There is a problem with our banking system and conventional lenders. Sure enough, there is a lot of money in the banks, and there are many individuals and businesses that want to borrow this money for business growth or personal requirements. It might be easier for businesses, but how many individuals, a little short of cash, will get the money they need in an emergency?
It’s like being bullied at school for low grades. You don’t feel good when you are snubbed because you lack something, especially low credit score. This is why so many people in the United States are still outside the banking network.
Many Traditional Lenders Deny Small-Dollar Loans
Most traditional lenders will reject applications for short-term installment or payday loans, irrespective of how many times you visit the bank, or what you say and do to convince them. It simply doesn’t work. Then there are banks that won’t even accept applications for a small-dollar quick-cash loan, because the amount in question is too small for them. They are simply not interested.
But you don’t need $20,000. All that’s required is $1,000 or less, and no one can force you to take a larger loan and get into a debt trap for 20 years.
It’s time to get wise and act rationally if this situation sounds familiar to you. You cannot fight a bug bully. You have to act wisely to overcome a difficult situation. Do fight back, but you need the right strategy. This is how you can get a short-term installment loan when you are short of cash and need to survive till the next payday.
What to Do If Your Application for Installment or Payday Loan Is Denied
1. Schedule an appointment with the loan officer and ask for the specific reason why your loan application was rejected. Ask for the reason in writing. But often, you will not get a written statement. Ask the officer for suggestions on what you can do to improve your chances the next time you apply. You are likely to be in a better position once the issues are addressed.
2. It is entirely possible that you have a good credit record, but your loan was still denied. Show your record to the loan officer. Also, if you have a mortgage, and if you have been making payments regularly, then disclose the details to the officer. Alternatively, show your rent receipts, if you are living in a rented property. Show that you have been paying the rent consistently every month. The loan officer might reconsider if you can prove that you have been responsible in the way you manage money. Full disclosure might work in your favor.
3. One reason why conventional banks deny short-term loans is because of a poor credit score. Perhaps you had missed a couple of payments some time back. This is sure to affect your credit score negatively. But it is entirely possible that your financial situation has improved in the meantime, perhaps because of a job change, bonus, or an increment. But your better position will still not be reflected in your score because the credit bureaus tend to hold negatives for a long time. You can approach them for an updated score and even submit an application for a review with all documents. Your score can improve after verification.
4. There is another option for you. Find someone with a good credit record to support the loan application you are making. The person can be a friend, a family member, and even your spouse. Ask the person to stand as a guarantor. But always be sincere with the person. Tell your situation clearly to him or her. Show gratitude for the help you are receiving.
Approach an Alternative Lending Agency Instead
You may have to seek other alternative lenders if these measures don’t work.
1. Find a lending business that offers bad credit installment loan. Many would lose their nerve when faced with an emergency, and may end up signing for a loan without carrying out detailed research first. This can be a costly mistake.
Don’t be hasty. You will have to plan it correctly. Try to find a non-traditional lending agency that offers short-term installment loans to those with bad credit. A payday loan is another option. In this, you will get the money you need, but have to return it after the next payday. Both are good options.
An installment loan is typically within $2,500, while payday loans are for amounts of around $1000. Both these types of loans are disbursed quickly. There is no credit check as well, so you will be approved even with bad credit. Choose the kind of loan that suits you the best.
2. Dependability ad affordability – Compare to decide. But above everything else, you should be able to depend on the lending agency. Ask if you can get an extension if you are unable to return the money when it is due. There are many agencies that will give you this extension. Ask to verify the interest rate.
Finally, decide how quickly you want to pay it back to get out of debt. Payday loan might be the better option here, for two reasons. First, your debt burden is less, and second, the loan term too is less. So you will be debt free by the start of the next month. But take the installment loan if you think you need a bit more cash.
Ensure that all state and federal laws are being complied with. Read all the terms and conditions carefully before signing anything.
Payday lenders and other alternative lending agencies are offering a valuable service to people in distress, those who need money in real emergencies. Millions of Americans from all corners of the country are approaching these companies, including whites, blacks, Hispanics, and Asians.
A payday loan or small-dollar installment loan is in fact, often the only option for these people, because traditional lenders will deny them the money. Many of these individuals have poor credit. It’s a real problem.
Avoid Loan Sharks At Any Cost
Experts have said that these people, if denied, can end up approaching loan sharks and getting funds from the black market where they are charged steep interests that are completely illegal. This can cause a spiraling debt crisis, where the only option left is to file for bankruptcy. Avoid loan sharks, stay miles away from them if you do not want to get into a debt trap.
Seek financial assistance the legal way. Protect the system and your interest. If the bank turns you back, approach a payday lender for a quick-cash loan or an installment loan. Millions of Americans are coming back to these companies whenever they need some extra cash. Just pay back in time and there won’t be a problem. Discuss an extension if you need one. Lenders are willing to listen and accommodate you.
You can apply for a installment loan or a payday loan with us. Do not worry we adhere to all state laws and will not trouble you in any illegal way. Apply your loan in our site with confidence. Just scroll top of this page and you will see a form there. Apply, rest we will take care.