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Cash Loans for Bad Credit
Bad Credit seems to be an ever growing problem in the United States. Unfortunately, with the fragile economy credit scores will continue to drop as job loss continues and restrictions on lending to subprime customers has tightened and is virtually non existent. So what happens when you need a loan for emergencies? Unfortunately if you have bad credit it will be hard to get any loan but you may have luck with a small dollar short-term loan like a payday loan.
Cash loans for bad credit, is also referred to as a personal loan. Personal loans can be funded by a variety of different lenders but if you have bad credit, you will probably only be approved for cash loan by a subprime lender, like a payday lender.
When applying for a cash loan with bad credit, you will need a couple of pieces of information. First you will need a social security number (therefore you have to be a U.S. Citizen AND over the age of 18) You will also need to currently be employed and making over $750 a month. If you are applying online you will also need to provide your routing and bank account information as these lenders will be directly withdrawling the loan plus interest on your next payday.
Only use payday loans for emergencies and always pay them back on time, otherwise you could end up paying a lot in interest!
Financial Reform Main Street vs. Wall Street
Since the passage of the health care bill overhaul, the next thing on Congresses plate has been financial reform and overhaul. This Democratic-sponsored bill is in direct response to the government’s use of bailing out large “Wall Street” players in the Mortgage crisis bank downfall of 2009.
Many of these large financial institutions gambled and bet on sub prime mortgages causing inflation in the housing markets and the collapse of the “American Dream.” People were so eager to buy homes, and Wall Street was so greedy to make money that investors lost sight of what a “good” investment was. They bet on bad credit mortgages mixed with high interest-only loan which only lead to payment defaults, foreclosures and price/equity drops.
Another large player in the economic crisis of 2009 was the American auto companies, losing out on profits to more efficient, higher-demanded European, Japanese and other automakers.
When the government bailed out all of these large businesses with tax payer’s dollars, everyone bi-partisian agreed it had to happen to prevent a financial meltdown but most agree this was not a “good use” or even “legal use” of the American taxpayers dollars. Private industries WANTED and still want to remain private and separate from the government yet when they needed bailout funds most were all too willing to take their “handout”
So what happened on main street? People lost jobs, homes, belongings, health benefits and other items, including for some the chance to ever own a home again, the chance to ever achieve that American dream.
So what happened to Wall Street? Well profits definitely dropped, investors lost gains but in the end MOST of these financial institutions AND auto dealers got to keep their businesses going as they were deemed “too big too fail”.
So what now? Congress is currently under going financial reform policy which will hopefully prevent this kind of “reckless” spending from Wall Street to ever happen again. They are currently trying to set up rules and agencies that will monitor these companies in an effort to hopefully keep investors on the straight and narrow. Investors and many large financial companies have publicly come out against any Federal regulation within the financial industry but the message from Congress is, “You don’t get a choice” Over the next few months, the House and the Senate will fight out the exact language and amendments included in the bill but hopefully it will end as a win for main street. After all they are the ones who truly lost in this battle on Wall Street.
Bad credit doesn’t equal no loan
It use to be that to get a loan, a line of credit or a mortgage you had to have good to excellent credit. However, due to the banking ad mortgage crisis of 2009, it seems that the prime market has shrunk while the subprime loan market has grown. But traditional lending institutions have yet to change their lending model, leaving a lot of their former customers up a creek without a paddle. But good news, lenders are being to notice this large pool of subprime customers and are currently creating loans that are NOT just granted on traditional credit score basis. Below are types of loans that are offered to people with bad credit. Please click on a term to read more about the loan type
While yes, you will be paying more most likely in interest because of your not-so-perfect credit history, at least you can still access the funds when you need them the most. Remember to always exercise caution when taking out any loan and take care of any inaccuracy’s on your credit report today. Get a free copy of your credit report now
Military Payday Loans
If you are not familiar with payday loan laws, you may not know that the cap on lending to military personnel is limited to 36% APR, that means that no one can loan to anybody in the active military, reserves, is the spouse or the dependent, if the loan interest is higher than 36% APR. That means that loan can never gain more interest for its annual duration above 36%.
Since payday loan lenders make money based on the high-interest rate on short-term loans, this is not a profitable group to extend loans to for the most part. While 36% APR may seem like a lot, you have to understand that about 60% of people who take payday loans don’t pay them back. This is the MAIN reason why payday lenders charge so much in interest for their payday loans.
For example if you took out a $500 payday loan, on average you would be paying $125 interest on that loan in two weeks, so you would pay back $625. Now this is just below the mark for the APR as this is a 25% interest rate but you need to understand it is a 25% interest rate for TWO-WEEK loan, what happened if they can’t pay the loan back on time? The lender can only charge $55 in late payments, fees or interest before they hit the max 36% APR cap for the YEAR. This is not enough revenue to create a profitable business therefore due to the cap on military lending or military payday loans, most payday loan lenders no longer lend to military or their families.