Non-traditional lenders, such as Maxlend Loans, offer people fast cash with minimal requirements. Loans can be applied for in person or online, and approvals take only a matter of minutes. These loans are accompanied by high interest rates, short term limits, and stiff penalties for late or partial payments. They are to be considered a last resort for money after all other avenues have failed.
How to Avoid Applying
Proper money management is the key to avoiding the need for a fast cash loan. A savings account for emergencies, following a budget, and reducing impulse spending are a few examples of management skills. In this culture of entitlement, credit cards, and living beyond means, these skills are not taught or encouraged. Consult a credit counseling service to gain these skills and to gain control over debts.
Work with utility companies to set up a payment plan to take care of a past due balance while keeping bills up to date. These companies do not want to shut off your utilities, they want to keep customers who will pay their bills. This is why most offer year-round budget plans to spread out payments.
Cut up all but one credit card and save to pay cash for items desired. This will be difficult at first, but the long-term money savings will be worth the struggle. Pay as much above the minimum payment as possible to lower the principle and the interest rate on all current balances. The card kept needs to be used only for emergencies.
When Those Methods Fail
People who will not qualify for a bank or credit union loan may have no choice but to apply for a high-interest loan. Be careful to apply for only what is needed. It will be tempting to borrow the full amount allowed, but the interest rate will add to the payments. Make payments on time and in full to avoid penalties.
Follow these tips and the experience will be a successful one. There are borrowers who use non-traditional lenders occasionally and have no issues with added costs. Compare interest rates because those will vary from lender to lender.