Whether you need quick cash to pay your holiday debt or car repair costs, the first option which will come to your mind is probably a personal loan. Personal loans don’t come with big interest rates as compared to other bank loans. Additionally, it is easy to apply for the loan and get it at a time when you need it the most. It has gained ground around the world and almost everyone is going for quick loans to settle urgent issues. As much as it seems a very attractive option, do you know the negative side of easy loans?
The impact of easy loans on your credit score
It is generally not bad for your credit score. First things first, what is a credit score? Well, it is a number that shows how likely you are to pay a debt. It is generally 35% based on your payment history, 30% based on the debt you owe and 10% based on the number of credit lines you have.
It is very important to service your loans according to the set out schedule. It is required of people who owe money to make payments on time and according to the loan agreement. Failure to which it will have a negative impact on your credit score. A positive impact on your credit score demonstrates that you can handle debt responsibly. If you default on your loan, your credit score will be hurt and you will be listed with a credit bureau.
A default on an easy loan can get you listed on a credit bureau
It goes without saying that default on a loan will lead to not only a poor credit score, but also listing in a credit bureau. You will not be able to get any loan from any bank, financial institution or lender if you’re listed. As much as that might be within your knowledge, what really is a concern is getting listed for an amount of dollars that is not worth it. Imagine having to struggle with a poor credit and losing huge opportunities because you defaulted on a couple of bucks’ loan.
This is a major setback of going for easy loans that is often overlooked. However, if you’re already been listed and you’re trying to get back into your feet, it is going to be a long journey but you will still make I to the top. Bottom line, be careful not to default on an easy loan.
Easy loans usually have short repayment periods
Unlike bank loans and other types of loans, when you get an easy loan, you will be expected to pay back in a month or so. Other conventional lenders can give repayment period of a number of years. It is very unlikely to get lenders who will give you an easy loan to be repaid in over 3 months. Therefore, if the repayment schedule does not suit you, you will want to consider other options.
You can get scammed easily
There are many players in the world of easy loan lenders. Sometimes, you can find yourself in a dubious deal because a lender was offering very attractive loan terms. Therefore, if you have to get an easy loan, tread carefully and know who you’re doing business with. Check out Need Money Now, New Zealand’s top legal easy loans provider.