If it hasn’t already, the day will come when you need some cash for an unexpected event. It may be car repairs, the need to replace the washer or dryer, or some other expense that you would rather not face right now. Fortunately, there are short term lenders who can supply the money that you need. As you begin to check into the options, make sure you put these tips to good use.
Types of Income That’s Accepted
Lenders want to know that applicants have reliable sources of income. That income must amount to the minimum required per month. While some rely primarily on income from a job, others are happy to include disbursements from pension plans, alimony, and other sources that provide cash every month.
Do take the time to find out what types of income are acceptable to a given lender. You may find that opting for loans that accept child tax would be in your favor. If you’re retired and on a fixed income, knowing that you could include your pension as well as any government funds received to qualify will make things easier.
Potential Loan Durations
How much time would you need to repay the debt? The goal is to opt for a loan that will not create more financial tension on the household budget. If a loan offer requires that you repay the amount borrowed plus interest in a short amount of time, it may not be a good fit. You would do better to look at a different option.
This is one of the reasons why looking at other types of loans is a great alternative to payday loans. The latter normally requires repayment in very little time. By contrast, some of the alternatives may allow you months or even up to a year to repay the debt.
The Interest Rate That Applies
Interest rates vary due to all sorts of factors. Your credit score may have some bearing on the rate you’re offered. The same is true for your income level or the ratio between your debt and current incomes. Since some lenders place more emphasis on specific aspects than others, you may find a fair amount of variance in interest rates.
Along with the actual rate, make sure you know how it’s applied to the loan balance. That provides a better idea of what you will pay over the life of the loan. Projecting the total cost will help you determine if the loan offer is really as good as it seemed at first glance.
Reporting to the Major Credit Bureaus
Do find out if the lender reports loan activity to the major credit bureaus. As long as you’re going to borrow money, it makes sense to seize the opportunity to add some positive comments to your credit reports. That’s especially helpful if there were some unfortunate incidents a few years back; more recent positive comments will help soften the impact of the older negative ones.
The bottom line is that if you are uncomfortable with a loan offer, do see what a different lender can do for you. A little attention to detail on your part could save a lot of money and help build a relationship with a lender who will be there if you ever need another loan.