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How Short Quick Loans Help and Hinder Your Credit Rating
There are people all over the world struggling to make ends meet and at times they need to fall back on short quick loans. These are not as dangerous as people think but there are some risks in them. Most of those risks are on your credit rating but there are actually times that these loans can help your credit rating get better.
Helping Your Credit Rating
The benefit behind these short quick loans is that you can prove you are responsible with your money. This is done by taking the loan and then paying it back on the due date. There are a number of options that you have to help remember this. You could set up a direct debit with the company, which is something that may will actually ask you to do now. You could also look at setting up a standing order for those companies that do not ask you to set the direct debit. If you need to pay the money back without a bank transfer, you will need to set a reminder in your cell phone or your diary for the repayment of the short quick loans.
Lenders are more likely to loan money to you if you are able to prove that you are sensible with your spending. Paying the short quick loans back on time will show that you consider your debt important and make it a priority; this makes you seem like a lower risk that you would be if you had no credit history.
There are also no credit checks for the short quick loans, which will also help you. The problem with credit checks is that the companies leave footprints on your credit report. By not having anything there, the companies will not realize if you have been unapproved for the loan because they will never know that you have applied.
Hinder Your Credit Rating
The problem with the short quick loans is that they are for the short term and it can be very easy to forget about paying them back. Another problem is that you could end up overstretching your budget because you have not considered the amount of interest that is going to be added on that month; you could find that you have to pay an extra L200 or L300.
By not paying the money from the short quick loans back on time, you will look like a high risk because you cannot even handle your debt for the one month; lenders will worry about the installment loans.
Something else that you will need to be careful about with short quick loans is taking too many out in a short space. This is one way that lenders will see that you are overstretching your budget. It can be easy to find that you need another loan to pay off the first one but you should consider other options when you budget. Work out how to pay the loan back, even if it means you do not have as much spending money for one month; at least you will have more to spend in the next month.