PAYDAYCASHADVANCE

Finding a financial resource to meet
immediate needs will never be a hassle.

Top 5 Things that Can Ruin Your Credit Report

Posted on by
Reply

A credit report is a very important document. It is considered the most credible document that depicts the status of your financial stability. Your employers, lenders, and anyone else, with whom you are dealing, uses your credit report in determining how creditworthy you are.

A credit report is also useful for consumers in determining their credit score. The report helps them assess their financial status and how they may respond to offers of new lines of credit. If their credit report is good, then consumers can be confident that they can apply and qualify for loans, such as payday cash advances, that have some very good deals. But if the credit report shows the opposite, then they have to be very careful when dealing with lenders in order not to be taken advantage of.

If you have a good credit report, many lenders will work with you. Lenders will offer you good deals and rates. Employers will readily hire you. Banks will give you better loans with favorable terms. Hence, a good credit report opens greater doors of opportunities to consumers.

It is therefore important to get rid of things that can ruin your credit report. What are they? Here are some of them:

·    Charged-Off and Noncollectable Status

When you have stop paying your loans, such as payday cash advances, and other credit accounts for more than 6 months, you are given by your lender an uncollectible status. This will be reflected on your credit report as a charged-off account and will remain on the report for approximately 7 years. Resulting in 7 years of difficulty getting approved on loan applications, and worse, employment.

So, it is important that you make timely payments. In the case of defaults, do not leave it unpaid, but find ways to negotiate with your lender. Therefore, it is necessary to borrow only an amount you can readily afford to repay in order to avoid payment default complications which may ruin your credit rating.

·    Unpaid Accounts Turned over to Collection Agencies

When creditors are unable to collect the money you owe them, they usually hire collection agencies to collect your payment and totally turn your account over to them. The problem with collection agencies is that they can contact the 3 main credit bureaus and place an “in collection” status on your credit report. If this happens, there will be a negative impact on your credit report and the depressing consequences that follow.

·    Judgments or Lawsuits Filed Against a Consumer

If a consumer fails to pay or settle his account with his creditor, the latter can file a lawsuit against the former after all means of trying to collect has been done. If there is a judgment, this will be reflected on your credit report and will remain there for 7 long years starting on the date when the lawsuit was filed. As mentioned, this will create complications on business deals, loan applications, and even employment.

·    Non-payment of Tax Liens and Foreclosure

Non-payment of tax liens will produce a negative impact on your credit report. Entries of unpaid taxes remain in your credit report for 15 years. In addition, if you are unable to pay the taxes, your property,  will be seized by the government and put in foreclosure. Defaults on mortgage loans can severely damage your credit score.

·    Filing of Bankruptcy

Filing  bankruptcy can have a negative impact on your credit report and will be noted on it for the next 7 years. Usually, a bankruptcy entry on your credit report will reduce your chances of getting good deals on loans, although payday advance lenders will still work with you.

Protect your credit report from these terrible things by being credit worthy.

Facts about Collection Laws concerning Payday Cash Advance Loans

Posted on by
Reply

Payday cash advance loans are popular with US payday loan consumers because these loans provide very easy and convenient access to instant cash. Employed people who have limited income and often find themselves in deep financial trouble turn to these payday cash advance loans.

Payday cash advance loans have become the best option for people with bad credit or poor credit histories because they can easily qualify for them. There are no credit checks performed. The approval and the processing of the loan is quick which makes many consumers tempted to borrow and re-loan.

However, payday cash advance loans are short-term loans only. They must be repaid with the next paycheck you receive. They also come with high interest rates due to the high risk lenders take for these unsecured loans. If a consumer fails to pay the loan, lenders charge additional fees sometimes making the loan difficult to repay.

Usually, lenders become very aggressive in terms of payment collection. Some may even threaten or harass defaulting consumers. They threaten consumers with jail time if they are unable to repay their loan. Although consumers are obliged to face their responsibilities, lenders have no right to force or threaten them. In response to alarming collecting activities of some lenders, the government has imposed Collection Laws that will serve as a guidelines of what lenders must legally do to collect.

Consumers should be advised that non-payment of payday cash advance loans is not a criminal offense, except when fraud is committed. A lender can never file a criminal lawsuit against you, only a civil lawsuit. If you are negligence repaying your loan, your lender can demand payment collection by filing a civil lawsuit. Punishment for such civil lawsuits does not include jail imprisonment. The court can force you to file bankruptcy, which stays on your credit report for up to 7 years, garnish wages and certain assets, or require you to undergo a debt consolidation plan.

If lenders file a lawsuit that is not valid, you can, in turn, file a lawsuit against them if they harass or threaten you. Under the Collection Law or the Fair Debt Collection Practices Act, these are the collection activities that are considered as harassment to a consumer:

·    Annoying Phone Calls

These are not just phone calls for the payment collection, but unreasonable phone calls that may happen at dawn or late at night. The law states that phone calls for payment collection must be only between 9am and 8pm. Also, lenders can only make two to three calls per day. You can report them to the authorities if they are using abusive language over the phone. Record the call so you will have evidence.

In order to stop them from calling you, you can send them a letter and request that they not call you.

·    Contacting You At the Office

When lenders start calling you on your work phone for payment collection, this is harassment. They are not supposed to be doing so because they are breaching your privacy and confidentiality. You may write a letter of request to them to stop calling you at work. If they fail to honor such written requests, then you can report them to authorities.

                                              ·    Making False Threats

Desperate to get their money back, lenders will frighten their consumers using false threats, such as filing a criminal case or putting them in jail. As mentioned earlier, non-payment of payday cash advance loans is not a criminal offense and cannot put you in jail, except when a criminal law is violated.

·    Using the Same Bounced Check For Collections

The bounced check you already issued to your lender should not be used for payment collection. If the lender does this, it is considered financial harassment.

If lenders use extreme and harassing collection activities, you can file a complaint against them for violating the collection laws as imposed by the Fair Debt Collection Practices Act. As a consumer, be familiar with these laws so that you will not be the victim of abusive collection activities of some lenders.

Differences between Bank Loans and Payday Cash Advance Loans

Posted on by
Reply

The financial difficulties that most people experience today have led them to use credit. There has been an overwhelming propagation of credit options, such as credit cards, mortgage loans, and personal loans. Among the credit options available, personal loans have been the most popular. Personal loans are offered by both banks and payday lenders.

Personal bank loans and payday cash advance loans are both helpful in terms of providing needed cash for people. However, they differ in some aspects depending on the needs and urgency of the loan. Understanding each of their differences is important to make an informed decision before applying for any loan.

In order to help you decide which among bank loans and payday cash advance loans is suitable for your needs; here is an outline of the differences of the two credit options:

Bank Loans

Loan Term: With a bank loan, you do not need to repay the loan all at once. It can be paid in small payments over the course of several years, usually from 1-3 years, depending on the bank or the loan amount.

Loan Amount: Most bank loans are secured, that is collateral is required. Because of this, the loan amount can exceed $1000 and can be used to finance cars, houses, and a new business.

Loan Application: Bank loans take time approving loan applications. Oftentimes they require extensive and long approval process requirements so they are not really timely when you need immediate cash.

Interest Rates: Most bank loans have low interest rates. But, you still end up getting expensive rates because you will be paying for longer terms.

Requirements and Qualifications: In order to qualify for a bank loan, you must present a substantial and credit worthy credit report. Other requirements include: Pay stubs (proof of income), Social security number, Birth Certificate, Employment information, Bank statements, Federal tax returns.

Payday Cash Advance Loans

Loan Term: Generally, payday cash advance loans are short-term loans. You will need to repay the loan in full after two to four weeks, usually every payday. You are required to write a post-dated check that will be withdrawn from you bank account by the lender when the loan is due. Repayment extensions and rollovers are offered but with additional charges.

Loan Amount: Unlike bank loans, payday cash advance loans are unsecured, only a postdated check and the promise to repay the lender is required. The maximum amount for this type of loan is $1000 and will depend on the net monthly income of the borrower. So, payday cash advance loans are specifically designed only for immediate needs.

Loan Application: Contrary to the lengthy process of bank loan applications, payday cash advance loans offer more convenient and quicker approvals. In less than 24 hours you get the cash you need. Also, you can apply for payday cash advance loans 24 hours a day, 7 days a week. Most of all, you can apply online so you don’t need to go to the store and submit a bunch of paperwork. These loans offer the timeliest solution to urgent cash needs.

Interest Rates: Since payday cash advance loans are unsecured and no credit check is performed, they have expensive interest rates. Because the term of the loan is only short and the lenders are at high-risk, the interest will naturally be high. However, most lenders argue that overdraft fees and late charges by other lending institutions are more expensive than the interest rates on payday cash advance loans.

Requirements and Qualifications: It is very easy to qualify for payday cash advance loans. Even if you have a poor credit score and have filed for bankruptcy, you can still qualify. As long as the borrower can provide a proof of stable income, they can apply for the loan. In addition, a valid bank account, current home address and phone number are also required for the approval of the loan.

These are some of the general differences between a bank loan and a payday cash advance loan. Learn more about these loans before applying to be able to choose wisely.

How to Manage Payday Cash Advances

Posted on by
Reply

Many are struggling financially today and the most viable option they can depend on is to get payday cash advances. Even the most frugal person needs to have good credit in order meet daily needs. Now, with payday cash advances, you can obtain credit and get the cash you need.

The usefulness of payday cash advances is made more convenient because you now apply online and have fewer requirements. Lenders in this business have welcomed all types of borrowers with good, bad, and poor credit scores. Because of this, many have taken advantage of this line of credit.

The problem happens when borrowers are unable to pay the loan due to high interest rates and the very short terms. Because of this, many of those borrowers who are not able to manage their loan wisely have gotten themselves into trouble.

It is very important that borrowers know how to manage their payday cash advances wisely.  Knowing how to control your expenses and practicing self-discipline will help borrowers enjoy the benefits of payday cash advances and avoid credit problems in the future.

Here are some things to keep in mind to help you manage your payday cash advances:

1.    Avoid loan extensions.

This is said to be the most common mistake of many borrowers. Although loan extensions can be helpful, they will only accumulate your debt and make the loan more expensive. Remember that the longer the term of the loan, the longer time it will take you to pay off your loan. Loan extensions should only be chosen wisely and only when there is no other option left for the repayment of the loan.

2.    Do not use the money you will get from your payday cash advance for huge financial expenses.

This means allocating the money for short-term purposes, such as paying past overdue bills,  household repairs or even paying for medical bills. Borrowers of payday cash advances are advised to use this line of credit for their immediate needs and not for long-term needs because these types of loans must be repaid on their next payday.

3.    Carefully read the fine print associated with the loan and understand completely the loan terms and conditions.

Don’t be a borrower who becomes overexcited when you fail to read the important specific details of the loan. Being caught unaware can make you a victim of hidden costs and charges. Fortunately, most of the state laws that regulate the payday cash advance industry require all lenders to be transparent about their loan terms and are able to explain to their borrowers all the fine details associated with the loan.

4.    Avoid “too good to be true” deals.

This may be a scam or may have a hidden agenda against you. So, shop around and search for better deals from various lenders online. Do not just settle for one lender but have a list of lenders that you are interested in doing business with. Compare their offers and choose the one that suits your needs and capacity to pay.

When you take out a payday cash advance or any line of credit, it is important that you use the funds responsibly.

How to Deal With Payday Cash Advance Collectors

Posted on by
Reply

Payday cash advances are good sources of instant cash in times of immediate need. They are easy to apply for and have quick loan approvals and processing services. However, they are short-term loans so they must only be used for emergencies and short-term financing needs. Also, payday cash advances are unsecured loans so they have higher interest rates and costs compared to loans secured with collateral.

Many borrowers of payday cash advances make late payments or even defaults. This makes the loan become more expensive since additional charges are accrued. Also, long overdue and unpaid loans are turned over to debt collectors. This is where your trouble begins because these collectors will call you anytime and anywhere.

There are many ways to deal smoothly with your debt collector. You don’t need to run away from them or hide from them because that won’t solve the problem, only worsen it. Here are some helpful tips that will enable you to deal with your payday cash advance collector effectively:

1.    Don’t close your lines of communication with your payday cash advance collector.

Doing so will not be advisable. You will still get unsolicited calls and collection notices about your unpaid loan. If you are working with your lender, you can pay off your loan smoothly without getting in too much trouble. Also, the longer you spend trying to escape from your unpaid loan, the greater will be the chances of your account being turned over to a collection agency.

2.    Try to set up a repayment plan and propose this to your debt collector.

You may include in your proposal ways you intend to cope with your unpaid loans through small but continuous payments. Most lenders will be glad to work with you because they know that you have the intention to pay for the unpaid loan. In addition, make a tangible proposal that will assure your collector that you will be paying for your unpaid loan just as you promised.

3.    Always remember to stick with your deal with your collector.

Lenders are more than willing to offer you good deals as long as they see that you are making an effort to pay your unpaid loan. Once you plan is accepted, they will stop making annoying phone calls and sending bunch of collection letters.

4.    Consider getting debt consolidation loans.

Although this may not be very ideal since you will still be unable to get out of debt, this may be the only means to help you pay off your unpaid loans easier and more conveniently. Try to talk with a debt consolidation company because they can advise you about what you should do. They help you consolidate all your unpaid payday cash advances so that you will have only one payment per month instead of many. Also, debt consolidation companies can stop your collectors from calling you.

5.    Most importantly, know your rights concerning unpaid loans.

Each state has different laws for regulating payday cash advances and dealing with collection calls. There are states that do not allow collectors to make calls at a certain time of the day. There are also provisions when collectors can sue you. Here are some illegal collection practices you need to be aware of:

·    Payday cash advance debts are civil debts and collectors cannot file check fraud charges against you if the check bounces on the designated day of repayment. Also, the Fair Debt Collection Practices Act prohibits loan collectors from threatening you.

·    Loan collectors can only call you between 8:00 a.m. and 9:00 p.m. and may not call you during holidays or when their office is closed.

·    Once you have filed for bankruptcy, a collector must stop collection activities.

·    Loan collectors are not allowed to give information about the debt to a debtor’s employer, relatives or anyone that is not involved in the debt.

·    The Federal Truth in Lending Act does not allow loan collectors to charge fees more than what has been listed on the fees written in the original loan agreement.

You need to deal with your payday cash advance collector to settle your unpaid loans and prevent negative items from appearing on your credit report in the future.

Senate Bill to Address Problems with Payday Cash Advances

Posted on by
Reply

In times of urgent financial needs, consumers can count on payday cash advances to help them through. These are small short-term loans with quick loan processing and instant approval. Borrowers are able to get cash instantly by submitting a post-dated check that will be due on his next payday. The lender will hold the check and deposit it on the borrower’s next payday.

However, since payday cash advances are considered unsecured loans (no valuable collateral is at stake) these loans come with high interest rates, approximately $17.50 for every $100 borrowed. Static’s reveal that the interest rates for a week on payday cash advances is up 911%, 456% for loans due in two weeks, and 212% for those due in a month.

The Consumer Federation of America and the National Consumer Law Center, together with Senator Don Perata, have sponsored Senate Bill 834 that will protect consumers by creating reasonable oversights on the payday cash advance loan industry. The Bill aims to address some of the most common problems encountered by consumers with payday cash advances. They are the following:

1.    Payday cash advances have become a trap and not as beneficial as the industry originally claimed.

Instead of helping their consumers get out of debt they end up getting more trapped in debt. This is mainly due to the high interest rates associated with these loans that makes it difficult for many borrowers to repay them. If these consumers fail to pay the loan, most lenders offer loan extensions and roll-overs with, of course, additional fees and charges. So, many consumers end up paying for more than they originally borrowed.

According to a Wall Street analyst who have been carefully observing the lending practices of short-term loans, such as payday cash advances, the average consumer makes 11 transactions a year. This implies that many consumers become bound to these loans.

But, lenders still claim that they are the most affordable option left for needy consumers because they can get instant cash with no hassle unlike other financial institutions. So, payday cash advances have become the priority financial resource for these people.

2.    The rates and costs of payday cash advances are expensive.

Unsecured loans, such as payday cash advance, claim that their expensive rates and costs are due to the high risk taken by lenders. In fact, in Colorado, payday lenders charge 3% of their approved loans with an average APR of 485.26%.  However, California banks charge 2.7% on credit card debt with an APR of only 15-22%. This shows that payday cash advance loans do have high fees and SB 834 addresses this issue.

3.    There are lenders that are unregulated in some states that have been taking advantage of the ability to charge excessive fees.

Regulating the industry will be a big help to minimize usurious practices of some lenders that have been taking advantage of the consumers financial woes.

4.    Many consumers are easily misled by the attractive offers of payday cash advances.
The attractiveness of getting instant cash in the most convenient way is what makes many consumers get payday cash advances. Also, those who have poor credit histories are easily deceived.

In response to these problems, Senate Bill 834 has the following solutions:

1.    Reduction of the allowable fee for payday cash advances loans. The allowed charges would be $5 as a “set-up” fee, plus a maximum interest rate of 36% per year (or 3% per month or 1.5% for 2 weeks).

2.    Greater disclosure and other consumer protections:

a)    Rollovers: There are more stringent provisions against “rollover” or extensions of the original loan. For example, a lender may not offer a second loan until the consumer loan payment lapses behind 30 days. If the lender does grant an extension, they cannot impose extra charges or fees.

b)    Disclosures: Lenders are required to give notice to borrowers for any prosecution they will be facing due to a bad check for repayment of the loan.

c)    Penalties for violations: The bill enables consumers the ability to recover up to $2,000 when violations have incurred by his lender, whether actual or penal damage.

3.    Strict regulations on (a) Licensing and bonding, (b) Record-keeping, (c) Reporting the APR and length of loans.

This bill, if passed, will be a big help in making changes in the lending practices of payday cash advances.

Tips for Quick Loan Approval

Posted on by
Reply

In times of financial emergencies, most people turn to payday cash advance loans. Online lenders of these loans assure their consumers that they will get the cash they need quickly. It is not difficult to apply because of the use of online applications. Even in the comfort of your home, any time of the day, you can apply for these loans.

The problem comes during loan decisions. Lenders do not always give quick loan approvals, especially for those with very poor credit histories. Although a bad credit history is not the sole factor that will influence approval of your online application, it can affect quick loan approvals. Your information and documents submitted will still undergo a careful verification process to fully assess your capability to pay for the payday cash advance loan.

Most loan decisions of online lenders for your online application won’t take much time. Most of them will not want you to wait for hours or days. However, if your situation gets worse and you urgently need immediate cash, delays and refusals will only add to your financial dilemma. In order to ensure quick loan approval on your online application for a payday cash advance, here are some helpful tips:

1.    Apply for payday cash advance loans one at a time. Every time you apply for a loan, it will reflect on your credit report. Lenders will assume that you are in great financial difficulty because you have been applying for loans everywhere. Also, being turned down several times by lenders will have a negative effect on your credit history which makes it even harder for you to have a quick loan approval.

2.    When filling out your online application form for a payday cash advance, be sure to enter the all the details completely and accurately. Try to avoid skipping fields that you think may not be important for your application because the lender may have a hard time verifying your loan. As a result, you won’t be able to get quick loan approvals or even worse, you might be disapproved due to the incomplete information you have provided.

3.    Before proceeding with your online application for a payday cash advance, prepare all the required documents. Make sure that all the required supporting documents, such as a latest bank statement and your latest payday stub, are ready. Even when you get faxless payday cash advances, lenders will still require information to be sent electronically. And, keep in mind to always provide correct and required documents for smooth and quick loan approvals.

4.    Find a creditworthy co-signor or co-borrower when you apply for payday cash advances. Choose someone who has an outstanding credit record and does not have many creditors. Be sure that your co-signor or co-borrower is willing to be on your loan application. Being a co-signor is a great responsibility because if you fail to pay your loan responsibly, they will be the one who will be carrying the burden of paying off your loan.

5.    Present a stable income. This is the only security that lenders have. Be sure that you honestly disclose your net income and not just for the sake of getting approval. Remember, do not borrow above your means to repay.

FICO: More Consumers Are Making Perfect Credit Scores

Posted on by
Reply

The FICO (Fair, Isaac and Company) report than since 2008 more consumers are making an effort to build perfect credit scores. Many Americans are now working to cope with their financial situation and to improve their credit scores. About 18% have reached FICO scores between 800 and 850 and 15.5% are in the range of 700 and 799. Although one-third of the consumers of payday cash advances have FICO scores between 550 and 699 the statistics show that many Americans are eager to build good credit scores.

According to Rachel Bell of FICO, “Many consumers have moved into the top tier of the FICO Score range by redoubling their efforts to maintain an excellent credit scores and profile. Other people have fallen into lower tiers, most likely due to the financial stress that many households have been feeling. Despite this fact, we have observed that more than half of Americans have FICO scores within 700 to 850. This means, many Americans have managed their credit well despite the economic downturn.”

Although the fact remains that there are still about 15% of consumers of payday cash advances that have FICO scores in the range of 300 to 549, this is the lowest figure since 2006. The reason for this is the increasing number of bad debts that have been reported by lenders. But, Bell added, “Some consumers who had multiple bad debts and delinquencies a few years ago are now able to move on, and their credit scores are starting to move into the 550 to 699 range.”

The report and the figures revealed by FICO indicate that there is a chance for people with a very low credit score to improve their scores. Here are some of the ways you can do it:

1.    Initially, get a copy of your most recent credit report. You can go to the website myfico.com and order a credit score but you will be charged $15.95. The 3 major credit bureaus — Equifax, Experion, or Trans-Union are required to give you a free credit report by federal law.

2.    Pay off all your outstanding debts. Unpaid debts will give your lenders the impression that you are not spending according to your means.

3.    Avoid making late payments. One skipped payment can knock off about 100 points on your credit score. Make timely payments and be responsible with your payment schedule.

4.    Get associated with a person who has better credit. For example, if your spouse has a good standing and a long history of good credit, tell your spouse to request his creditor to add you as an authorized user. Although authorized users don’t share liability for the debt, a good payment history will add up on your credit score.

5.    Control adding or incurring more credit. Consider waiting for a few months before applying for a new line of credit.

6.    If errors are found on your credit report, notify the reporting agency immediately and ask for their removal. According to a survey, there is an 80% probability of an error in a credit report. In view of this, the Fair Credit Reporting Act or FCRA gives consumers the right to dispute as long as they can submit substantial documents that will support the claim.

7.    Practice self-discipline. There’s nothing wrong with having credit or borrowing money through payday cash advances. What is needed is good borrowing behavior.

What You Need To Know about Your Credit Report

Posted on by
Reply

Have you seen your credit report lately? You should have because it is one of the important documents that you should have. Why? Credit reports are used by an employer before hiring you, a landlord accepting you as a tenant and a lender approving your payday cash advance loan application.

In a recent study, it was found that only 20% of all Americans have access to their credit report. This is because most people are only concerned with their credit report when they are denied credit. This shouldn’t be the case. Financial experts suggest that consumers should take a look at their credit report at least once every 2 years. Credit reports are essential documents to help assess your credit standing and will affect the future of your credit worthiness.

Consumers are advised to get a copy of their credit report since inconsistencies in this report can cause a lot trouble. According to a recent study conducted by the federal government, there is at least 1 out of every 4 credit reports that contain errors. It was also found that there is approximately 1 out of every 6 credit reports that contain errors resulting in the denial of credit. Examples of errors on credit reports include confusing data with other family members, wrong entries of personal information or a default on a certain line of credit without you knowing it.

So what should consumers know about their credit report and what should it contain? Here are some facts that consumers should pay attention to when getting a copy of their credit report:

·    The 3 recognized credit reporting agencies that determine the credit worthiness of people in the USA are Equifax, Experian and TransUnion. These agencies maintain different credit reports and each one of them has to be obtained in order for the consumer to get a comprehensive idea of their credit standing.

·    Every consumer or non-consumer of payday cash advance and other credit lines can receive one copy of his credit report from each of the these credit reporting agencies at no cost.

·    A copy of the credit report can be obtained by logging in to the website www.annualcreditreport.com., the only authorized source by law to provide free copies of annual credit reports.

·    In the case of credit or loan application denials, consumers can get a copy of free credit reports from any of these 3 credit rating agencies.

·    A credit report has 4 different parts:

1.    Information about the individual (name and address, and social security number)

2.    Credit history (detailed list of accounts including the date of the opening, the details of loans taken, total amount of loan, payment history, outstanding debt, status of the account)

3.    Public records (history of bankruptcies, judgments, tax liens)

4.    Inquiries made by lenders or creditors for approval of credit or loan applications

·    In the case of inconsistencies or errors on credit reports, consumers can file for a correction by informing the credit reporting agency and submitting documents to prove the error. The claim for correction will be verified within 30 days of filing the dispute and a copy of the result of the investigation will be given to the consumer. If the error is found to be truly incorrect, it will be taken out of the credit report. If the agency finds the error not valid, consumers can contact the creditor for dispute settlement.

Taking time to check your credit report is necessary because it can affect important aspects of your life. Having a good credit report will give you better opportunities, whether in employment, loan deals, or credit applications.

Reasons to be Truthful on Loan Applications

Posted on by
Reply

Honesty is still the best policy even with loan applications. This is advice given by lenders to consumers of new lines of credit and short-term loans, such as payday cash advances. This is in response to the growing number of people who are not being truthful on their loan applications just to be approved.

According to a head of a personal finance department of a well-known loan company, for the first quarter of 2008, there was a 13% increase in the number of consumers who are not being truthful on their applications. In fact, there were 21,780 cases of fraudulent loan applications for the first three months of 2008 as compared to 19,239 cases at the end of 2007. This increase in untruthful loan applications may be due to the fear of being denied credit, but being untruthful will be fatal in the long run.

Lying on loan applications does not benefit consumers. Every time inaccurate information is given or an untruthful application is made, there is a greater chance of producing a negative effect on the credit rating for the consumer and a possibility of being denied credit in the future because of the fraudulent answers. The most common reason why consumers are not being truthful is on their address information.

There are a number of reasons why consumers are advised to be truthful in their loan applications. The following are:

·    Being untruthful on loan applications is a federal offense that is punishable by a fine and possible jail time.

·    Being truthful to your lender about your real financial status will help them give you a loan suitable to meet your needs. Withholding the truth will not help you or may even put you into a stressful situation. Even if you lie, you lender will still find out.

·    Take note that on the final page of your loan application there is a statement that says: the information contained on this application is true and correct. Affixing your signature on this statement means you are testifying for the truthfulness of the contents. If the information is found to be untrue, you are at risk of facing civil liability. Civil liabilities include monetary damages to anyone affected or experiences a loss because of the dishonesty or misrepresentations.

·    All loan applications are verified so there is no need to lye on your loan application. Although most lenders of payday cash advances and other types of personal loans do not require credit checks, they verify details on your personal and contact information. Most lenders take the loan process seriously and any false claims will be detrimental.

·    Lying about your income is not good. If your declared income to the government and your stated income on your loan application vary, this may put you in jeopardy of a criminal offense for falsification of records.

·    If the loan officer advises you not to be truthful on your application, beware. This may be a fraudulent lender or is a scam.

Being truthful in your loan application is crucial and the safest step to take when borrowing money. Doing otherwise will do you no good and will only bring you harm.
Meta Description: Being truthful in your loan application is crucial and the safest step to take when borrowing money. Doing otherwise will do you no good and will only bring you harm.