(Newswire.net — October 9, 2019) — Short-term loan companies can help those who need money quickly – whether this be for a home emergency or a car breakdown, these companies have been helping the public for years. However, there are many myths around short-term loans that simply aren’t true, and here we look at four of those and the reason behind each.
You Can’t Get a Loan with Bad Credit
Whilst some lenders will not allow you to borrow a short-term loan if you have a poor credit score, this doesn’t mean you aren’t entitled to help at all. There are many direct lenders for bad credit, such as BingoLoans who are able to provide loans for bad credit. This means you don’t have to worry about your credit rating to be accepted, as although they do take a look at your credit score, they also consider your finances coming in and out to determine if you are able to pay back your loan.
Loan Companies Have Hidden Costs
There is no short-term loan that has a hidden cost; everything that you need to pay should be written clearly before you make any agreement. You should always read the terms and conditions of any loan before going ahead, and if you are still unsure, it may be worth speaking to a customer service representative who will be able to explain any and all costs involved. Often the people who believe there have been hidden costs are those who hadn’t fully understood the payment plans.
Short-Term Loans Damage Your Credit Score
Borrowing a short-term loan will never damage your credit score unless you borrow more than you can afford to pay back or do not make the payments on time. Actually, a short-term loan paid back regularly and on time will improve your credit score! All loan companies will look at what you want to borrow and how long for and your capability to pay this back before an agreement is made. This means you will never be put in a situation where you can’t pay it back unless you lose your income or choose to put the money into something else.
Short-Term Loan Companies Target Low-Income Families
Short-term loans are not targeted at any audience in particular, and these companies are not looking for those most vulnerable to make payments. Short-term loan companies do not target and call low-income families or send emails – if you receive anything like this, it is likely a scam. A short-term loan is there for anyone who needs it; each individual case is assessed based on their financial situation at the time of the claim. This myth is often spread due to the fact that credit scores often do not affect the loan being given. These loans are simply there to assist those who needs temporary relief for any emergency that may have occurred in their life which they currently don’t have the money for.
Short-term loans can help those who need a quick fix. Remember to consider this choice carefully and look at your own financial situation before borrowing any kind of money. Ensure you borrow from a reputable company and make your payments on time.