Loans for Bad Credit
Did you know that the average credit score for the entire nation is approximately 692! To me that seems high to be considered to have average....When I recently went to purchase a car and finance a loan I was approved for a good rate but my score was only considered good or "B-" credit. Let me also tell you that I have NEVER been late for any payments, have about 60% debt on revolving accounts and never had a large loan before (not even a student loan 
) I consider myself to have great credit I have never had a blemish but I was told I just didn't have enough large purchases or a long enough credit tier to be considered for the premium interest rate. And that got me thinking, well who in the heck is getting the premium rate!
With the plethora of foreclosures and job losses millions of "good credit" Americans have recently taken hits to their credit scores. With few option left where do people go to get loans with bad credit. Well it depends on what kind of loan you need but there is basically a sub prime (because that is what you are considered if you have a score below 550) loan for any type of product including bad credit auto loans, subprime mortgages and even bad credit credit cards. However, because of your "bad" credit score, if you financially bind yourself to any sub prime loan you will pay a much HIGHER interest rate due to the RISK assessed by the lender to grant you a loan.
While I understand the need to adjust interest rates for higher risk loan applicants, it just seems like "everyone" is now a "risky" investment. Obviously the people that have money don't need loans, but what about the people that do that have just made a few mistakes, shouldn't we implement a forgiveness program or second chance loan programs!
Small Dollar Short Term Lending
When most people think about getting a loan, they think of a massive undertaking with years of payments to get out of debt, pay off the loan amount plus interest and fees. But loans are evolving to service the short-term need of cash or credit too. One of the most popular products that has blossomed due to the tighter restrictions on credit and lending by the American financial system is payday advances
Payday advances are short-term, small-dollar (usually less than $500) loans that exist to help people find and emergency cash before their next payday. Payday advances are granted based on a number of factors, BUT traditional credit score and history are usually NOT one of the factors. With all payday advances, people that apply must be U.S. citizens, over the age of 18, employed making over $800 a month and have an active open checking account. If you can meet all of these requirements above than you have a great chance of being approved for a payday loan.
But be careful, just because these loans are easy to get doesn't mean that they should be used frivolously. Payday loans can catch people in repeated cycles of debt and should be saved for real emergencies. For more information visit the Center for Responsible Lending.
Take it one payday advance at a time
When using payday advances, it is important to remember the rule of one! Only use apply and take out one payday loan at a time. Payday lenders use a salary based calculation to determine you capabilities of paying back your loan by your next paycheck. That is why a lot of lenders DO NOT lend more than $500 to customers there first time or sometimes after if they do not have the salary or bi-weekly income to pay back the loan.
Lenders calculate your loan amount based on a variety of aspects but amount of income and existing opened payday loans are two of the biggest factors in determining your amount. Even if you think you can take out a couple payday loans and pay them back on time, multiple payday advances are almost always a bad idea. Because if for some reason you cannot pay them back on time the interest can quickly build creating more debt than you ever anticipated and if you don't pay your advances back, your cash advance debt can be sent to debt collections , which can be irritating and annoying.
When using payday advances it is best to follow the simple rule, its better to be safe than sorry. And take one day(payday) at a time.
Personal Loan Scams
Its scary enough applying for a loan online. Entering personal information into a payday loan site can almost be twice as scary. I mean who runs these sites? What will they do with my information? Is this even a real site? Below are some good rules of thumb to follow when applying for payday advances online, as well as, helping you avoid personal loan scams
1) When applying for any product online, always make sure the site you are applying to and giving your personal information, is a trustworthy, real-time encrypted, safe and secure site.
2) Check a companies' privacy policies, terms and conditions, and security policy.
3) Check for a valid certificate. This can be found on the page that is usually a seal of protection from various Internet companies. When you click on the link it should bring up a valid security certificate, such as Verisign, or another reputable online security company.
4) When in doubt CALL, if there is any suspicious, abnormal questions or information, always call the number listed on their website for help, can't find a number. Feel free to contact the BBB or state in which they operate to find out more information on the company.
Credit Card Debt Ruining You???
Credit Card debt can be one of the easiest debt to rack up and one of the hardest debts to payoff. When we live in a country where debt is a form of currency, how can we avoid racking up thousands of dollars in debt.
1) Don't ever open a credit card just to open one (unless its your first or second). Having too many credit cards open even if they remain unused can hurt your credit score. Also, it is just a temptation to use them
2) Pay the balance off completely each month. just like payday advances, Don't take one out (or spend the money) unless you can pay it back by your next paycheck or billing cycle.
If you do manage to pay off your credit card debt, don't cancel your cards. Canceling credit cards can hurt your credit.
Call and negotiate your interest rate, you may be surprised, if you have been a good customer they may be willing to take your interest down a couple of points.
And if you are really in over your head you may want to consider debt relief or credit counseling services.