Payday loans are basically short term loans where the lender gives a small amount to the borrower at higher interest rates than conventional loans. The repayment of a payday loan is done when the borrower receives their next paycheque. There could be many reasons why a person would want to take a payday loan, the most common of which is emergency expenses.
Lenders will ask for your credit score to determine whether you can afford to pay the loan with the next paycheque. While most lenders will require you to meet the minimum credit score, there are a few lenders who may offer payday loans to people with bad credit. In such cases though, you will most likely bear higher interest rates. Let’s first see the reasons for which people should take payday loans and what role credit plays in the loan approval.
Reasons to Take Payday Loans
The concept of a payday loan is ideally, to cover costs that require your immediate attention when you don’t have enough money at hand. Clearing medical bills, getting your car repaired, and getting one of the home systems fixed that needs immediate repair are some of the genuine cases where payday loans can be acquired.
Basically, what a payday loan does is that it helps you address your immediate financial needs until you receive your next paycheque. It is important to understand that payday loans have been created to provide short term financial support, only when you are in need. So when you repay the loan, for instance, next month, your financial position will improve. Once a payday loan has been approved, you will receive it within 1 hour or 24 to 48 hours.
Your credit score does play an important role in the approval of a payday loan. Generally, people having average to good credit score will be able to quickly acquire payday loans. Lenders will generally ask for details from you, which include:
- Copy of current and past paycheque
- Bank statement
- Credit score
By providing a copy of your current paycheque, you inform the lender that you can afford to repay the loan and that it matches the amount you want to borrow. However, if your current paycheque does not match the funds that you want to borrow, then you will have to settle for a lesser amount along with higher interest rates.
The one question that many borrowers have is: How much does a payday loan impact the credit score? The answer to this is that if you repay the loan in full and on time, then it will actually have a positive impact on your credit score. So the next time you want to acquire a payday loan or a mortgage, the lenders will look into your credit report and will be satisfied that you have responsibly cleared your loan. But it will adversely affect the score if you are delaying payments. In conclusion, if you decide to take a payday loan, know that it won’t impact your credit score only if you clear it on time.
Do you qualify to reclaim a mis-sold payday loan? If you think lenders may have mis-sold the short-term loan, you can file a complaint against them, asking for a refund. Before you can take any action against the lenders, you need to find out if you qualify for a payday loan refund first. To find out if you are eligible for a payday loan refund, refer to the following reasons to find out what your reason is to file one:
· Recurring Payments
You may repayments via a continuous payment authority (CPA). CPA gives the lender permission to take out money from your bank account. The lender needs to explain the process of repayments and how they will be made to the borrower at the time of taking out a loan.
Additionally, before taking out money from your bank account, they need to inform you in advance. What some lenders end up doing is that they attempt to take out money from your bank account throughout the day, if it is not available. This results in large incur charges.
· Current Financial Situation
Payday lenders have a responsibility not to hand out loans to people who do not have the financial means to repay them. However, payday lenders tend to ignore investigating the borrower’s history prior to giving them a loan.
Some of the factors they should consider, but don’t include credit history, age, income, employment status, mental health, identity, and outgoings. You can ask for a refund if they did not tell you in detail about the repayment process and on how this is not a long-term answer to their problems.
· Fraudulent Loans
Lenders need to confirm the identity of customers before approving their loan application. However, some lenders forgo this step, leading them to harass people who have not even taken out a loan. If you have been receiving calls from lenders, regarding a loan you never took out, you can call them up to explain the confusion. If they persist to harass you, you can complain to the Financial Ombudsman Service.
· Repayment Difficulties
If you are having difficulty paying back your payday loan, the lender should suggest other ways you can repay it. You can also suggest another repayment plan. If you come up with a plan, they need to stop increasing your interest charges and payments. The lender should also direct you to a source where you can obtain debt advice instead of forcing you to extend your loan repayment plan without telling you about the related risks if you are unable to repay.
Did you find your reason to ask for a payday loan refund? If you found one or more reasons to ask for a refund, you need to file a complaint against your lender. If they do not get back to you within eight weeks, contact the Financial Ombudsman. You can contact them via phone or submit an application, detailing your reason for asking for a payday loan repayment.
It’s everybody’s dream to have their own car to drive around. Irrespective of the quality of a public transportation system in the area, having your own car can solve a number of different problems. With your own car, you can move around, buy, sell and rent your car as you wish. Unfortunately, not everyone has the requisite finances to buy a vehicle; instead most people opt for an auto finance to buy their prized car.
If you are going for auto finance option to purchase your vehicle, there are certain things that you need to make sure of. This article outlines an auto finance checklist.
Proof of Address
When you are filling in your details for an auto finance application, you need to make sure that you have a tangible proof of address. The lender will always want to double check where you live and simply giving them an identification document that outlines your permanent address is not enough. A utility bill that you have recently paid can act as a tangible proof of your current address.
Emergency Contact Information
This is not to make sure that you are safe and sound and that if anything was to happen to you, your emergency contact can be contacted to notify about your state. When a lender asks you for your emergency contact information, they are basically asking you to outline a person who they can contact in case you go AWOL and miss your payment schedule. Remember to update your emergency contact information if the person changes address or phone number.
Information about the Car Insurance
When you are auto financing your vehicle, you are basically asking the lender to buy a car for you and you are paying them back on monthly instalments to use that car and to take ownership of the car at the end of the loan repayment. Any lender who is looking to buy a car for you will want assurances and protection of their investment and car insurance is one way of doing that. Lenders give you chance to get a car insurance as you see fit, if you can’t they will do it themselves and send you the bill.
Information of the Seller
The lender is essentially the buyer of the vehicle until and unless you have made your payments and you have completely repaid the loan. Hence, as a buyer, before they approve your auto finance request they will need to ask you for all the information about the seller. Ideally, they will contact the seller and look at their credentials before agreeing to lend you the money.
Specifics about the Car
Again, this is simple and understood. You cannot expect a lender to approve a loan application before they know all about the vehicle. Once you have gotten a pre approval for an auto-finance from the lending agency, you will be required to outline the specifics about the car, the model, the make, etc. for the car.
These are some of the things that you need to take into account when getting auto finance.
At Everyone Counts, teaching young ones is our passion. Receiving a proper education at a young age is critical to a person’s development. Between the ages of five and fifteen, the human brain is most receptive to learning new things. It is also more able to retain life skills learned at this age, which is why proper development at this stage is so very important. Most of us take for granted our early-years education as the benefits it provides us with often go unnoticed. As adults, we enjoy reading books, we are able to understand signs and we’re able to communicate verbally and through writing without an issue. However, for an increasing number of adults, the same cannot be said.
Illiteracy and deficient numerical skills are increasing among adults. This is having an increasingly adverse effect on our communities, resulting in increased crime. You’d be forgiven for not seeing the correlation between a poor to non-existent education and crime… so let us explain: People who fail to acquire at least a base set of reading, writing, and numeracy skills are 98 percent less likely to gain employment than their better-educated counter parts. Without full-time employment, individuals struggle to earn a legitimate income. This often results in young adults turning to crime and in some areas gangs form and it is clear that its growth is being exacerbated by a lack of opportunity, which is the direct result of a lack of employable skills, which is attributable to a poor education.
This is where we come in. We work with children and young adults to fill the gaps in their knowledge and/or working experience. We are more than just a school, our staff go out to deprived areas; they are on the ground meeting and working with the young people who need us most. Our courses are specifically designed for all levels and we provide a complete end-to-end curriculum. In addition to this, we partner with more than 300 potential employers in 30 different cities. Our graduates are vetted and approved to apply for a job with our partners once they have finished their training.
We’re trying to do more than just educate young people–we’re working to change peoples’ lives for the better. If you think you have the skills to help us achieve this goal and/or you know of someone or some people that could benefit from our services, then get in touch.