Christian High Risk Credit Loan
If a Christian is looking for a high risk credit loan, one can assume that they are in a difficult situation already. Perhaps poor choices were made and a mountain of debt piled up because of irresponsible use of funds. This would not be surprising, considering how easy it is to get plastic. Even young college students are continually presented with card offers, and it is a rare person who is able to use this new-found freedom wisely.
Advertisers continually work to hammer home the idea that we deserve to own bigger, more expensive cars, extensive electronic equipment, new or more luxurious clothing, home accessories and jewelry. Even if an individual does not purchase any big-ticket items, it is all too easy to watch innumerable small purchases add up become a huge problem. At times, of course, the debt may be due to circumstances beyond one's control, such as debts resulting from medical expenses or natural disasters. However, many times these problems are the result of choices which have been made. Either way, a great deal of hard work will be needed to restore a FICO rating. Meanwhile, debts must be paid, and a person may have to seek out a allowances to help keep himself or herself afloat until the situation stabilizes.
Unlike previous funds which were all too easy to obtain, getting a floater may prove to be somewhat difficult. Not every banker is willing to take a gamble. It is possible to find places which are willing to grant the dollars, yet this will almost certainly be at an extremely brutal rate of interest. A better rate may be able to be obtained if an individual can secure the floater with some type of collateral. An unsecured allowance is less frequent; these have an even brutal-er rate of interest! This is only reasonable, though, considering the chance taken by extending a floater to an individual who is in this type of situation. Besides, look on the bright side of this picture -- at least the person in this dilemma can get funds. By making continued on-time payments, he or she can begin to rebuild a FICO rating. Along the way, as the rating improves, an individual may be able to refinance at a better rate.
Although many sources of secured or unsecured debts can be located with an Internet search, be aware that there are many organizations which engage in fraudulent activity as well. To protect the already strained situation, be careful never to send money in advance of obtaining a note. Although some bankers will require some form of collateral, this is usually in the form of some item of value such as a house, car, or jewelry. However, legitimate investors will never require an individual to send money as collateral or insurance that the note will be repaid. Avoid such situations, for they are probably involved in some type of financial scam.
Unless one wants to continue to give a great deal of his or her income towards interest payments, some fundamental changes must be made. There is a great deal of information online about frugal living and about establishing healthy spending practices. Libraries offer free books and other materials on the subject. Most pastors can recommend certain monetary principles, or at least direct an individual toward reputable authors who deal with these matters. Many banks offer free financial consultations to their customers. (Note: One does not have to be wealthy to benefit from such services.)
In broad strokes, there are several major principles which will help an individual use his or her finances wisely. Recognize what true wealth is, and where it comes from. As James 1:17 states, "Every good gift and every perfect gift is from above, and cometh down from the Father of lights, with whom is no variableness, neither shadow of turning." Now that a person knows where wealth comes from, it is always helpful to know where one's dollars are going! Keep a record for about two weeks of every incident in which money is spent. This will give a sense of where excess 'leaks' may be happening. Set at least a general budget for the week's expenditures. This may be fine-tuned as time goes on, but this budget gives one a starting place from which to work. Needless to say, getting used to using cash for any purchases instead of a card is a wise decision. Most people spend less when they are actually seeing the dollars exchange hands. Also, set aside some portion of the income for savings. Even small contributions add up, and eliminate the need for seeking funds in the future.
Determine to set aside as much as possible to pay off any debts. Try to pay more than the minimum payment which is due, as this will radically change the amount of interest that will be paid. As one account is paid off, use the same payment which used to be put toward that debt toward other debts. In this way, the payment process will continue to accelerate until all debts are paid. Once debts are paid and FICO scores are becoming re-established, keep debt at less than 25% of your limit. This can prevent future woes and also helps improve the FICO score, for bankers view this as an indication of self-control and responsible use of funds.
Christian High Risk allowances LendersInflated interest notes are not the neighborhood banks with the sparkling fountains or beautiful landscaping out front of a number of their buildings. Lending sharks are not banks because banks have stockholders and stockholders avoid dead beats and would rather go open an account at a credit union than take on any unnecessary financial chance, especially in the present financial atmosphere. The companies that will float small or large amounts of money to people who already have negative FICO scores and are asking for more are backed by investors who relish taking a chance on making twenty percent or more on their investment money. If a person has a poor FICO score, getting an agreement isn't necessarily hard to obtain, but it's going to be very expensive to possess. And the high chance lenders are smacking their lips in anticipation of a big profit.
High risk sharks love secured floaters because of collateral. That's why so many car dealerships can announce that no one will be turned away from buying a car because of poor history. The investors who love to take chances are pumped up over the chance to float a troubled individual money for a car, usually at three or four percentage points above the normal buyer because they know where the buyer lives and a flat bed truck is waiting to take the car back at the first sign of a serious default. Now in reality, those who love to take chances don't want to take the car back because it's a losing proposition for them, but still the chance isn't as bad as the signature note type of agreement. But the numbers are in favor of these lenders because if they don't make money, they are quickly out of business!
So what is the profile of the person who would use one of the many strip mall companies across the country that have national names that are easily recognizable? For the younger demographic, the individual might be a college student, getting an education without the help of parents. The floater agreement could be for lodging, food or anything related. Perhaps a young couple just recently married wants to buy some furniture for an apartment and one of them has a poor FICO history. A husband may have his heart set on a bass boat or a wife wants a new wedding ring or perhaps it is for braces for a child or a powered wheelchair for an aging parent. An unsecured signature agreement provided by high risk lenders can be for anything, and many companies don't require the reason for the agreement. Simply a signature on the contract promising to repay on time is required. But it is also the reason for crazy interest rates, sometimes being as much as thirty percent!
The purpose of advertising, whether the media is in America or around the world, is to get people to be unsatisfied with their present state. Unsatisfied with the two year old car, unhappy with the present dish washing liquid, sad about the house one presently lives in. Once that dissatisfaction is created, it's just a waiting game until the unhappy consumer breaks down and does the inevitable. When anyone becomes so unsatisfied with the present condition and the solution seems to be buying something new, the high risk note they are grinning with delight because somewhere along the way they will get to say yes to a note for something not really needed but very much desired. "Not that I speak in respect of want; for I have learned in whatsoever state I am, therewith to be content." (Philippians 4:11)
So think of all the things purchased in life because of dissatisfaction, and think of all the things that really aren't in the budget but they are purchased anyway. Often too many commitments for too many things not really needed bring financial ruin to families across the country. Commitments brought on by the curse of dissatisfaction or greed or pride. So while local banks have the good sense in most cases to say no to over-committed individuals, investors are willing to take the big chance and basically give agreements to stupefied individuals too numb to know the pain being self-inflicted. And the beat goes on. In the meantime homes are lost, marriages break up and the advertisers win another round because keeping up with the Jones' is too high maintenance.
Chance investors may be some of the friendliest people on the planet and they may provide a good service for a minor percentage of the Christian population. For example, if a person or family has a horrible FICO score in the past and have basically become outcasts of the FICO world, a fresh start might mean having to get a small advance with one of the many chance options online or down the street. Paying back a minor advance on time each month can go a long way towards repairing a flawed fiscal history. But generally speaking, funding companies offering to give more buckets of water to already drowning customers may be lawful, but possibly not moral. Perhaps the time is right for the reader of this article to honestly do a thoughtful, honest and thorough examination of life's priorities. After all, someone once said that one never sees a hearse pulling a U-Haul trailer.