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5 Mistakes You Must Avoid before Applying for a Personal Loan – 2020 Guide

People around the world are different for many reasons. They have different cultures, traditions, mentality, and ways of thinking. However, it seems that the concerns of people around the world are not that different. More precisely, we commonly have a problem with a lack of cash flow.

It doesn’t matter if you live in the USA, India, Mali, or Serbia. The salary we all have usually does not cover all the costs we have. Despite that, it is almost impossible to make some long-term plans with our budget. That is the reason why people often decide on applying for a personal loan. We do not want to say it is a perfect solution, but it is an option that can solve many of your problems.

Applying for a personal loan is easier than ever before. Thanks to the advanced technology, we can do that from the comfort of our room. For instance, you can apply now at Magical Credit for a personal loan. Visit the website we attached, and we guarantee the entire process won’t last more than 5 minutes.

Yet, applying for a personal loan is not a small decision. There are certain mistakes you must avoid before applying for a personal loan. Let’s find them out together and make the entire process a lot easier for you.

1. Apply for a Loan When That Is Necessary

People do not understand that they need to have a plan for everything they are doing in life. Applying for a personal loan for no good reason does not have any sense. You will manage to find many attractive offers in different places. However, do not forget that each one of them has an interest rate. Of course, you should chase those offers where interest rates are low. However, why would you unnecessarily enroll for a loan when you have enough money?

Use the opportunity like that only when it is necessary. For instance, getting a personal loan because you want to purchase new clothes does not have any sense. You may not manage to clear the dues on time, In that case, you can potentially harm your credit score. When the moment you truly need the money comes, you won’t manage to get a credit. Because of that, determine if applying for a loan is necessary or not.

2. Forgetting to Check Your Credit Score

We will continue the article in the same manner. Let’s imagine that you have a 750+ credit score. In that case, you will not have a problem applying for different loan variations. People with a good credit score will easily get approval without any additional problems. Despite that, they will usually get better repayment terms. For instance, they may get better interest rates, waiver on processing fees, etc. That is the reason why you must check your credit score before deciding on this move.

A bad credit score is not a problem that you should be afraid of. The only solution you have is to try to improve it. To start, try to clear all the existing dues that you have. In most cases, car loan EMIs and credit card payments negatively influence our credit score the most.

Also, you need to understand that mistakes happen in the world of advanced technology as well. It may happen that your credit report is not always fully correct. In some cases, the report may lower your credit score because it contains a few small mistakes. Always go to your bank and fix the mistake that does not allow you to get better repayment terms.

3. Not Analyzing Your Requirements

Here comes the mistake that people commonly make. Let’s imagine that everything around your credit score is fine. Logically, you will manage to get a bigger amount of money and some better repayment terms. However, people often use that opportunity in the wrong way. It often happens that they take a loan bigger than their requirements.

Being eligible for a big lone is going to be a good thing only if you know how to use it. Loaning more money than you can afford to back can only cause some additional problems. Do not get even one penny more from the amount of money that you need for some reason. In that way, you will ensure that the entire process will function in the right way.

4. Being Too Confident in Your Repayment Capacity

A financial emergency is one of the reasons why people often apply for a personal loan. However, you must not make this type of decision in a hurry. Instead of that, you should carefully analyze your repayment capacities.

Let’s imagine that you urgently need money for some reason in the next seven days. Logically, a personal loan is the best way to solve the problem that you have. However, you need to be sure how you will back the money that you borrow. Do not forget about the interest rates and other fees you will need to handle. Getting a personal loan with no repayment plan will only expose you to some major risks.

There is another thing that people often forget. For instance, they know exactly how to earn enough money each month to get the money back. However, they do not put other financial commitments into consideration. More precisely, they do not make some sort of plan B. As you know, things are not always going to be as you imagine. The unexpected costs are usually those that bring some additional problems. Because of that, you should somehow plan to earn more money than it is necessary. When unexpected costs occur, you won’t struggle to repay the personal loan.

5. Applying for Multiple Personal Loans at Once

Comparing different options is a great way to find the best possible offer. Yet, that doesn’t mean you should apply for all of them. By doing that, the only thing you will get is a negative credit score. Because of that, apply only for those options that will meet your expectations are requirements.

There is another thing that we need to advise here. You may get rejected for the first personal loan application you make. Do not immediately strive to find another one. Improving your credit score should be your main priority. After you do that, you can put other options into consideration.

Emergency Funding: Get Fast Loans Online

You may have money set aside for future expenses. However, emergency expenses and other big-ticket expenses can come, which you cannot afford if you have little to no savings intended for such situations. For unexpected financial emergencies, you will need fast funding.

Applying for a loan from banks and other lending companies may take some time before approval and release of the money. On the other hand, getting loans online is ideal because of quick processing and accessibility.

If you plan to resort to the latter, there are loan options you can avail, of and one of them is emergency funding.

Emergency funding

Emergency funding helps you cover unexpected expenses that you cannot afford currently. These expenses are completely unplanned and unpredictable. These loans are usually unsecured, meaning you will not need to set up collateral to secure your loan.

You can use your emergency funding for many emergency expenses. These include an occurrence of a natural disaster, major car repair, home repair, school fees of students, medical expenses not covered by insurance, any big-ticket purchase needed immediately, and other emergency expenses.

You can get funding without using your credit card, avoiding the risk of juggling multiple credit limits and payment deadlines. With taking out an emergency loan, you only have to make a fixed-rate installment cash credit payment.

In choosing an emergency loan, you have to consider the funding speed, loan rates, and features of the lender. Since the funding is for emergency purposes, you should look for a lender that assures fast funding like CreditNinja

Also, compare rates from different lenders. Lastly, consider payment features through reading terms and conditions. If you consider these, then you will surely get the best deal for your emergency funding.


Here are the advantages of emergency funding:

1. Fast

Today’s generation wants everything to be done in an instant. They want to make borrowing money as easy and as fast as possible. Thus, it is important that emergency funding be provided as soon as the application is approved. Online lenders disburse the funds to your personal savings account after approval.

Banks and other physical lending companies may take time to review the application. The application process may take a few minutes to an hour, while the approval may take a few hours to a day. Good thing, online lenders can quickly inform the applicant of the approval/disapproval of the application and when the account will be funded.

2. Convenient

Aside from the fast processing of loan applications, you do not have to physically go to their offices repeatedly to apply. With just a few clicks of a button, you can easily process your loan application and get updates anywhere you are.

Online loans are more accessible to every American. Banks and other traditional lending companies use a more rigorous method in approving loans than online lenders. You will also get better chances of approval even if you have a low credit score.

Further, there is minimal documentation needed for online loans. The documents asked by online lenders are minimal and basic, such as identity proof, income proof, and address proof.

3. Lower interest rates

Since online loans are more flexible than other traditional loans, online lenders can sometimes offer lower interest rates with lower minimum and installment payments. This is also because these loans are short-term. Thus, the lower interest rates than what banks normally offer. The best way to know what company has the best interest rates is to shop around.

4. No collateral needed

Many traditional banks and lending companies require you to set up collateral. On the other hand, online lenders use other ways to know your creditworthiness. They will use your debt-to-income ratio, utility bills and payments, and even your social media accounts. Without setting up your property as collateral, you will avoid the risk of losing your asset.

5. It’s okay not to have a high credit score

You do not need a perfect credit score to qualify for an online loan. Going to traditional banks and lending companies require you to have a good credit score before that will approve your loan. However, not everyone has a good credit score. Since online loans are flexible, then online lenders will find a loan with terms suitable for those with poor credit scores.

Processing your online loan

Here are the steps you need to undergo if you want to apply for emergency funding:

1. Check your creditworthiness

You do not need to have the highest credit score to take out an online loan. However, it would be good to start with a good credit score. Having such would boost your application and will get quicker approval than having a low credit score. You will also have a higher chance of getting a lower interest loan if you have a good credit score.

2. Prepare important information

Having all the important information on hand will make it easier for you to apply. These include your personal documents, certification regarding your credit score, employment details, and income details.

3. Shop around

The best way to get lower interest rates is to shop around for different online lenders. Aside from interest rates, you should focus on the fees and other charges as well. Doing so will ensure that you will get a lender with terms that are fit for your funding needs and qualifications.

4. Apply and wait for approval

Once you found your online lender, send an application, and wait for any updates regarding your approval. Once approved, wait for the money to be deposited into your account. Make sure that you pay on time to improve your credit score, which will be essential in the future.


You will never know when you’ll need a huge amount of cash to pay for something urgent. It may be for emergency medical expenses, car and home repair, or a big-ticket purchase that needs to be purchased as soon as possible. Fortunately, you can get funding online. All you need is to shop around, apply, and wait for the approval.

What You Didn’t Know About Credit Bureau in the US

Have you ever wondered why there is a difference between your interest rate and your best friend’s? Well, mystery solved: the infamous credit bureau. A credit bureau is a financial information institution that gathers data about an individual’s credit behavior and reports it to lending companies so they can make a smart decision about lending money to relatively complete strangers.

Think about it. If you ask a person for money, your possible loaner will ask around about you, how well you pay, how often do you ‘forget’ your payments, and, in sum, whether it is safe to give you the money or not and how expensive this decision will be.

Is Credit Bureau a Bad Institution?

Not at all. The experts from Caminofinancial tell us that it’s a common misconception that credit bureaus are responsible for accepting or rejecting credit requests but the reality is far from that. In fact, a credit bureau is a private company that collects data from banks, mortgage lenders, credit card institutions, and small loaners.

Sometimes, they even collect data from rent brokers, debt collection agencies, cell phone provider companies, utilities, and public records such as court records. This way, they can have the whole picture of your payment behavior.

Mainly, these companies collect all the available data to elaborate a credit report, which they share with any financial institution that requires it. They can even provide this service for you if you need it.

There are three main credit bureau companies in the United States that you probably heard about: Equifax, Experian, and TransUnion. Even though these are quite famous, there are many other smaller ones that have the same function.

What’s in it for you?

Whenever a financial company gets a credit request, they check the information that the credit bureau has about you in order to “get to know you” and understand your credit behavior. So being in the credit bureau isn’t necessarily a bad thing. It just means that you have, in the past o currently, acquire a credit.

Think of it this way: Would you lend money to your cousin even though he never paid back the money he asked your mother a year ago? Definitely no. Would you lend money to a friend who asked you for some cash in the past, and even though he paid back, it took him four years and a lot of phone calls to terminate the debt? Probably, but under certain conditions to protect yourself.

But, what if your sister asks you for some money and promises to pay you back the same way she has done it in the past? On-time and without any drama. You wouldn’t even think about it, right?

The bank is in the same position as you are in these examples, but since the financial institution doesn’t know you personally, they ask the credit bureaus for your records. The institution would lend cheaper money to your sister and way more expensive one to your cousin. Smart decision, right there.

So, the better your behaviour, the best terms you’ll find in your next credit or loan request. And if you don’t take care of your credit history, you’ll receive the opposite.

If you aren’t in a credit bureau…

This means, plain and simple, that you’ve never had a credit or a loan on your name. Not for your residence, your phone or even student loans. You are a bit of a ghost for the banking system.

If you are not in any credit bureau, the bank will assess the risk as an unknown individual and your conditions might not be great. It’s like lending money to a guy on the street that you know nothing about.

This is why it’s important to build your credit history. And the only way to do it is… asking for a loan or credit to a financial institution. And, of course, paying on time so that you get a good credit history and then, a good credit score.

Talking about credit scores…

As said before, there are different credit bureaus that score credits. You can check your score in the three most common credit bureaus and you’ll find small differences in the final score. That’s because each has its own methodology and algorithms and take different factors into account. But the one thing all of them have in common is the score range.

This is how they’ll rate you:

  • Excellent: 800 points or higher
  • Very good: 740 to 799 points
  • Good: 670 to 739 points
  • Fair: 580 to 669 points
  • Poor: 300 to 579 points

In general, the scores take into account that you pay on time every month, how long you’ve been using the credit, that your debt is no higher than 30% of your income and that you don’t have a bunch of credit lines.

If you are considering asking for a loan and the financial institution requires your credit score, but you don’t know it, don’t worry. Getting it isn’t hard at all. You can even use free services to pull up the three scores from the credit bureaus. You’ll just need to provide your email address, your basic personal information, and the last four digits of your social security number.

An extra tip: it would be a good idea to take all three scores so the lender has all the data right there and then.

Have always in mind that good credit score will open the doors for bigger and better credit opportunities, and a poor one will limit your chances of qualifying for a loan, buying a home, or even purchasing supplies for your business.

Bottom line

A credit bureau will gather the best and the worst part of your credit behavior and will play an important role in the decision making of a financial institution when you request a credit line. But will never take an active part in that decision. It’s only a data-gathering agency and you’ll also be able to revise your score to make a better decision when it comes to asking for borrowed money.

Shrouded in Title Loan Debt? Here’s What You Can Do

Being buried under a mountain of debt is a scary feeling. Unfortunately, the overwhelming majority of people in the United States today are living paycheck to paycheck, In fact, almost 80% of Americans would have a difficult time paying a $500 emergency.

Think about that for a second.

Because of all of this financial strife, a lot of people are taking on subprime loan debt to get them out from underneath this dark cloud, not realizing that a lot of times they are mortgaging their financial future just for a little bit of short-term relief.

Take car title loans as a quick example.

A lot of people see these kinds of loan packages as a godsend, something that they can use as a bit of a financial life raft when they are drowning piles and piles of debt already.

How Title Loans Work

A car title loan is a subprime one that uses a vehicle’s title as collateral. These are usually advertised to borrowers with fair to poor credit. According to, title lenders will usually lend half the vehicle’s value, which is determined by the vehicle’s age, mileage, make, model, and a few other factors. Before a borrower can secure a title loan, they must bring their vehicles in for an inspection at which point the lender will take note of the aforementioned factors.

Once a loan contract has been written and signed, borrowers will typically have 30 days to repay it in full. If the borrower does not pay in full, the borrower will have to renew it for a fee. This is commonly known as a rollover. If the borrower fails to either pay the title loan off or rollover it, the lender has the right to repossess the vehicle.

In some cases, the borrower does have some protections afforded to them by their state’s small-loan statues. For example: If a borrower’s vehicle is repossessed, some states protect the borrower from having to continue paying the full amount. In a situation like this, the lender must deduct the proceeds from selling the borrower’s vehicle from the outstanding loan amount. Unfortunately, not all states have the proper laws in place to protect borrowers from predatory lenders.

The Allure of Title Loans

Nontraditional lenders offering car title loans are quick to advertise them as an opportunity to get quick cash with nothing more than your vehicle title as collateral – probably advertising that they don’t care about your credit score, your credit history, or any of your other financial details.

People flock to these kinds of services because of the promise of real relief, never realizing that they are simply playing a crooked shell game, and that their financial situation is going to get worse (sometimes much worse) sooner rather than later.

Over a few weeks, a financial snowball starts to build as detailed here in the Motley Fool. Loan fees add up, annual percentage rates on these kinds of loans regularly top 260%, and before you know it you are taking other loans out to take care of these financial obligations – and the cycle rinses and repeats until you find yourself in even more debt than when you started.

Thankfully though, you don’t have to relegate yourself to this kind of financial nightmare any longer.

No, there are a lot of ways you can manage and mitigate your situation to get out from underneath the vicious cycle of subprime loan debt just by taking advantage of the tips and tricks we highlight below.

Solutions for Car Title Loan Nightmares

The best solution for dealing with a car title loan nightmare is to simply find a way to pay it off as quickly as possible, making sacrifices in other areas to help you get out from underneath this debt ASAP.

Here’s five helpful tips to get out of debt on a low income:

Sadly, though, the overwhelming majority of people dealing with car title loan nightmares are in this situation precisely because they had no other options, no other alternatives, and no other financing or money available.

One option, and it is not for everyone, is to sell the car that has the title loan on it. This will give you a lump sum of cash to get out of it. You could also downgrade your car, so you are not totally without wheels.

Obviously, neither of these options are all that attractive. Refinancing or consolidating your debt with a more traditional lender may be a road you want to go down, too. Your financial situation may have turned around a little bit since you had to take out a car title loan and you may now have good enough credit to get a traditional personal or consolidation one from a bank, credit union, or credit card company.

Finally, it might just be a good idea to contact the car title loan people directly and see if there’s a way to negotiate friendlier repayment terms.


You might be a little surprised to hear this, but the overwhelming majority of car title loan lenders have absolutely zero interest whatsoever in getting into the car selling business. They don’t want to take possession of your vehicle, nor do they don’t want to repo your vehicle, and they don’t want to deal with the headache, hassle, and the expense of finding a way to sell your car after they’ve taken it because of it being a car title loan default.

Almost every company out there would rather talk to you directly to work out payment terms that make sense for both parties, and help you get out of this financial situation rather than strap you even more than you are right now – in which case they have to now spend a lot of money to sell your car (for who knows how much money), never recouping anywhere near what they would have gotten if they were flexible in working with you.

Student Financial Goals For 2020

Being a student is perhaps one of the most financially pressing times in your life, but that doesn’t mean that things have to be all doom and gloom. Before beginning your educational journey, it is important to take some time to plan out your finances and ensure that once your time at university is over, you are not left in so much debt that your newfound career is simply a way of paying this back. If you want to learn how to get a lower interest rate on student loans, you should check out Purefy and consider all your options carefully.

In this article, we are going to share some handy tips for staying on top of your finances during your time as a student and how using tools such as can be of huge benefit.

Stay On Top Of  Your Credit Score

We have all been guilty, at one time or another of letting our credit score get away from us, but this can prove very detrimental to your finances. By staying aware of your credit score and everything on your credit report, no matter how bad it may be, you can work towards maintaining or improving it. If you bury your head in the sand when it comes to your credit rating, you will never be able to better it.

There are plenty of useful tools and even mobile phone apps for the student of 2020 meaning that monitoring your credit score has never been easier. All it takes is checking your report once a month and implementing any changes, you will soon see your score skyrocket and this will put you in an advantageous place once your studies are over.

Set A Monthly Budget

Most people are familiar with the image of the student eating noodles out of a tub with plastic cutlery because they don’t have enough money for a decent meal-but this certainly does not have to be the case. The problem is that a lot of students, who are just starting out in the adult world, find it difficult to manage their money and make it last. The addition of a simple budget can put you in full control of your money and give you the peace of mind that you will have enough to last each month.

Think about what things are essential for each month-food, utility bills, clothing, etc and make these a priority. It is wise to pay for these at the start of each month so that you know they are dealt with. Whatever money you have left can then be split and a certain amount allocated for each week to be spent on ‘luxuries’ such as nights out, cinema trips, etc.

Keep Track Of Your Spending

One great way of staying in a superior financial position is to keep track of EVERYTHING that you are spending, and this couldn’t be more important than in 2020. With easy access to internet shopping and the use of the contactless card, it is easier than ever to overspend without realising. This is why keeping a record of every penny you spend can help you to stay out of debt and in control.

You can use a system as simple as a notebook and pen, and write down, to the penny, what you have spent each day. This is not only great for avoiding overspending but is also excellent in helping you to assess what unnecessary items you are purchasing.

Save For A Rainy Day

In the case of most students, there isn’t a lot of room for huge savings but as the saying goes ‘every little bit of help.’ Putting away even the smallest amount of money each month can prove extremely useful if you ever find yourself in an emergency.

There are two great options for saving, you could put away a set amount each month and tie this in with your monthly budget, or you might simply put away your spare change. It may not sound a lot but over time, pocket change can build up into a substantial sum. The most important thing is to be disciplined and keep your savings somewhere that you do not have easy access to either a bank account for which you do not have the card for or a locked safe for which you do not have the key or code. Consolidate Debts

It’s not uncommon for students to find themselves in debt, besides student loans there might be credit cards, car finance, and payday loans. If you are struggling with a large number of outgoings each month, why not consider getting a loan to consolidate all your debts into one? You can find guaranteed loans, which are a great option for students, especially those with bad credit, over on the NowLoan website. This super handy tool can assist you in comparing loans to find the best option for your personal needs, putting you in a much healthier financial position, not to mention helping boost your credit rating.

Set A Long Term Financial Goal

At this moment in time, you are likely focusing on your education and enjoying your life, however, the future will come around sooner than you think. Coupled in with saving, a long term financial goal can give you a clearer idea of what you are aiming for. It doesn’t need to be over-ambitious like owning your own home with no mortgage (although there’s no reason not to reach for the stars) but it could be something as simple as “I will boost my credit score by 100 points in the next 12 months.) This will give you something to aim for and will motivate you to stick to your more short term goals.


If you are becoming a student in 2020, it is so important to enter into this phase of your life with a healthy attitude towards your finances. There are plenty of financial goals that you can set as a way of ensuring you keep on top of your cash-flow and stay out of debt. Whilst these short term goals such as the use of Nowloan to help with making an informed decision on the right loan or you or saving can be very beneficial, it is also important to think about your long term goals as well.

Tips for Getting a Home Loan in 2020

Getting a home loan in 2020 might be a challenge given the many mortgage options and the low affordability of homes. While finding the right home can be exciting; getting the loan to finance your dream home is equally important. If you’re considering taking the plunge and finally buying a home, make sure you’re doing it smartly and not getting yourself into a loan you’ll regret. Here are ten tips to help you acquire a home loan amid the 2020 real estate trends.

1. Save Early for Your Down Payment


If you want to buy a home, you need to start saving for the down payment as early as possible. Down payment can be as low as 2.25% or as high as 20% of your home’s buying price, depending on the financing option you choose. With this information, you can decide how much you can comfortably save and work on a plan that allows you to put away the amount every month.

The earlier you start saving, the more money you’ll have for the down payment and other home-buying costs such as moving expenses, closing costs, and home appraisal and inspection costs. If you are on a tight budget, consider financing options with low down payments like FHA.

2. Check Your Credit Score


Lenders use your credit score to determine your suitability for a loan. A lower credit score means you are a high-risk investment. Before you set out to buy a home, check your credit report to see what your credit profile looks like to lenders. You can then put up measures to ensure that your credit score is high enough for you to acquire the best home loan deals.

The good thing is that you can get your annual credit report from credit reporting agencies like TransUnion and Equifax. You can also get your credit score at a small fee. If your credit report has errors, you should have them corrected immediately.

When it comes to credit scoring systems that use a range of 300-850, a credit score of 700 or above is usually considered good. In the same range, a score of 800 and above is considered to be excellent. Most commonly, a credit score falls somewhere between 600 and 750. If you have a higher credit score, it means that you’re seen as more responsible to lenders. As such, they will have more confidence in you to lend you more money.

A variety of organizations use credit scores. Lenders can include banks providing mortgage loans, car dealerships, and credit card companies. All of these organizations use your score to make a choice about whether or not to offer your credit like a card or a loan, as well as what your down payment and interest should be. You may have heard of the FICO® Score, but this isn’t the only type of score there is. There are many types of credit scores, including scores by VantageScore and industry-specific scores.

3. Have All Your Financial Documents in Order


When applying for a mortgage, you will need to provide financial documents to convince your lender that you can pay back the loan. With this in mind, ensure that all the necessary financial documents are in order. These include tax return for the last two years or your recent W-2s, your previous two paycheck stubs as well as bank and brokerage statements. With your documents in order and readily available, your home loan processing will be much easier and faster.

4. Make Use of Mortgage Calculators


A mortgage calculator helps you establish what you can afford when buying a home. Use a mortgage calculator to figure out your mortgage installments, given different prices and interest rates. This way, you can plan your finances better and avoid going outside your financial comfort zone.

5. Compare Different Offers


It would help if you didn’t settle for the first quote or lender you find. Have a look at various financing options and compare them before choosing a suitable alternative. Look at factors such as the interest rates, flexibility of payment, fees involved, and even mortgage premiums when comparing different financing options. A better way is to look at the Annual Percentage Rate (APR) of different lenders as it represents the overall cost of your mortgage and gives a more accurate comparison figure. There are several different types of mortgages. You can learn more about them here.

6. Track Interest Rates


Since the cost of your mortgage will be highly dependent on the interest rate, you need to know whether they are rising, falling, or stagnating. This helps you predict what you’re likely to pay for your home loan once you secure it.

7. Get Mortgage Pre-Approval


A mortgage pre-approval not only shows you how much you can borrow but the price range of the homes you should consider, too. It also improves your chances of homeownership as most real estate agents and sellers prefer working with pre-qualified buyers. What’s more, pre-approval shows your seriousness when placing offers on homes. To be pre-approved, you only need details of your income, savings, and investments.

8. Research Your Mortgage Options


Mortgage options differ from one lender to another. Some offer fixed-rate payment schedules while others are adjustable. By understanding the nature of your available loan options, you will be in a better position to choose a home loan that suits your financial situation.

9. Always Communicate Promptly with Your Lender


After applying for a loan, be sure to respond to any requests by your lender promptly. Whether your financier is looking for clarification or asking for more information to process your loan, ensure that you provide immediate feedback. Delayed responses may lengthen your loan approval process, which results in problems that may cost you your dream home.

10. Don’t Ruin Your Credit


Lenders usually take one last look at your credit status before closing to make sure your credit score hasn’t dropped, and your debt-to-income ratio is not higher than it was. To avoid ruining your credit, pay your bills on time and avoid taking new credit or applying for new loans before your home loan is closed.

3 Possible Risks of No Credit Check Loans – 2020 Guide

No credit check loans are types of loans that do don’t take into account your credit score. This is quite evident if we simply take a look at the name of these loans, but is there anything else that distinguishes these loans to others?

Whenever you’re at the bank or another financial establishment and looking to apply for a loan, the institution in question will do a checkup on your credit score and look at your financial report to determine how trustworthy you are.

This evidence can determine whether you’ll be given the loan or whether you’ll be rejected for it. Also, if you do manage to get approved with a poor credit score, you’ll be given tougher interests to pay off since you’re a person of high risk.

It’s because of these measurements that lots of people are unable to get approved for various loans. And, judging by this article, here is where no credit check loans come into play.

This might seem too good to be true, but there are certain risks involved even with these. No one will simply give you money without any security of you paying back. So, to put things into perspective, here are the 3 possible risks of no credit check loans.

1. You Could Face Problems if You Don’t Pay on Time

Since these loans don’t ask for your credit score or financial history reports, the lenders need some sort of security that you’ll pay them back on time.

These security measures come in the form of higher fees and higher interest rates. This is nothing unusual since we’ll say it again; anyone can take out such a loan.

But there needs to be order and the lenders are in firm control of it through these means. This is how any financial lender makes his salary. This is how loans work, even those at the bank.

When someone gives you a loan, you have to pay it back and you’ll pay a certain percentage higher. That percentage is somewhat higher than ordinary loans.

However, the risk exists when you fail to pay on time. Lenders that provide these services have no way of guaranteeing that they’ll be paid on time. So, if you happened to be late on your payment, you will have to pay even more.

If you’re unable to afford it, we suggest you don’t even take one as chances are you’ll have to take yet another loan just to cover for the first one.

With all that said, you shouldn’t take any type let alone a no credit check, if you have no real way of paying off.

2. Be Careful Who You Take it From

It goes without saying that if someone offers you a loan without having to provide your financial history or credit score, then they might be into some shady business.

With all that said this is a completely legal matter and most of the lenders are fully legal and law-abiding. But, it won’t hurt to follow caution and do your research beforehand.

Shady lenders will give you very unfavorable terms and will try to lock up in a never-ending cycle of debt. If you’re not careful about how you approach this matter, you’ll get scammed nine times out of ten.

To be certain that you won’t, all you have to do is choose carefully. Luckily for you, no credit check loans are a great way for you to pay off an emergency medical bill, business expense or consolidate existing debt. And luckily for you, these are lenders out there that care for you and want to help you make the most out of the situation. So, if you’re stuck in between lenders, we suggest you make a U-turn and visit this website today for more information on how to get your next no credit check loan.

3. Unexpected Withdrawals

When you go to a financial institution to get approved for a loan, you’ll be transferred the money on your credit card.

This is exactly how no credit checks operate, but there is one more risk we should take a look at. Namely, when you take one such a loan, you’ll have to agree to have each and every payment of that loan be automatically withdrawn from your bank account.

That means that you have to link an existing bank account to obtain the money in the first place. This can be particularly risky if the lender withdrawals next month’s rate and you’re left with no money to pay the mortgage bill, landlord bill, or any other bill that you have lined up.

As you can imagine, failing to pay a monthly bill can put you in a lot of trouble. However, as we said in the beginning, you shouldn’t be doing something like this if you have no means of paying off.

It doesn’t matter the type of loan if you don’t have any way of paying back the lender.

These loans are great if you’re facing an emergency that needs quick resolving such as a medical bill, unexpected repairs, etc.

The great thing about a no credit check loan is the fact that they’re super fast, with most getting approved in the next two-three hours and they don’t require a brilliant credit score.

You shouldn’t expect anything more and you shouldn’t ask for lots of money. Use these only for what they’re meant to do, which is cover for emergency expenses.

No credit checks shouldn’t be a means to live paycheck to paycheck and you should work more on your finances before taking one.

Some might argue that you shouldn’t even consider these, but we beg to differ since they’ve helped a lot of people when they’re most in need of a financial injection.

And the last thing you should do is, as we said earlier, pick the lender based on your needs. Always read reviews on the particular lender to determine if the lender is legit or corrupt. This can be the difference between paying off your debt or getting stuck in a never-ending, vicious cycle.

2020 Apartment Application Process – What to Expect?

Getting your application approved today at an apartment community seems more complicated today than at any other time.

Apartment management companies are imposing rules and requiring more documentation than ever before. Running a full background and credit check can be a quick process. And many properties can approve/decline a renter in mere minutes. Other times, it may take days to find out.

According to Rentkidz, here are the criteria that many large apartments in the Woodlands, TX are requiring before approval or denial. Renting a private home or duplex might require much less red tape. When you’re dealing with an owner or landlord, they are willing to overlook specific criteria.

What is An Apartment Application

According to, an apartment application is a document the potential renter must fill out in its entirety that is used to make a judgment on a particular renter. All of the information provided by the applicant will be assessed to determine whether or not he/she will be approved or denied.

The renter will be asked for the following criteria:

  • Personal Information

The landlord will need first and last name, plus your phone number and a current address. They may reach you by email or text message as well. The apartment manager will want to check your previous rental history.

  • Social Security Number

The social security number will be required when you fill out the documentation. The landlord will want to know who you are.

If you have been convicted of a crime, this can severely impact the process. If you know that certain charges will appear, it is best to bring this up before any checks are performed. Many apartment management companies have strict rules that will result in immediate rejection. And you won’t get your application fee refunded.

  • Car Information

If you are bringing a vehicle with you, they will ask for the make and model. Also, be sure and write down your license plate information too. Car insurance may also be requested. The landlord doesn’t want any cars not belonging to guests parked in the community for an extended period.

How Much Money Do You Make

Renters Must Make the required income. The majority of larger apartment communities now require renters to make at least 3.5 times the monthly rent. Applications that are submitted that do not meet the requirements will be denied.

Acceptable proof of income will usually include a tax return, pay stubs, or 6 months of bank statements showing deposits for those who are self-employed.

If you just received a job offer and didn’t have a valid proof of income, a letter from your employer should be sufficient.

Emergency Contact Information

If for some reason, there is a medical emergency, the landlord will want to be able to contact your closest relative.


If you don’t have a rental history or you don’t quite meet the income standards, you will need a co-signer. This might be a parent or a close acquaintance.

Previous References

You might need to provide a reference so the landlord can make sure you paid your rent on time and how you acted as a tenant. A professional text is sometimes also requested. This is used to confirm employment.

The apartment management companies or landlords will most likely then run your credit. Contrary to popular belief, they usually don’t use the typical credit bureaus to search. They have their own specialized credit company they work with.

Credit scores might impact your application. Lower scores might indicate that you are not dependable. If a landlord has a choice between a tenant with a lower rating, and one with a higher one, who do you think they will choose?

Clean Rental History

Many prospective residents are misled into thinking they must have a rental history. No rental history is acceptable at the majority of apartments.

Here are the most common rental issues renters may encounter.


An eviction occurs when the renter is forcibly removed from the premises. Usually, this is because of unpaid rent. The landlord will have to file a complaint with the courts, and hire a constable to remove the tenant. However, there are other reasons renters can be evicted.

  • Renters break the terms of the lease. If no dogs are allowed in the apartment, and the renter tries and sneaks in a pet, this could result in an eviction
  • All residents can have guests. However, if these guests stay over an extended period, they must register with the apartment community. Many times tenants will try and house a friend who has a criminal record. Actions like this can result in an eviction.

Broken Lease

According to a broken lease occurs when the renter leaves the apartment without fulfilling the terms of the contract. The overwhelming majority of apartment communities will immediately reject your application with this black mark.

It’s not good enough to offer to pay a double deposit. Typically the only solution is for the renter to contact the management company of the previous apartment community. Once the debt is paid off and reported to the credit bureaus, then this should rectify the issue.


A judgment occurs when money is owed to an apartment by the renter. However, the renter has not paid off the debt. For example, If the renter damages the apartment or incurs fees that exceed the security deposit, a bill will be sent after the lease has terminated. If the renter fails to make a payment, the landlord can then sue the tenant for these fees.

In almost all cases, once the debts have been paid, the renter is once again in good standing. And this will be reflected on the credit report.

Low Credit Score

More and more apartment communities are now using credit scores in the overall approval process. Credit card charge-offs and unpaid telephone bills can severely impact a score. Bankruptcies will also tarnish credit.

Management companies aren’t willing to take risks for many renters who don’t meet the minimum score.

When you apply for an apartment, be sure to have all of the documentation you need ahead of time. There is a litany of information. If you don’t have all the materials, this will delay the process.