Bad Credit Loans Blog

Great Tips and Advice for Managing Your Money

An unexpected expense comes up.  You don’t have enough to cover it in you “rainy day bucket.”  So, may be you’ll get a Personal Loans paid over several biweekly or monthly installments.  Loan contract is signed and you are handed a check or cash.  All is good. 

personal loan approved

Reality sets in

Imagine you got a two year Personal Loan.  Then, as the installments become due, you may wonder “Two years is a long time and I’ll be paying all that interest.  How can I save some money here?”  I don’t blame you.  Two years is a long time to be paying on a debt.  Even if you have “good” credit, a $1000 installment loan over 24 months at a 10% interest rate, assuming that the lenders does not charge other fees like credit investigation fees or loan origination fees (which financial institutions may charge), may cost you about $107 at the end of the term, if all payments made on time.  Monthly payments would be about $46.  It won’t take that many months before those monthly payments start “getting old.” 

So, how do you save some pennies and shorten the term?

Because a lot of the Personal Loans are amortized, most of the interest is payed towards the beginning of the loan.  In these types of loans interest is paid on every pay period before any portion of the payment is applied to principal.  As interest is calculated based on outstanding principal, the lower the principal balance will lead to a lower interest being charged.  Therefore, if you make extra monthly payments, in addition to your regular payments, and you request save moneythat the extra payments be applied towards principal (thus causing the principal to get reduced faster), then you will end up paying less on interest.  Also, by paying extra towards the principal the term will be shorter.  Even if paying extra reduces the term by just a couple of months, that’s a couple of months where you will not need to make payments.

 

But, what if I don’t have much left over income to pay extra?

Every little bit helps.  Don’t be discouraged if all you pay is an extra $10.00 a month.  For a $1000 loans, for example, if you just pay an extra $10.00 a month towards principal, you will reduce the principal by $100 in just 10 months.  That’s $100 in principal that you won’t be paying interest on. 

seal of ohioIn July 2018 the Ohio legislature passed Bill 123 intended to curve the fees charged by companies that offer Payday loans and Title Loans.  This bill was then signed by Governor John Kasich.  As to when this bill will become effective, I can only guess January 1st of 2019.  The bill mostly addresses the Ohio Short-Term Loan Act with adjustments to that existing law.  However, it also tweaks the Second Mortgage Loan Act and the law regarding Credit Services Organizations.  Although we would not advocate cash advance loans as the best financial option, we do disagree with most of the news sources which are declaring this a victory for consumers and how much money it will save consumers.

Will it really save consumers money?  A little background first.

Short term loans have been around long before the Ohio legislature agreed to approve licenses for lenders to provide payday loans.  Before the regulated Payday loan laws in Ohio, if a person needed some cash and didn’t have a friend or relative to help or a bank to approve him for a loan, then that person could choose to not pay the bill or borrow money from an unregulated and/or untaxed entity or individual.  One of the underlying reasons for the state of Ohio providing payday lending licenses was that it provided the state with the means to tax short term loans that were already being used by the public.  Another reason is that it provided the consumer with a way to access short term loans from safe and regulated lenders or entities.  So, licensing lenders to provide cash advances or short term loans never had to do with it being the best financial option or the cheapest option out there.  It was just a practical thing to do Payday neonconsidering that consumers were already using this type of product with or without the blessing of the government. 

 

 

Will it really save money for consumers?

The reason for the claim that the new law will save consumers money is that lenders will have to charge much less for short-term loans, if they want to offer such a product at all.  Payday lenders right now charge APR’s in the triple digits.  Under this bill they are limited to an APR of 28%.  Hurray for consumers right?  But consider what is being expected from lenders.  To go from charging a triple digit APR’s to a 28% APR and, yet, remain in business, is unrealistic.  The claim that consumers will save money under this new bill is “true.”  But, not for the reason the news media would like to have us believe.  The reason that consumers will save money under the new law is because there will be very few lenders offering short-term loans in Ohio.  So, this is how consumers will save money: with no supply of credit in the form of short-term loans, consumers can not borrow, consumers don’t owe that debt, and, therefore, yes, they will save money.  But this may come at the expense of many consumer not paying some bills or expenses.  Those few lenders who remain offering payday loans will, in my opinion, be the ones for which such loans are a side business.  Furthermore, those types of lenders will be forced to be much more picky as to whom they loan.  A 28% APR is not leave much to make up for loses related to serving consumers with bad credit.  Therefore, lenders will take less risks in lending to people who have bad credit.  loan shark My fear, and we are not endorsing payday loans as the best option out there, is that this “heavy handed” approach that the Ohio Legislature has taken will only lead consumers to borrow money from unregulated individuals and entities. 

Need Money, But, Not A Payday Loan?

If you have bad credit and need a loan, America’s Loan Company may be able to help with an affordable Personal Loan.  Although approval is not personal loan chalkboard 480x360guaranteed, we may be able to help even if you have bad credit.  We can lend as little as $500.00, if that’s all you need, with a term of 6 months to a year.  Our loans are always made to fit your budget and help to not get you into a cycle a debt, as may happen if you get the typical payday loan or title loan.  You may apply at our website, www.americasloancompany.com, or by coming to any of our offices in Ohio.  We also report your loan payment history to TransUnion to help you improve your credit.

How time flies.  One day kids are celebrating the end of the school year and parents are trying to figure out how to keep kids out of trouble for the next 2 months.  None the less, as parents we enjoy summer basking in the sun, going vacations, watching baseball games, among other activities. Then, in the blink of an eye, it’s time to start thinking about going back to school.  If you are anything like me, the beginning of the school year is “the most wonderful time of the year,” and time when the children start wondering why mom/dad are smiling all the time.  If you nothing like me, you must be a student. back to school happy parent

Not So Wonderful 

Okay.  So, may be the beginning of the school year is not all wonderful.  Although we may look forward to giving the kids something to do by going back to school, the beginning of the school year also brings expenses.  And, as we all know the retail stores make sure we don’t forget that it’s back to school time.  From book bags, clothes, tennis shoes, computers, it all add up to a big “cha-ching”.  And if you have a college student, let us not forget the dorm room fridge and books expenses among other expenses. 

back to school shopping cart

Need Money, But, Not A Payday Loan

If you need some funds to help with back to school expenses, America’s Loan Company may be able to help with an affordable Personal Loan.  Although approval is not guaranteed, we may be able to help even if you have bad credit.  We can lend as little as $500.00, if that’s all you need, with a term of 6 months to a year.  Our loans are always made to fit your budget and help to not get you into a cycle a debt, as may happen if you get the typical payday loan or title loan.  You may apply at our website, www.americasloancompany.com, or by coming to any of our offices in Ohio.  We also report your loan payment history to TransUnion to help you improve your credit. back to schoo cash

Yes it is summer, officially June 21st.  Time to enjoy the sun, warm weather, some rain (I’ll take rain over snow), and to plan a small vacation.  Whether you are planning a short trip to your nearest amusement park or a more financially significant vacation of several days, the costs can accrue fast.  Don't belive me?  Checkout Disney vacation packages on their website and you’ll scratch your eyes to make sure you seeing right. vacation beach

I Need A Loan For A Vacation and Have Bad Credit

America’s Loan Company does offer Personal Loans, from $500.00 to $3,000.00, for people with bad credit.  These loans have terms between 6 months to 5 years and your first payment is not due till about 45 days from date of contract signing.  This means that you make borrow $500 to a one day trip or mini vacation and not have to worry about the first payment till just about 45 days.  Furthermore, our terms allow you to have payments to fit your budget.  So, no need to get into a cycle debt with Payday loans.  To make it even better, we report payment histories to TransUnion to help improve your credit.

I Have Bad Credit.  Is My Loan Guaranteed?

Our Bad Credit Personal loans are geared to people with less than stellar credit scores.  However, this does not mean that your loan application is guaranteed to be approved.  We do have certain guidelines that are followed to prevent loss.  This means that although we may loan to most people with poor credit, there are some whose credit history is too damaged for us to approve the loan.  But, please, don't let that discourage you from applying for aloan with us.  It may be tempting to just get a Payday Loan or a Title Loan.  But, we are pretty comfident that loan terms will be better for you.

happy sunCould My Credit Score Cause Me To Be Declined For A Personal Loan?

No.  We don’t look at credit scores when determining approval for Personal Loans.  Instead, we look at the entire picture and payment history, among many other factors.  For instance, an applicant may have a credit score of only 600 due to credit cards that went into default many years ago and a bankruptcy discharged.  But this same applicant may have a great history with credit cards in the past few years.  The fact that a person is showing a good payment history in the most recent years, would be a great plus in our view and greatly increase the likelihood of being approved. 

America’s Loan Company can help Ohio residents with Bad Credit Personal Loans.  We have three branches, one in London, Ohio, West Jefferson, Ohio, and Logan, Ohio.  Even though we have 3 locations at this time, we are able to help Ohio residents who don’t live near any of our branches with Personal Loan needs, regardless of poor credit.  We are able to do this without you having to come to any of our branches.

I Live Too Far.  How Do I Apply For A Personal Loan?ohio map

You live in Ohio, but live too far to driver to our branches?  No problem.  Loan applications may completed through our website at www.americasloancompany.com.  This application is secured.  Once you submit the application, it gets sent directly to the branch that you chose to process it.  As far as, which branch to choose, it is up to you.  One of our Personal Loan Managers will be contacting you soon after. 

How Do I Send Documents Needed?

For Personal Loans, we require some documents before a final decision is made.  These are last two most recent bank statements, a most recent proof of income, ID, Social Security Card, and a Personal Check.  However, there is no need to bring these in personally.  These may be either E-Mailed or faxed to the office you chose to process the application.

How Do I Sign My Contract?

loan agreement Once the Personal Loan application is approved, there 2 options.  One, sign the loan contract at any of our branches.   Two, we E-Mail a copy of the contract, secured by a password.  You may then print the loan contract, sign it in front of a   Notary (most banks have notaries that do this for free or for a very small fee),  then E-Mail or fax all contract pages back to us.

 

Now That I Am Approved For The Loan, How Do I Get The Funds? 

You do not need to drive to any of America’s Loan Company’s branches to get your Personal Loan funds.  Once we get the contract signed, you may come to any of our branches to get the funds or we can direct deposit the funds directly to your bank account.  hand cash hand

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