Payday is one exciting day that almost every employee looks forward to. Finally, getting rewarded for working extra hard each week is worth every drop of sweat or sometimes, tears. But has anyone ever had that giddy feeling that’s quickly replaced by great disappointment upon receiving their salary? It’s not a very pleasant feeling, because most of the time, the pay is not sufficient to make ends meet.
Average Everyday Struggles
Having enough money in the pocket to fund and support daily needs is a struggle that most people experience every day. With food supplies, household items, and endless monthly bills, some individuals even resort to getting one or two more jobs to sustain their needs.
But apart from getting additional work, some are left with no other alternative but to run to banks for financial assistance like loans. Some people are afraid of going to banks for help, and they have enough reason to be.
Speaking to a person who has direct influence on the approval or denial of one’s plea for financial assistance could be both scary and intimidating.
Which is Better: Payday Cash Advances or Bank Loans?
Several banks offer a responsible installment loan. These types of loans provide different payment terms and schemes to make it easier for people to pay off their debt or other financial responsibilities.
Not everyone may know this, but loaning money from credit card companies is a lot more expensive than acquiring it from the big banks because credit card companies who offer cash loans charge higher interest rates than banks would. These rates are almost the same with cash advances or payday loans.
Getting a responsible installment loan that is being offered by most banks is much better than any loans available because one, it has much lower interest rates and two, banks have more flexible terms for payment.
Another good reason to ask for monetary assistance from banks than any other financial institution is that banks can provide more time when finishing off loans.
About Personal Loans
A personal loan is the same as what it says: a cash loan that’s mainly for personal use. There are two general types of personal loans, secured and unsecured. A secured loan is one where a bank would require collateral before a loan can be approved, whereas an unsecured loan does not. Since unsecured loans do not involve collateral such as jewelry, a car, or house, the bank would incur higher interest rates in exchange.
There are several factors that lenders think about when approving loans. One is the overall income of the person requesting for a loan, because this will be the basis of the loan amount that can be offered. The second factor, which is also of great importance, is employment history. Banks or lenders need to make sure that the person asking for assistance has a stable flow of cash. Lastly, banks will closely look at credit history or credit score.
What’s the Real Score?
Credit history is essential when applying for cash loans; it’s the first thing that almost every bank or every institution that offers cash assistance look. A person’s credit information is the basis of whether or not their request can be approved. This information is kept on various databases, and it is calculated based on four significant aspects: an individual’s payment history, the amount of credit acquired, how long it took to pay it, and if there are ongoing loans.
Keeping a good credit score is crucial for everyone because it can have a positive or negative effect on any transaction that involves money – postpaid phone plans, car purchases, or housing loans.
Seeking assistance is one thing that some people are ashamed of doing, but it’s truly not that bad. One only has to know who to ask help from and remember to keep a promise to ensure that the trust earned does not go to waste.