad credit score. If you have no proof that you can pay back the money that you would like to loan, because you have never taken out a loan before, credit providers are going to be very reluctant to give you the money. So it really isn’t something bad that you have done that is going to result in you getting a bad credit score and be in need of a bad credit loan.
But having bad credit does not necessarily mean that you will not be able to get a cash loan to ease the financial burden that you are experiencing. Credit providers are not as rigid as they have been in previous years. Today they take into consideration exactly why it is that you have a bad credit score, looking at all of the possibilities surrounding why you have this status. After they have taken all of the possible factors into account they decide whether or not to give you a loan. In the past, they might have shredded your application upon seeing your bad credit score but these days it is not as harsh as that.
I have bad credit and now I need a cash loan. What can I do?
The best place to start when you have bad credit and need a cash loan is to find the right credit, provider. There are many cash loan providers out there but choosing just any provider without doing your research can land you in deeper financial trouble than you started with. A credit provider is almost always, without a doubt, going to expect you to pay interest on the amount that you have loaned. The interest rate that the provider has set on the cash loan is something you should pay very close attention to.
You can sometimes end up paying back much more than the loan was worth just in interest rates. The cash loan is meant to help you cover that expense or get you through the month, it is not meant to cripple you. Choose the provider who has a reasonable interest rate and try to avoid getting your fixed assets involved in the loan making. Cash loans should be kept small so that there is less risk for both you and the credit provider. A great cash loan provider is going to want to encourage you to only loan an amount that you can afford to pay back. Again this is to protect both you and the credit provider. The credit provider should not want to put you further in the financial deep waters.
Have a look at your cash loan options, there are a number of them available these days. You can loan cash from a credit provider or you can make an agreement with a family member. Keep in mind that keeping things strictly business is sometimes the better option. When loaning money from a family member there could be complications that end up affecting the family. Loaning money from a credit provider is often the safer option.
Is there a limit on the amount that I can loan?
This question can only be answered by the loan provider. But as you have a bad credit score, it is safer to rather only loan a small amount of money in the form of cash loans. If you have bad debt because you have not been repaying your debt then the loan provider is unlikely to want to loan you a large amount of money. And again think about the interest rates. If you decide to take out large cash loans, the interest rate that you will end up having to pay back is going to be more than if you took out a smaller loan.
Let cash loans be your bad credit quick fix but don’t let it be your permanent go to option. Rather try to improve your credit score and take out loans only when absolutely necessary. With times getting tougher taking out a loan is sometimes the only option but try to only take out a loan when you have necessities to pay, not luxuries that you desire.