Do Late Utility Payments Affect Credit Score?

May 2, 2012 • Personal Finance • by Don
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As long as you continue paying your utility bills on time, they have no bearing on your credit score. Although you cannot improve your credit score by paying utility bills regularly, they can still worsen your credit. Most utility companies do not report late payments the credit bureaus. However, if you refuse to pay after many notices have been sent, they may send your account to a collection agency. In such cases, a collection may appear on your credit report and this can be very bad for your credit score.

Note that the above applies only for the standard FICO credit scoring system. There may be other types of credit scoring models used by lenders and some insurers or service providers do consider your utility payment history, especially when you are signing up for gas, electric, mobile phone, cable, etc. If you do not have a well established credit history but have been paying your utilities on time for years, it will help.

Can I Make Half Car Payments Twice Per Month?

April 30, 2012 • Bad Credit Auto Loans • by Don
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When your car loan interest rate is too high but you are not allowed to refinance, there is another way to make your car payments cheaper. Some lenders allow borrowers to make 2 payments per month, that means you can pay down the loan principal slightly faster.

This is a good way to save money and effectively lowers the amount of interest you have to pay throughout the entire term of your car loan. If you are paid twice monthly, consider asking your car loan lender for this payment option. The actual amount depends on the interest rate given by your lender and whether it is any different from the normal monthly payment plan. You can use a car loan calculator and select the biweekly payment option to compare the amount you need to pay.

Even if you are unemployed, some people do find the smaller amount easier to pay although some feel stressed as the time left before the next payment is shortened by half. If you have not been able to get approved for car financing when unemployed, try asking lenders if they are willing to accept twice monthly payments. Your willingness to pay frequently may help you score some points. Do watch the payment date carefully as you are now twice as likely to make late payments and this can be very bad for your credit score.

How to Apply for Poor Credit Secured Equity Loans

April 26, 2012 • Loans For Bad Credit • by Don
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Are you having problems getting loan approval because of poor credit history? Find out how to successfully apply for secured loans for people with bad credit. This is now possible because there are more and more demand for such loans, in view of the high risk of unsecured loans. Lenders are more willing to give secured loans since borrowers are deterred from defaulting, which is why the APR for secured loans is also cheaper. However, if you cannot keep up with monthly payments, your credit score will be greatly affected.

Poor Credit Secured Home Equity Loans

As long as you can offer collateral such as home equity, you will be able to easily get a loan approved even with very bad credit or unemployed. Lenders will usually request for the equity value to be twice as large as your loan, so that after deducting expenses from foreclosure and home auction, they are still able to recover their money. On the other hand, homeowners that put down their home for a loan can lose out pretty badly. That is why very few people default on home equity loans compared to other types of unsecured signature loans, such as a long term installment loan.

Do I Have Sufficient Home Equity For A Loan?

Not all homeowners can apply for a home equity loan. Firstly, you need to have sufficient equity in your property, which is its fair market value minus all existing mortgage and liens. This is the maximum amount that belongs to you, although the actual amount allowed is about 50% to 75&. Lenders will insist on that margin to protect themselves from miscellaneous expenses related to the default and forced home sale process. If you bought your home using 125% home mortgage over the past few years, it is likely that you may not have sufficient equity to tap for a secured loan.

Debt-to-Income Ratio Requirements For Home Equity Loan

Lenders that give secured home equity loans are not too concerned with your credit score, although they do check your credit history, existing debts, income history etc. Unlike what many people suspect, banks have no incentive to foreclose on homes since it generally a lot of negative sentiments, so rest assured that they are not trying to cheat your home through equity loans. You have to demonstrate you have the money or income to pay the monthly installments. Thus, if your debt to income ratio is dangerously high above 40%, you are not likely to get a secured loan using your home. Most legitimate lenders will not allow you to borrow against the value of your home in this case, and some may even suggest you to sell the house to pay off your other loans fast.

Poor Credit Loans If I Have Stable Employment

Your chances to get home equity loans are higher if you have a steady employment history for the past 12 months. Lenders understand that credit rating is a form of lagging indicator and it takes time for good creditability to be acknowledged by the credit agencies. Meanwhile, as long as your income is stable and your debt to income ratio is satisfactory, you can get an equity home loan with poor credit. However, if you only have temporary employment such as probation period or is self-employed with irregular income, a loan broker will be able to provide useful tips on lenders that can help you.

Since every application for a home equity loan will show up on your credit report, avoid doing so since it will drag down your credit score. This means you should not try to apply for 100 loans with bad credit, hoping that you can get lucky. Lenders will view such activities as desperation, and likely that you will face problems with future payments. Just get your latest credit score generated and if it is under 500, fixing it is more important than sending more applications. Furthermore, the consequences of not paying the monthly payments on equity loans can lead to home foreclosure.

Can Loans for Bad Credit Get You Into Financial Difficulties?

April 25, 2012 • Loans For Bad Credit • by Don
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Loans for bad credit, such as no credit check loans, online cash advance etc are designed for people who cannot get a cheap loan from banks due to their poor credit scores. While it can be easy to get a bad credit loan, the high borrowing costs make it difficult to pay off the debt, and many can worsen their existing financial difficulties. Find out whether you are suitable for these high risk loans or not.

For many students or tenants, they can only get unsecured personal loans when they need some extra cash. However, the only way to borrow money with bad credit tends to come at a high price. The lenders usually offer instant loans with no credit check so anyone can get a loan approved, no matter what kind of credit issues you may have. You can even get the money deposited directly into your checking account within 24 hours.

The popularity of online loans with no credit check has risen rapidly in recent years, due to the convenience and privacy offered to borrowers. With more and more people having bad credit and high debt to income ratios, they find it hard to get a cash advance at banks where rates are slightly lower. So when you need a short term loan with no questions asked, many turn to these online loan companies for poor credit history.

Borrowing Costs for Short Term Bad Credit Loans

Short term loans with no credit check are often used to pay for expenses until you get paid at the end of the month. Be prepared for 400% APR on such loans since many borrowers default on payment obligations, so the lenders have to increase the fees correspondingly.

For many people, paying back a bad credit unsecured loan from your paycheck means having not much money left for day to day expenses for the remaining month. The result is that they end up taking yet another unsecured loan as the temporary easy way out. Needless to say, the situation will only become worse. A no credit check loan is an easy loan, but never a cheap one. You can easily double what you originally owe on such loans in just 6 months. Never use such loans to pay for another debt since their high APR is not likely to help you save money.

Therefore, I would be mad to consider getting unsecured instant loans for buying luxury items or holidays. On the other hand, you can give it some thought for purposes such as paying the rent or bills to avoid the service being cut off. Even for someone who is facing financial difficulties, there may be better options compared to taking a high risk loan online. For example, try asking friends or family for a private loan which usually comes with flexible payment and interest free.

To ask whether you are suitable for bad credit loans, see if you need to borrow money for a desperate and one off short term need. A single loan is usually not capable of resolving some deep grained financial problems you have. Seek out advice on proper money management practices and change the way you budget and spend your money.

What if I Default on Unsecured Loan Payments?

Lenders know the risk of giving unsecured loans to people with bad credit or unemployed. Many borrowers are less motivated to pay back the money, thinking they have nothing to lose since no collateral is involved. Due to the higher loan default rates and administrative costs of collecting payments, the high APR on such loans is justified. Bad credit lenders will simply sell late accounts to debt collection agencies, recognizing such losses as business costs. Note that debt collectors will be very aggressive in trying to recover the loaned money from borrowers, often bordering on creditor harassment at your home and workplace. Some people even lose their jobs due to continuous harassment by debt collectors at their workplace.

If you are tempted to get no credit check loans, we hope the above explanation on the pros and cons of such bad credit loans can help you make a wiser decision. If you are already having problems with a lot of personal debts, consider a debt management place instead of another loan.

How Can I Save Money Each Month?

April 23, 2012 • Personal Finance • by Don
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Even though the cost of living are rising faster than your income, there are still ways to save money every month. The first step to increase wealth is a good level of regular savings and cutting unnecessary expenses. These money saving tips can help you reduce bills and wastage.

Are you wondering why it is so difficult to pay your monthly bills, while others with lower income seem to get by just fine? Maybe these money saving suggestions can help you to save money every month. If you have bad spending habits and do not plan your budget properly, you tend to use your money for granted thinking that you get some more cash anyway by the month’s end when the paycheck arrives. What if you lose your job?

By examining your day-to-day expenses, you can identify places where you are spending too much of your money and work towards lowering your cost of living. This will help you build up some savings to cope with any financial problems in future without having to take a personal loan.

Save on Household Goods and Clothing

Choose to buy used household goods from eBay or the local charity shop. For example, you can buy second hand patio tables and chairs or chests in good condition for less than 50% compared to a new one from the mall. Take your time to check for cheap bargains on eBay used furniture and home appliances. You can save several hundred of dollars easily. Look out for garage sales in your neighborhood and take the opportunity to buy essential items from neighbors that are relocating. Make sure to check the items for damages and price them accordingly.

Is Joining a Car Pool Cheaper?

With gas prices rising, driving to work is a major expense for many households. You can choose to form a car pool with co-workers living within the same area, so each person takes turn to drive everyone to work. You can save as much as 50% on commuting costs every month.

Remember to turn off any unused electrical appliances instead of leaving them on standby. It has been shown that leaving home appliances on standby wastes a lot of electricity every year. For example, turn off your TV, DVD player, microwave, modem when not using them.

If you love to buy and use branded goods, make sure you can really afford them and not buy on credit. Otherwise, it is easy to end up with a lot of credit card debts and you will find it hard to sell away your branded goods to get back even 50% of their original price.

Save Money on Groceries

All major retailers sell their own generic version of popular foods and groceries. Ask for a sample pack to trial whether it is suitable. then you can buy in bulk for even more discounts.

Reduce Heating Bills With Roof and Flooring Insulation

A lot of home heating is lost through poor insulation on our home walls and loft. Check your local state whether you can get a home improvement grant for making your home more eco-friendly and energy efficient. For example, installing a thicker 270mm loft insulation can save you a lot of heating bills.

The above are some ideas to help you start thinking about ways to save on your daily expenses. Each of the above suggestions can help to increase your savings every month. by making a few changes in your living and spending habits, you can easily end up with more cash in your wallet and spend less on bills.

If you really find it difficult to follow these money saving guides, then the next best option is to increase your income. There are many ways to make more cash, such as getting a weekend or evening job. There are also some self-employed work at home job opportunities you can try out to increase your income so that you can continue to afford your current lifestyle while having more spare cash for the bank savings.

How to Avoid Bank ATM Fees

February 17, 2012 • Prepaid Debit Cards • by Don
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Banks That Reimburse ATM Fees

Now, there are more banks that rebate ATM (Automated Teller Machine) fees. Whenever you withdraw money from your accounts using the ATM machine, there is an ATM fee levied. This is applicable whether you are using the ATM machine from another bank or ATM owner (ATMs that are owned and operated by separate businesses entities).

From the banks’ perspective, ATM services do not generate any revenue and is actually a cost. However, it is necessary to provide ATM banking for customers or they will simply go to another bank. The banks with more ATM machines tend to have a competitive advantage as consumers like to have easy access to their accounts and money withdrawal. Different banks usually have some agreement among themselves to allow customers to use the various ATMs within the same bank network for transactions. Doing so allows them to leverage and reduce their ATM operation costs. While you can usually use the ATM belong to your bank for free, you may need to pay a fee with regard to using other bank’s ATM machines.

Since ATM machines are expensive to build and maintain, the smaller banks found that they can provide the same convenience to users by reimbursing the ATM fees charged to their customers when using ATMs belonging to other banks. This allows them to have the same competitive advantage as larger banks yet at a lower cost. This is especially true with the new online banks with no physical branches or ATM machines. You are usually allowed a certain number of free ATM transactions per month.

List of Banks that Rebate ATM Fees

Here is a list of banks which reimburse your ATM fees:

Bank of the Internet – $6 rebates per month for ATM transactions at other banks

ING Direct Electronic Orange account – free ATM withdrawals from ATM machines on the Allpoint Network

Founder’s Bank and Trust of Grand Rapids – can open new accounts online. ATM card can be used worldwide and 4 free ATM transactions per month for using another bank’s ATM.

First Internet Bank – up to $6 fee rebates per month for interest bearing checking accounts, money market savings accounts and regular savings accounts.

E*Trade – well known online stock trading brokerage with online banking services. The E*Trade Max-Rate checking account offers unlimited ATM surcharge rebates except a 1% fee for ATM transactions in non USD currencies.

Charles Schwab Bank – internet bank with checking account that gives unlimited ATM surcharge rebates. Restrictions apply.

NetBank – rebate ATM fees up to $3.50 per statement cycle. This is an only online bank with no branch offices. All banking transactions are conducted online or through ATMs.

Ways to Avoid ATM Fees

There are many more online banks that give ATM surcharge rebates, although the amount of free ATM transactions varies. For example, USAA Federal Savings Bank will rebate the lesser of fees on 10 withdraws per month or $15 per month. There may be certain terms and conditions to enjoy free ATM banking, such as having a minimum balance. There may be other fees such as statement fees, per check fees, etc. which can cost you more compared to the ATM fee rebates given.

Note that these are rebates, hence the fees will still be deducted from your account at the time of transaction. They are only returned to your account at the end of the month together with your statement. I use the following method to track ATM surcharge fees – when I do an ATM withdrawal, simply subtract the amount withdrawn and the fee from the balance in my checkbook. At the end of the month, the total rebates will show up on the bank statement as a deposit.

If your current bank do not offer any free ATM withdrawals, here are some alternatives.

Banks With No ATM Fees

Maintain a bank account with unlimited ATM rebate specifically for ATM usage. There are some banks with no fee account option. Even though they may not provide other essential banking features, you can use this account just for the free ATM transactions. Deposit the amount of money you need for each month into this free ATM account, while keeping the rest of your money in your regular bank checking account. you can do this via a check or through online electronic deposit.

The ATM fee is a flat fee per transaction regardless of the withdrawal amount – you pay the same fee for withdrawing $20 or $100. Plan your money needs and make a few large withdrawals per month. Most banks will only rebate up to 5 ATM withdrawals per month. For example, if you tend to withdraw $20 every day from the ATM machine, switch to making a $100 withdrawal each week.

Debit Card Cash Back

Many banks provide a debit/credit card that can be used for ATM transactions beside purchases. When you use the card to make a purchase, you can choose to receive additional cash back in multiples of $20. This is actually equivalent to a free ATM cash withdrawal. Thus, you can get free cash withdrawal with no ATM fees whenever you pay with your debit card.

Use your debit or credit card for purchases instead of paying cash. Many vendors now accept cards and you can also earn some cash rebate or reward points by using your debit or credit cards for purchases. This avoids the need to withdraw and carry cash. For example, the USAA rebates 0.5% of the total amount charged to my credit card, so I usually use the card and hardly need to pay cash.

There you go, several ways to reduce your ATM fees and take advantage of new offers to find the best banking deals for your needs.

$200 Emergency Cash Loans For Unemployed

February 6, 2012 • Loans For The Unemployed • by Don
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Trying to get $200 emergency cash loans for the unemployed is quite easy compared to the past where there was no online loan companies. Now you can get an instant loan online without faxing any documents or pay stubs. If you are uncomfortable visiting the neighborhood loan shops, there is no need to personally ask for a loan in person. There are online lenders that give emergency cash loans for the unemployed and you can apply anytime 24 hours.

The waiting time for loan approval is very fast, typically within 1 hour, a representative will contact you to verify your bank information so that they can directly deposit the cash to your checking account. Depending on your bank’s processing, you should be able to withdraw the money within the same day or the next working day. There are no questions asked for $200 immediate unemployed cash loans, which can be used for any urgent expenses when you have no job or income. The best way to use the money is to help you get a job, so that you have no problems paying off the loan on time.

Do not worry that you have a poor credit history because such lenders do not use credit check to screen borrowers. Of course, this is only true for small loans like $200 which is like chump change for the lenders. Things will be different if you are asking for a $2000 unsecured loan with no job or income plus bad credit. The lenders are not charity, mind you. Indeed, some people do call these as legitimate loan sharks that give high risk bad credit loans.

So the price to pay for emergency cash loans for unemployed of $100 to $900 is a much higher interest rate compared to other types of loans. This is quite fair since lending money to people who have no income to pay back is a risky business – and many borrowers really default on payments making it a costly process to collect back the money.

To be eligible for same day cash loans with no job, you need to be at least 18 years old and have a valid checking account. It does not matter if you have very bad credit and you can ask for a 2 month loan term so that you have more time to get money for payments – either through getting a new job or selling off your possessions. Just do not get a new 90 day signature loan for bad credit to pay off the existing ones.

Just a gentle reminder for first time borrowers. Make sure you check that the lender is real and preferably BBB accredited to avoid scams and frauds. Do not be tempted to get a $200 cheap loan with no income check because that is the usual trick used by fraud loan companies.

What Are No Credit Check Car Loans

January 30, 2012 • Bad Credit Auto Loans • by Don
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Trying to recover from personal financial failure such as the loss of career, folding of your small business etc is never easy, but its not the end of the world either. It all starts with adapting your inner expectations. Stop reminiscing about the days of living in upper class neighborhoods, and driving luxury cars. Being able to flip hamburgers, and having a shelter is good enough since there will always be others less fortunate. Start your new life positively and once you get going, you will be able to reap personal rewards sooner than you imagined.

No Credit Check Car Loans

Having your own car certainly helps to improve chances of getting higher paying full time jobs compared to delivering pizzas. Look for used car dealers in your area and some of these used car lots offer no credit check car loans to help close the deal for buyers. If your credit score is as bad as mine, simply accept the fate of relying on such high risk car financing in order to purchase a vehicle. Bad credit car loans are nothing new, since many drivers need to have their own set of wheels regardless their FICO score.

Buy Here Pay Here Used Car Lots

Used car lots with in house financing are usually known as buy here pay here car dealers. Such used car financing are very convenient and easy to get approved, because you do have to put money for the down payment. Usually, they will also accept third party financing although not many lenders are willing to pre-approve auto loans for older vehicles. The best way to buy used cars will be to check out the current inventory at each car lot and look for something suitable, then bargain hard until you are satisfied with the deal.

No Credit Check Auto Loans

Before visiting the dealer’s lot, have a clear idea on your budget and the type of cars or trucks you need to drive. Otherwise, you may get sidetracked by the wide variety of options and choose a car you want, and not one you needed especially for work purposes. Ask for the down payment and weekly car loan payment required, to see if you can afford that used car. Remember that these are guaranteed approval auto loans, as long as you can pay the money down they asked for. However, do not think of getting a fast loan in 1 hour for the down payment. Be conservative and do not be tempted to buy thinking someone else will snatch it if you don’t.

If you have a modest budget, it is better to be upfront and let the car dealer recommend the available models that meet your price range. Note that buying a used car with bad credit is nothing like shopping for the latest cars. You are here to buy a car that can help you get a better job, and not one to enjoy ride or impress your dates. If a small 10 year old Toyota is the best deal available, settle for it and let it help you earn some money.

Used correctly, a no credit check auto loan will help you improve your life and get better work. As long as you make timely payments every week or month, the lenders will report to the credit bureau and help fix your bad credit score.

Easy Loans for People with Bad Credit

January 9, 2012 • Loans For Bad Credit • by Don
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Where to find easy loans for people with bad credit – this is a question more people are asking, in case they are in a pinch and need to borrow some money. If you have not been taking care of your own credit history, it will come back and bite you in the foot, giving you lots of trouble with getting cheap loans approved. The trouble with borrowing money nowadays is all based on your FICO credit score, whether its a mortgage, private student loan, car loan etc.

It is easy to damage your credit history while a lot of work is needed to rebuild it. Forgetting to pay your credit card bills on time is enough to warrant several months of cleaning up your credit report. Meanwhile, when you have bad credit and need a loan, the only option may be no credit check loans which are charged expensive interest rates. If you have never taken a loan previously, here is a check list to help you find the best personal loan for people with poor credit.

To make sure you can easily qualify for the cheapest unsecured loan if you have bad credit, follow these simple steps:

1. Get your free copy of credit report and check for any mistakes which can be rectified. This is the fastest way to improve your credit score if possible.
2. Pay off any small balances so that outstanding accounts can be closed. This reduce the amount of open credit and help to improve your chances to qualify for loans.
3. Ask a trusted friend or family to be your loan co-signer. He or she must have better credit compared to you, and a stable income.
4. List down any assets that can be used as collateral to secure a loan. Examples, include your home, car or business inventory and equipment.
5. Get free loan quotes on the Internet from lenders that specialize in instant bad credit loans.
6. Research on the best type of loans to apply in order to meet your purpose. For example, if you need financing to go to college, try applying for $10,0000 scholarships or government Stafford loans instead of unsecured personal loans.
7. Do you have any rich friends or relatives? Such personal loans are easy to get no matter how bad your credit is, unless you have some feud with that person previously.

Easy Loans for Bad Credit People

To get easy loans successfully, all you need is the above extra steps which does not require a lot of effort. Doing so allow clear your mind and help think of other ways to come up with the needed funds. Always remember that your credit score is always changing and whats good and turn into bad pretty fast with a series of financial mistakes. With some patience and diligence, you can rebuild bad credit and enjoy hassle free bank loans at the best rates possible. If you are unsure about the loan agreement, look for professional unbiased advise before taking the money.

What To Do When Your Loan Gets Denied

January 7, 2012 • Fix Bad Credit • by Don
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Why Is My Loan Denied?

It can be very disappointing to be denied a loan, especially when you needed to borrow money urgently. There are many reason why you need a loan fast, such as buying a house, a car or to pay for education. These are important milestones in life and we should try to get financing approved despite being denied by the first lender we approached. Indeed, there are several available options when your loan gets denied. To ensure better success, you need to understand why your loan application is turned down by the lenders. This allows you to fix any problems and prepare yourself to be in better standing the next time you apply for a loan.

Bad Credit – Many people cannot get a bank loan because of bad credit scores under 600. Prospective lenders will compute your FICO score using your credit report maintained by the central credit monitoring agencies Experian, Equifax, and Transunion. This credit report contains information on your debt payments as submitted by your lenders and creditors. If you have defaulted on your loans or made late payments etc, your credit score is reduced and some lenders may consider you to be a high risk borrower and thus deny you a loan. These negative remarks will appear on your credit report for months or even years, which is why it is important to take your loan payments seriously. This is the lenders’ industry standard for checking your credit worthiness whether you need financing for a car, or student loan.

Note that if you have never taken a loan or credit card, you probably have no credit history. This is typical for students and young working adults. Unfortunately, lenders may also deny you a loan because you have no credit history.

Low income / Unstable Income – It is unreasonable to ask for a $1 million dollar loan when your annual income is only $15,000. Lenders will check whether you can pay back the borrowed money with interest, and they may either deny your loan application or reduce the maximum amount to a smaller number. If you cannot prove that you have a stable income, it can be difficult to get a bigger loan than $500.

Too much debt – Sometimes, you cannot get a loan even with a high income. This is because the lenders found out that you have a very risky debt-to-income ratio. Your existing debts such as credit card balance, mortgage, car loan payments etc can prevent you from getting a new loan when the debt-to-income ratio (DTI) exceeds 50%. At this DTI level, most lenders question whether you can meet all debt obligations since almost all of your monthly pay check will be used for expenses and existing loan payments. You may need to completely pay off some loans before you can get a new loan.

Minimum Down Payment – This applies on secured loans when you are buying a home or car, where you make an up front down payment and borrow the remaining required to make up the selling price. The lenders want borrowers to have some equity in the home or car before they approve the loan. This is proven to reduce the probability of default since you will lose your down payment or existing equity in the home.

How To Get Unsecured Loan Approved With Co-Signer

Many people cannot get an unsecured short term loan because of bad credit or no credit. To get around denial from unsecured loans, the best option is to use a co-signer. This can be a friend, your parent or someone with good credit. A loan co-signer will sign on your loan agreement and will be responsible for paying the loan if you default. Many young people rely on their parents or guardians as co-signer for their student loans.

A co-signer works well for both borrower and lender. The lender assumes lesser risk since there are now two persons responsible for paying back the loan. The borrower enjoys cheaper interest rates because the loan is approved based on the good credit score of the co-signer.

The problem in getting a co-signer is trust. Not many people will be willing to co-sign your loan because they will be legally bind to the loan contract. They risk having to take over your loans and damage to their own credit score. That is why co-signers are usually family members or close friends.

When lenders turn down your loan application, the fair credit act mandates that they must disclose why they deny your loan. This information can be useful because it tells you the exact problem whether it is caused by poor credit history, insufficient credit, existing debts etc. You can fix these problems so that you are better qualified for a cheap loan in future.

Bank Loan Denial Due To Bad Credit

If you cannot offer any loan collateral or co-signer to secure a loan from banks or credit union, your remaining option is the bad credit money lenders. The danger with taking high risk loans for bad credit is that you actually increase your chance of a downward spiral towards debts and bankruptcy. This usually starts with poor money management, lack of personal savings and uncontrolled use of credit cards. Never take out a no credit check installment loan to pay off your credit cards, because the interest rates on your second loan is usually higher than the first making it even more difficult to pay off and become debt free.

The only time to resort to a high risk unsecured loan is for real emergencies, where not having the money will cost you worse off than the interest rates demanded by these money lenders. You should limit the maximum amount borrowed from bad credit loans, not more than $3000 and try to pay it off within 6 months.

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