Taking out a payday loan is a wonderful short-term option for those who need quick cash and don’t have the time to go through the lengthy application process required of most other loan types. However, as with any loan, responsible borrowing is key to being able to pay back the loan in a timely manner and avoid fees.
Still, emergencies arise, and if you find that you’re having trouble paying back your pay day loan for any reason, the good news is that there are a few steps you can take.
Ask About an Extended Payment Plan
First and foremost, always let your pay day lender know as soon as you’re aware that you won’t be able to make a payment. When you contact your lender, ask if they offer an Extended Payment Plan (EPP) option; pay day lenders who are also members of the Community Financial Services Association (CFSA) automatically offer their borrowers the option to enroll in an EPP, which will allow them to amend the original loan agreement and take additional time to pay back the loan with no extra fees or interest accrued.
Cancel Automatic Payments
Of course, not all pay day lenders are members of the CFSA, and as such, many of them don’t offer EPP enrollment as an option. If this is the case, the best next step you can take is to cancel any automatic payments that your lender may be authorized to take out of your bank account. This can be done by calling your bank and asking them to cancel the Continuous Payment Authority for your lender. This will at least allow you to keep the money you have in your bank account so you can use it for necessities such as groceries and utility bills.
Work With a Professional Debt Adviser
Of course, stopping automatic payments on a pay day loan isn’t going to make the interest and fees go away, which is why it’s also imperative that you work with your lender as much as possible and consult with a professional debt adviser. Depending on your income and financial circumstances, there’s a good chance you can find a debt adviser to assist you free of charge. Specifically, such an expert may be able to negotiate with your lender and, at the very least, act as a helpful point of communication between you and the lender for the time being
To learn more, contact a company like The Money Place with any questions you have.Learn More
It is no secret that your credit score is one of the biggest factors considered when you are applying for a home loan. However, even people with less-than-perfect credit get loans to buy a home. Therefore, it is obvious that your credit score is not the only deciding factor. What you may not know is there are many things you can do when you apply that can get you a rejected application. Here are five reasons you could be turned down for a home loan.
1. Erratic Employment History – Your ability to maintain a steady form of income will be held in high regard any time you are seeking a loan, especially a loan for a new home. Making transitions or climbing the corporate ladder to a preferred position is one thing, but leaving gaps in your work history will be seen as a risk factor when you apply.
2. Failure to Provide Proof of Employment – If you are employed and asked for proof, make sure you bring in just what is needed. Whether you need a statement from your employer, pay stubs, or last years tax return, willingly bring in whatever you are asked and make sure the appropriate information is reflected.
3. Poor Rental History – In some cases, moving around a lot is due to employment or family concerns. However, rental history that shows you have moved around a lot in the last several years can be frowned upon when you apply for a home loan. This may give the impression that you do not lead a stable life or you have a difficult time holding commitments on lease agreements.
4. Irrelevant References On Application – When the average home loan hits a whopping $280,000 or more, you better believe every little detail on your application should be relevant. This is especially true when it comes to any references that you jot down. From employment references to people who can attest you are an accountable person, make sure you pick the right individuals.
5. Asking for Too Much Funding – If you find a house that needs a bit of work, it is only logical that you will ask for more money to make repairs as this is what most prospective buyers will do. However, overshooting your estimates for repairs can look bad on a home loan application. The application will be carefully considered by people who are familiar with the associated costs of home repairs and will likely deny the loan.
For more information, contact MCS Bank or a similar location.Learn More