Cash loans are commonly called as payday loans. This is a small loan to help tide over the borrower until their next payday. The term is short in nature and usually not used to make large purchases. The main reasons people avail a cash loan is to stretch their buying power and help cover unplanned expenses.
There are not may stringent rules to qualify for a cash loan. A small convenience fee may apply. The original amount borrowed along with this fee has to be paid back on your next payday. Different states have a different law pertaining to payday loans. Before choosing the loan best for you, go online and learn about your state’s laws. If your state government prohibits cash loans, then the best thing to do is to look for another alternative.
Eligibility:
Be a US citizen or permanent resident
Be at least 18 years of age
Have a US bank account
Provide proof of income, such as recent pay stub
Have a valid email address
Provide work and home phone numbers
As opposed to a traditional bank loan, a cash loan has a swift approval process. Most lenders offering payday loans do so online, thus there’s no need to step outside the house to procure a loan, the approved money gets directly deposited to your bank account.
Potential pitfalls and how to avoid
Cash loans have higher interest rates than traditional loans. So avail a cash loan only during dire emergencies, otherwise, you might be stuck with additional debt if you are unable to pay back in time.
Never request for more money than you need or have the ability to pay back, so as to avoid your financial strain.
Avoid frivolous spending of the money, use the money towards important matters such as medical bills.
The APR for your cash loan is dependent on duration of the loan, loan fees incurred, late payment fees, non-payment fees, loan renewal actions and other aspects.
To protect your privacy, ensure that the data provided by you is safe
To avoid renewing your cash loan, contact the lender and notify difficulty in repayment.
Repayment of the loan within the agreed term boosts your credit score. At the same time, failure to do so, your credit score is damaged.
Many borrowers applying for a cash loan may already have poor credit scores. Carefully planning your loan expenses may provide you with an opportunity to improve your credit score. Be aware of the pros and cons and use cash loans as a tool to positively impact your financial situation.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.