Say NO to Same Day Loans
If you’re in a situation where you need cash fast it can often be tempting to go to one of the thousands of same day loan places out there. These places are great at getting borrowers to sign on for loans without considering the rate of the loan, how the loan is going to affect their credit, and most importantly how long the borrowers are going to be stuck with those payments. Rate, Credit and Exit Strategy are the topics of the following series of videos aimed at better preparing you to go out and look for a loan that actually helps YOU.
Rate is what everyone looks at first when they are searching for a loan. Unfortunately, when time is a factor it can be challenging to look at the fine print to really get an understanding of what your rate is. Often times these Same Day Loan companies advertise a rate that doesn’t disclose the full picture. Things like your amortization, set up fees, discharge costs all affect the final APR (Annual Percentage Rate) which is the TRUE cost of your loan and can be as high as 50%. Can you imagine if they advertised a loan at 50% APR?!
Your credit is one of those things you are definitely not thinking about when you are in a tight spot. It’s something that we convince ourselves we can worry about later. It’s fair, you have bigger things to think about right now. But what if you knew that you could get a loan while simultaneously building your credit? I mean that seems like the obvious answer right?
It’s the obvious answer.
You should WANT to look at your credit after taking out a loan…not be afraid to! It can be so rewarding, especially for people who started off in a vulnerable financial position, to get to a place where they can see their credit building. It doesn’t matter where you start, it can be a lot of fun to see the progress month after month.
3. Exit Strategy
An exit strategy is maybe the most important component when setting up alternative financing. As a mortgage agent, working within a reputable brokerage, it is a MUST. We are required to show our lenders exactly how we plan to move you out of this loan and into a better financial position. The biggest problem with a “same day loan” actually is not the rate. It’s the fact that people have no way to pay off these loans and are stuck making the payments until their saving are drained.
How to avoid getting a same day loan when you need money FAST
The most important take away here should be that a same day loan is almost never going to improve your financial situation. If you own your home a mortgage broker can get you set up with a loan that protects your interest in as little as 48hours.