Posts tagged with "Payday Installment Loans"

How Is Your Credit Score Calculated?

Your credit score reflects the health of your credit history, with a higher number being better. Anything above 700 is good. If your score is below 580, many lending companies will not give you a loan. Before you can improve your score, you need to have a better idea of how it’s calculated.

Primary Considerations That Go Into Your Score

The first thing you need to know is that there are three major bureaus that calculate your credit score. They are Equifax, TransUnion, and Experian. Don’t be surprised to find that each of these companies has calculated a different score for you; that’s because each company uses its own model for determining your score. But there are several key components that go in regardless of the model used, components that you actually have a great deal of control over.

The main considerations are:

  • Credit Card Accounts: How many different credit card accounts do you have? Don’t just consider your main cards, like Discover or Visa. Factor in all the store credit cards you’ve acquired as well. When it comes to your credit score, having too many cards can be harmful.
  • Current Loans: Do you have many loans that will take a long time to pay back? If you have mortgages, student loans, car loans, and others, you’ll want to try to pay at least some of them down significantly to improve your credit score.
  • Payment History: Do youmake your payments on time? If you’ve never missed a payment, your score is likely pretty good.

 

Some Additional Important Factors

Another consideration is the length of your credit history. If you’ve just opened your first credit card account, you won’t have much of a credit history yet. But don’t worry — in a few months or so, your history will build and your score will reflect your credit picture more accurately.

Another factor that affects your score is whether or not your credit cards are maxed out. Lenders want to see that you are able to pay your balances, at least the minimum that’s due each month. Also, if too many different agencies are inquiring about your credit all at once, your score can go down, at least temporarily.

What Can Hurt Your Credit Score

Of course, missing payments is a biggie. Late payments stay on your credit reports for years. Also, watch the spending and repayment habits of anyone who shares your account, such as a spouse. If they’re handling their credit cards irresponsibly, their scores will drop — and so will yours.

Read our previous post, What Hurts Your Credit Score, to find out what else can cause your score to drop.

Ways To Boost Your Score

You’ll be happy to know that there are many ways to increase your credit score. We can’t stress this enough: pay as much of your balance as you can every month, and make sure that all of your payments are received on time. Start to do this consistently, and watch your score improve steadily.

Another way to boost your score is to curb your spending to give you a chance to catch up with payments and reduce your balance. In addition, stop applying for every credit card offer that comes your way; each new credit card application brings your score down.

When You Need Money Fast

When you need cash quickly, such as for an emergency, but your credit score is keeping banks from lending you money, consider a payday loan. This type of loan is considered short-term, and it’s designed to get you through unforeseen circumstances until your next paycheck comes in.

Payday Loans In Texas

At Your Loan Depot, we specialize in fast-cash loans that help people with good credit, bad credit, and everything in between access funds quickly for emergencies and unexpected expenses. Our payday loans and title loans can be just what you need to pay for an emergency now, which can be a big help in between paychecks.

Fill out our payday loan application online to get started. If you have any questions, give us a call. The courteous representatives at Your Loan Depot will answer your questions and explain any terms you may not understand. We are here to help you through whatever financial emergencies you may encounter. We have several payday loan locations throughout Texas to serve you, including our offices in Stephenville, Corsica, Mansfield, and Houston. Get in touch with us today!

How Do Payday Loans Work?

When you’re stretching your money as much as possible but not quite making it to payday, it’s likely that you feel overwhelmed and stressed. Low finances and lack of savings create a lot of stress. When you fill out a payday loan application and are approved, however, you can avoid this stress and get yourself back on your feet. At Your Loan Depot in Texas, we offer payday loans to help you when you’re struggling with finances.

What is a payday loan?

A payday loan is a short-term cash loan that is based on either (1) the borrower’s personal check held for future deposit or (2) electronic access to the borrower’s bank account.

Let’s say you’re the borrower:

  1. You write a personal check for the amount borrowed from the loan company. This check will also cover a predetermined finance charge that the company requires.
  2. You receive cash.
  3. The loan company will hold the check until your next payday. At that point, the loan and finance charge must be paid at once.

It’s that easy! If you don’t have enough to pay the full amount when payday arrives, you can roll over the loan from your lender and pay an additional fee. Lenders now also will work with you for electronic access to your bank account if you receive direct deposit at your employment.

What are the requirements to get a payday loan?

Whether you’re getting a payday loan online or at a physical building, there are certain requirements you’ll have to meet. You’ll need the following:

  • An open back account in somewhat good standing
  • A steady source of income
  • A form of identification

You don’t need to have a full credit check performed or answer questions regarding your ability to repay the loan.

How do you pay it off?

Just like any loan, it’s best to pay off your payday loan as quickly as you can. If you’re in a situation that warrants a payday loan, then you likely just need some cash — not very much — quickly to get you to payday.

That being said, payment terms and options, along with different fees, will vary by state, product, and case. Make sure you understand all of your lender’s requirements before you commit to a loan. This could save you time, headaches, and, ultimately, a lot of money down the road.

Your Loan Depot

All payday loans will vary depending on where you are. With Your Loan Depot in Texas, payday loans are available up to $1,000. If you need more than $1,000, a title loan may be a good option for you. We pride ourselves on our personal relationships with all of our borrowers, and we hope to help you in your time of need. If something changes in your situation, every loan comes with a 72-hour cancellation period.

Whether you need a payday loan in Tomball, are looking for a trustworthy loan company in Houston, or are in another part of Texas, we hope you choose Your Loan Depot.

The Pros of Using a Payday Loan in Financial Emergencies

A financial emergency is always more than just a financial emergency. It’s something that affects other parts of your life. And money could help. Right now. You don’t get a payday loan every day or every paycheck. But they are there when you need them. Here are some of the pros of getting a payday loan in financial emergencies.

1. They can get you off the hook for an even more expensive problem

There are some emergencies where if you don’t find a way to come up with the funds, it could cost you (or a loved one) a whole lot more than just the amount of money you need to find right now.

  • A loved one is sick and needs an expensive medication that could save their life.
  • You need to bail someone out of jail or they’ll lose their job.
  • Your car breaks down and if you can’t fix it, you won’t have a way to get to work.

Payday loans may not be cheap, but they can be cheaper than some of the bigger problems that life wants to throw your way.

2. They are fast

Compared to the alternative of getting a conventional loan from a bank, a payday loan is super fast. Walk in with your paycheck, walk out with a loan. When you go the bank route, you have to fill out a bunch of paperwork, prove that you have assets and collateral to back up the loan, and have a convincing reason why you’ll be motivated to pay it back in installments. The process may take days while the bank underwrites you, and at the end of all that, they could tell you that you’re denied. Some emergencies won’t wait that long.

3. The only thing at risk is your paycheck

For many bank loans, in order to get the loan, the bank will not lend you anything unless they can guarantee that they’ll have a way to get the money back. They may put a lien on your car, and if you don’t pay back the debt, you lose your car. Same thing for getting fast money by putting your stuff in a pawn shop. You could lose your stuff for a lot less than you paid for it.

With a payday loan, the only thing at risk is your paycheck. You can always make more money. Only you can tell how big a risk this is to you. Many people do live from paycheck to paycheck and can’t afford to lose even one paycheck. However, some emergencies are bigger than the risk of losing a small sum of money today, and if you can’t pay the sum back on the very next paycheck, you can pay the finance charge again to roll over your loan to the next check.

4. They are convenient

A payday loan is a convenient way to get some fast cash and pay it back when you have the chance. Payday loans are convenient because they are built on the opposite principle of most loans. Most loans are built around whether or not the borrower has the ability to repay (while still paying for all their other expenses). If the lender concludes that you’re not able to repay, they won’t lend you anything. Payday loans are the opposite; they are built on the lender’s ability to collect, and since you’ve written them a check that they won’t cash until your payday, they know that they will be able to collect. This leaves the burden on you to determine whether you’ll be able to pay back the loan, but in exchange, you get the convenience of a fast loan that’s easy to obtain.

5. You don’t have to have good credit

Payday loans are an option for people who have no credit or a very low credit score. If your credit history is poor or nonexistent, but you have a stable income and an active checking account in good standing, you’ll typically be able to get approved for a payday loan easily.

6. You can’t get in thousands of dollars of debt

If you’re afraid of debt, you’re not alone. However, there are other ways that you can get in far more debt than with payday loans. The way payday loans work, you get a finite amount of money on a short-term basis. The amount of money you get is typically smaller than the total amount of your next paycheck minus a financing fee. This is still a lot of money (after all, you worked for a whole week or two of your life to earn that money), but it’s a finite amount that is reachable for more people to pay back.

Compare this to opening a credit card where you get a credit limit of thousands of dollars. If you have trouble keeping your spending within what you can afford to pay off each month, a credit card can be an even bigger trap, as you’ll be in debt for years, racking up hundreds of dollars in interest and paying almost twice as much as the original price by the time you finish paying it off. The credit card companies know that many people will spend up to the credit limit and then carry a balance at or near the credit limit for years. They’ll sometimes even raise the credit limit once you reach your current one, ensuring that you’ll continue to pay them interest for many years to come.

7. There are few requirements to get a payday loan

If you need cash fast, you don’t need someone who is going to ask you a hundred questions and make you bring bushels of paperwork to the office before they’ll issue you a loan. Just bring the proof that you’ll be paid and that you have a stable job history, and then write a personal check to your payday loan company. In most cases, you’ll be approved for your payday loan and you can go on your way and do your business.

Get your payday loan in Texas today

Stop by one of our locations in Texas today for your payday loan, or apply online.