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Tips for Smart Borrowing

We all know that it’s not smart to borrow more than you can repay and so on, but still a lot of people make the same mistakes when borrowing money and preparing the repayment plan.

American experts in finances and psychology agree that pretty often people borrow much more than they actually need. Therefore the first tip is to answer a couple of key questions – “Do I really need money?” and, if the first answer is affirmative “How much do I really need?”

So if you are sure you need instant cash in Louisianaplease, determine the amount of the money borrowed. Borrow for certain things only so that you could know how much you should get. Never borrow to just feel better and more financially secure – that would be a serious mistake!

Ask the nearest and dearest

Emotional decisions ruin our lives, but we cannot get rid of acting spontaneously even if logically we realize that something is going wrong. If you need an instant loan for a new TV set or to cover any other typical “family” cost, please consult your spouse firstly. You can benefit a lot from instant loans if you approach that kind of service with a cool head.

Parents often rush for an instant loan when they lack money for a birthday present – they are suppressed about that fact that their beloved kid can get disappointed if the gift is too modest. The best solution here is to find out what your son or daughter actually wants for the birthday and if this thing should be too expensive. If a kid asks for a bicycle it doesn’t mean you have to buy a top model for $1000 – mostly even a $300 loan would be totally enough!

Spend smartly

As we have already mentioned before you need to have a clear goal when borrowing. Let’s say, if you need $1000 cash for urgent roof repair it’s assumed that you spend the whole amount on the renovation work. You can’t even imagine how easily people lose their way after receiving a needed sum of money! They start spending it on other things most of which are absolutely irrelevant at the moment.

Those who need a quick loan just to have some fun are not recommended to apply for an instant loan. That financial hangover is especially tough when you just wasted the borrowed money without investing it in something you really needed.

Well, the tips enlisted here look totally obvious, don’t they? We all perfectly understand all this stuff about being cautious and smart when borrowing money. But everything changes when we actually get the borrowed funds. If you want to avoid frustration – please, keep our recommendations in mind and your loan will certainly help you get what you really need!

Borrowing from nearest and dearest: pros and cons

Life is a very unpredictable thing. The situation may get really tough and you have to either ask for help or apply for a loan. The latter option looks less attractive for many of us as it takes more time and required some additional actions.

Getting a loan from relatives or close friends looks to be a nice idea, doesn’t it? These people trust you, you trust them, but… OK, let’s check it step by step.

How to lose friends

In many countries they say “if you want to lose a friend – borrow money from him”. This proverb has dozens of variations, but the initial sense remain unchanged. Even if you borrow money and pay back on time the relationships between your friend and you will not be the same!

The thing is that your friend will still be nervous during the entire period of time when you do not pay him back. He will be thinking about dark variants of the future when you do not return money, get offended and stop even saying “Hello!” when meeting your friend in the street. This waiting is really difficult, believe us.

Relatives cannot give up on you as easy as friends who can just stop talking to you once and forever. Therefore relatives suffer even more, especially if you borrow from someone who is really close like a sister or a brother.

Without a doubt it is much better to apply for a California payday loan online or go to a bank and request a credit than borrowing from family or friends. That should be a taboo.

Advantages of borrowing from family and friends

Actually, there are no advantages – let’s be honest. When you do not borrow from family and friends your nearest and dearest do not have any reason to be worried about you. They do not have any doubts and anxiety regarding your personality. By the way, it is the reason why it is not recommended to give money to family members and close friends either! You don’t want to feel bad about these people, do you?

If you feel sure – take a loan

Well, there could be one small advantage of borrowing from family and friends – they will certainly give you the money if something terrible happens. But for all the rest you have banks and instant loans – choose what you like more.

If you have regular income and you borrow money for a certain purpose it’s much more reasonable to apply for a loan in a bank or to get instant cash loan. What’s more, taking funds from such institutions will make you spend more responsibly.

So to conclude – if you need a big amount of money (for example, to buy new business premises) it makes sense to apply for a bank loan. But if you are in search of a smaller sum for some urgent needs instant loans will definitely be the best option here.

 

A loan with poor credit history – easy!

Different things happen and sometimes circumstances don’t really depend on us. There is a great number of people who took a loan once but then had certain problems with paying it back and we cannot judge or critisize such people – any of us can face such a situation.

There is a stereotype stating that if you fail to pay a loan back and spoil your credit history there is no chance to get a new loan in future including instant payday loans. But don’t worry! There is always a way out!

Check your history firstly

Let’s say you was told by your bank or by other financial institutions that you credit ranking is very low now. Actually, it is still possible to make it better! Just check all your current debts, late and forgotten payments etc. For that purpose you may use such services like Clearscore, Creditcarma and many more.

It may happen that your score is not that low. However, if you clearly see that banks will definitely reject your application – don’t waste time and raise your credit score. The quickest way to do it is to…

Pay what is unpaid

Unpaid debts make your credit history absolutely horrible. Even a small debt makes impossible to borrow money from a reputable bank, so it’s surely worth trying to negotiate with the financial institutions you have outstanding payments to.

Believe us, these people are also interested in settling the issues with your account. So it’s absolutely normal to call and to ask what you can do about that. Typically they offer you to pay the debt and the delinquency fee. After receiving money banks can remove bad record from your credit history.

It will take some time, though. Credit history cannot be modified or updated immediately. Please be ready for at least few months of waiting. Sometimes it takes even more. Unfortunately, there is no faster way of improving one’s credit score.

Borrow regardless of credit score

Due to growing number of non-bank credit companies it is now possible to borrow money regardless of one’s credit history. It’s a risky business and risk is the main reason why interest rates of instant cash loans are so high. Anyway, people who borrow and spend smartly can benefit from instant loans a lot.

You do not have to waste time on bureaucracy and other stupid things – you come, show your ID and get the money in 5 minutes. If you take a short-term loan and pay back on time you won’t lose much money, check yourself. Just make sure you borrow from a company that has good reputation among people and works for at least a year.