Christian Bad Credit Emergency Loans
Christians with a bankruptcy can get bad credit emergency loans, also called hard money financing. Individuals who have had a history of foreclosures, delinquencies and default can acquire funds quickly through payday lenders or same day lending institutions. If a person has a low credit score or a questionable financial history, obtaining traditional dollars may be next to impossible. However, a medical emergency, unexpected car repair or higher than normal utility bill will not wait for the debtor to clean up their FICO report. Ideally, someone who has had a bankruptcy or foreclosure would want to avoid accruing new debt until their blemishes have been improved. However, if acquiring short funding is the only way to reconcile outstanding expenses, then obtaining quick monies can help the individual make ends meet.
Pay day lending institutions are ideal, because they require less documentation and will extend money to individuals who do not qualify for standard financing through a bank or savings. All institutions need collateral to get the ball rolling. Banks and automobile dealerships offer financing that collateralize a house or a car. This means that the borrower's house acts like a promise that they will pay off the debt. If the person does not pay off the obligation, the bank will take the house back in foreclosure and sell it to someone else. The institution does this to get back the money they put out in the first place. In the same way, the car dealership will repossess the borrower's car if he fails to pay the monthly finance payments. The interest they charge is a fee for taking the money, when the buyer did not have it for the purchase.
Same day lending, is obviously financing that can be processed in twenty four hours. The borrower will first fill out an application for dollars. This application will not request a credit report, as most people seeking funding have poor scores, so requesting them would do the same day institution no good. Proof of employment and salary, however, can give the institution a good idea of whether or not the debtor will be able to pay the monthly payments. Applications will also require the person to submit banking information, like a checking account number and the routing number of the bank. There are two reasons for this. The same day institution can directly deposit the needed cash into the borrower's checking account. But, can also pull directly from their bank, garnish wages and usurp incoming payments should the borrower become delinquent in repaying the company. The Christian has to sign a contractual agreement to this affect or the company will simply deny his application for financing. Also, involved in the contract is the borrower's agreement to the note schedule.
Immediate monies are usually secured with the title of a auto, the expectation of a paycheck or a pending income tax return. When a vehicle title is used for security, the debtor will need to show proof of ownership. In the event that the financing should go unpaid, the hard money company will repossess the item, per the contract agreement signed by the borrower. The monies will not exceed a percentage of the items market value. When the promise of a pay check is involved, the person will submit up to three months of pay stubs to prove the average amount of income each pay period. These types of situations are especially helpful when a vehicle breaks down or a trip to the emergency room occurs between two pay periods. If someone only gets paid once a month, waiting twenty days to get their auto from the mechanic just is not realistic. Showing pay stubs and having cash in their checking account the next day makes it possible for them to go to work the next day and continue life as normal. "Blessed be the LORD, that hath given rest unto his people Israel, according to all that he promised: there hath not failed one word of all his good promise, which he promised by the hand of Moses his servant." (1 Kings 8:56)
Using a future income tax return to secure dollars is quite common. Should the landlord threaten eviction in January, a renter simply may not have time to wait until March for their income tax return. This is when the company can help him out of a tough bind by loaning the funds in advance of the income tax return. These situations are getting fewer, as electronically filing taxes is growing in popularity. However, it can still take up to six weeks for an electronically filed return to be deposited into a tax payer's bank account. In emergency situations, six weeks is simply too long to wait. In both this case and when using future pay checks as security, the institution will gain possession of the return or wages when it comes in.
This is financially worthwhile for the same day lender, because they typically charge more interest than conventional firms. The frequency of default is much higher among quick funding than bank financing. For this reason, the higher interest rates offset the potential losses resulting from a debtors default. In addition, the person has fewer options, so cannot afford to be picky about interest rates. However, institutions certainly fulfill a much needed role in helping individuals make ends meet in the case of crisis.
Christian Bad Credit Signature MoneyA poor credit signature loan is a unsecured debt that does not require the individual to have good credit history. Many consumers today have found themselves in tight situations because of rising fuel and food costs or because of high interest rates. However, this type of funding may have higher than usual interest rates associated with it. A company may see a person with a bad financial history as a high risk. Businesses may be able to provide some options on repayment terms and interest rates for those people who are considered high risk.
Consumers who have questionable monetary history might want to consider getting dollars in order to pay down and pay off debts. High interest revolving charge accounts associated with charge cards are hard to get paid down by just making the minimum monthly payment. In order to see any substantial difference in the pay off balance a consumer needs to be able to send in much more than the minimum due. Too many high interest accounts can lead to a person having to file bankruptcy especially if unforeseen circumstances make it impossible to stay caught up. Once a person gets behind on charge card payments it is almost impossible to ever get caught back up because companies tack on late fees, over the credit line fees, and higher interest rates.
Unsecured lines do not require any security or collateral and borrowers do not have to worry about having high FICO scores to obtain an approval. Collateral is required for types of things where people want something of value in case the borrower defaults. Collateral could include property, land, or assets of value such as jewelry or an automobile. A poor credit loan does not require borrowers to own a home. However, an applicant will need to provide the organization with a current address, employment information, checking and savings account information, and monthly salary amount. An applicant will need to provide a social security number, date of birth, a contact number, and an email address.
Qualifying with some companies may require that a person has a secure past employment history and be with the current employer for at least two years. The debtor must have a current employer before he or she can be approved for funding. Borrowers who are currently involved in bankruptcy may be turned down for dollars. However, having a bankruptcy on financial history that goes back a couple of years should not keep one from getting the dough. People who are self-employed must be able to prove that they have a secure income amount each month or they may be turned down. Today creditors can not do the same things that they could do during Bible times when a person defaulted. "Now there cried a certain woman of the wives of the sons of the prophets unto Elisha, saying, Thy servant my husband is dead; and thou knowest that thy servant did fear the LORD: and the creditor is come to take unto him my two sons to be bondmen" (2 Kings 4:1). They can pursue the person to repay the debt and can put the account information on one's credit report making it hard for the individual to obtain financing anywhere else.
Companies offer other types of situations for people such as home, automobile, cash advance, debt consolidation, business, and student debts. The requirements for money are similar for other types of security. The main difference between conventional financing and poor credit is that there are higher interest rates for those who have bad history. To avoid paying higher interest rates a person will need to do some financial repair before applying for the dough. Some organizations have information available on doing repair that can be very useful and instrumental in raising FICO scores.
Credit repair should be started by obtaining a copy of one's reports from all three major bureaus. A consumer should look over each report very carefully and highlight any errors found. A dispute form should be filled out for each incorrect item highlighted. Any paperwork that could prove the accuracy of disputes should be included when sent to the major bureau. After receiving the disputed information the bureau will send the information to the creditor in question. If the creditor can prove the accuracy of the report then the item will remain on financial history but if the creditor does not answer back then the item will probably be removed from the report. A individual should give this process some time before applying for dollars.
One of the reasons that lenders are now offering money for people with a questionable history is because there are so many Christians who have had life problems. Everyone's story is different. Some people are having difficulty because they are overextended and all of their cash is going to pay bills and they have nothing left for emergencies. Now that gas prices are so high their situation is much worse. Others may have high medical bills because of an illness that has made it impossible to go to work everyday. Others have lost a good job and can not find another one that pays very well. Quick funding is a good option for those who just need a little help to get over a crisis or for those who just need a second chance.