You and your spouse have been thinking of buying a new car or buying a home, because you’re family planning. You managed to collect a certain amount of funds yet, it isn’t sufficed to buy any property, vehicle, etc. Therefore, you think of applying for a loan. However, both of you’ll are already left with many payments such as bills, credit card expenses and loans. As a fact, you haven’t had a proven track record of a good credit history. This is one of the main considerations that banking institutions cross check. Hence, it would become a barrier for your loan application to be accepted. Therefore, if you’re in such financial jargon and you want to fulfill certain needs, you could opt for a short funds loan.
Yes, there’s a way for you to arrange money on short notice, even if you have had a poor credit history. It’s obvious that the bank or other lending institution wouldn’t agree to accept the application. Therefore, you have the option of getting the money for a broker or moneylender. There are certain negative pointers about this option but, if you have crucial requirements, this is the option. Given that, here’s what you should know about these short-term moneylenders:
i. How does the moneylender or broker a better choice?
• Unlike a lending institution, which goes through your credit histories, pay slips, etc. to grant loans, these lenders don’t do so. They would approve the short-term instant cash loan without such lengthy requirements.
• Moreover, you would have to write up any of your asset equivalent to the funds being loaned as a guarantee of repaying the amount lent. However, in the situation that you fail to pay it, they have the right to seize your asset or assets.
• You have the option of choosing the repayment scheme, which is;
– Repayment of the full amount at the expiration date with the interest. – Pay as you go with the interest amount.
ii. What if you fail to pay within the given repayment scheme?
• Depending on the policy of the lender, you’d be able to extend the repayment scheme of the short-term instant cash loan. However, you need to meet with the lender prior to the expiration date of the agreement for them to consider.
• If you delay it until the last moment, the interest charged for the late payment would be greater compared to other financial institutions. Moreover, they would extend it mostly by a month or two.
There certainly is a risk, when you opt for this type of alternative, as you have no other resource to turn to. However, in order to avoid unpleasant situations, you should identify your priorities and affordability. Think wisely and get financial advice from a professional. As a fact, you wouldn’t fall into deeper trouble or crisis, as much you are experiencing now.