A Guide to Getting Cash Loans for Bad Credit Debtors
At this moment in time, we can all agree that the world’s financial system is in need of desperate rework. After all, there are millions of people dealing with bad credit, who are thus unable to get cash loans they may rely on.
Reasons for Needing a Cash Loan
Many people choose to deal with financial hardship by budgeting every penny, and spending wisely. This is certainly the way to go, but there are times when budgeting alone won’t cut it. However, what happens if you’ve run out of money, yet still need to purchase a variety of products and services? What if it comes down to choosing between paying your bills or purchasing groceries?
Here are several examples of how people choose to spend their cash loans:
- Paying medical bills: Emergency medical treatment is oftentimes expensive, especially if you do not hold valid health insurance. Attracting more medical debt isn’t always possible, nor is it always an option. This has often been reported as a common reason for cash loans.
- Making a large purchase: Of course, there are also moments when a large purchase is required – for your personal pleasure, or simply because it needs to be done. Cash loans with no credit check are bound to help you through this difficult step.
- Covering urgent bills: Sometimes, there is no way to pay for an unexpected bill without having to take a cash loan. After all, borrowing from friends and family is not always an option, whereas getting a personal loan is very difficult with bad credit.
- Rent or moving expenses: Your rent is due, and there are no funds left for paying it. Bad credit makes getting a persona loan very difficult, if not impossible. In cases like these, expenses also seem to be piling up, and oftentimes, people feel like there is no way out. Luckily, cash loans are bound to help, at least in some measure. They can also help with moving expenses in case you need to find another property to live on, regardless of your reasons.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
So, how do you go about getting cash loans for bad credit?
The financial market is overwhelmed by a common misconception stating that there is no way to get a loan of any type in case of bad credit. Indeed, this statement applies to most loans given out by banks (such as mortgages, personal and commercial loans), yet it is not applicable for all loan-related financial instruments featured on the market.
A quick Google search will likely yield results consisting of numerous agencies that are advertising cash loans, targeted to individuals suffering from bad credit.
How These Agencies Operate
The key to how these agencies operate is that they do not conduct a credit check when you submit your application. In fact, most of them do not conduct a credit check at all. As such, these agencies generally rely on current circumstances, such as employment status and your monthly salary. Other agencies may choose to disregard this aspect completely, and thus be happy to give you bad credit loans as long as you can place an object or property in their safekeeping, as a guarantee.
Are there any disadvantages?
Several, but in many cases, they aren’t regarded as disadvantages by the customer, given the fact that in most cases, the £100 loan is truly needed. With this in mind, when applying for this type of cash loan, it is important to keep several aspects in mind.
Firstly, the interest rate of the loan will likely be higher when compared to the rates offered by banks and other financial institutions. The main argument for higher rates is easy to understand – these institutions are exposing themselves to considerably larger chances of never receiving their money back. This high risk factor is directly responsible for the higher interest. On the other hand, in case you place an object or property as a guarantee, the agency will have to follow the legal steps require to take legal possession of the item in question, in order to facilitate its resale.
Other agencies may choose to blacklist customers who do not pay the loan back after the agreed due date. This is also quite normal, since companies like these want to protect themselves from further business from debtors who are either unable, or refuse to pay back their loans in time.
Lastly, the final disadvantage is that cash loan agencies are unable to offer large loans. Most of the times, the loan amount depends on your current salary, or the possessions that you are able to give as guarantees. Therefore, a cash loan is more like an emergency money fund, rather than a source of income that you can rely on. The best course of action in cases like these is to focus on paying back the cash loan as quick as possible, and do your best to ensure that emergency funding will no longer be needed in the near future.
As such, the next part of the article is meant to highlight some of the main factors that should be considered when it’s time to regain your financial freedom.
Regaining Your Financial Freedom
Indeed, cash loans for bad credit are very useful services, which are bound to help people out of their darkest times. However, these loans shouldn’t be abused, regardless of whether you’re able to pay them back. They are designed to be a helping hand; therefore abuse of the service will likely set you back even further.
With this in mind, most financial experts recommend smart financial planning, to ensure that you create a smart budget, capable of paying rent, utilities, and groceries. It’s best for people who are in this position to reduce their quality of life, in order to improve their overall credit score. Failure to do this can lead to a lifetime of being a debtor, and stressing over which loan should be paid back first.
However, one thing should be clear. If you find yourself in this position, something needs to change as soon as possible. A first tip would be to talk to your co-workers and do some market research, in an effort to figure out if you’re underpaid. If yes, the next logical step would be to ask for a raise or a promotion. Of course, a plethora of particularities tend to influence whether the raise/promotion can be given, so if the answer is negative, don’t sweat it just yet.
Research has shown that there is a mass demand of workforce across all of the world’s industries. Based on this aspect, you might want to consider changing jobs or the career as a whole, in an effort to find better paying employers, or at least a job that gives you some form of flexibility. The key aspect to keep in mind is that improving your bad credit is only possible with a bigger income. Therefore, this might express that it is time for you to start looking for a second job, or figure out how to do some freelancing on the side.
Things to Avoid
The grind is real, and millions of people are affected by it. To ensure that you keep your stress levels relatively low, and that the current situation does not take a toll on your mental health, there are several things you should avoid doing.
- Do not avoid getting a bad credit loan if you or a loved one needs medical attention: There’s nothing more important than our health. Credit can get worse and financial hardships might get stronger, yet healthcare shouldn’t be sacrificed.
- Do not overwork: People throughout the world choose to take 3 jobs, and therefore keep themselves busy for 20 hours a day in hopes of improving their income. Yes, this is a strategy that achieves the desired result, yet it’s not recommended since we are not robots, and no human is capable of efficiently working for more than 12 hours a day.
In cases like this, you might want to try a different approach – use your free time to learn a new skill, and to improve your overall education. The key to financial freedom is not to work long hours for the rest of your life, but rather to excel on a certain market or niche. Therefore, in cases like these, it is best to figure out your passions, and work on improving the respective skills. This will open up new doors of possibilities, and thus make it easier for you to pull yourself out of financial hardship.
Based on everything that has been outlined so far, easy loans for bad credit represent an excellent solution for people affected by bad ratings, which are in need of emergency funding. Doing your due diligence when researching agencies is imperious to ensuring that you choose the best provider for your current needs. On the other hand, it is always best to avoid overworking – the key is to find a better paying job, or figure out ways to improve your overall skills.