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Can Payday Loans Be A Remedy To Credit Issues?
Can Payday Loans Be A Remedy To Credit Issues?
Credit issues can prevent people from obtaining credit just when they need it most. Is it possible that payday loans can actually be a remedy to some peoples’ credit issues?
Victoria,
London,
United Kingdom
(prbd.net)
04/02/2011
Credit issues can prevent people from obtaining credit just when they need it most. Is it possible that payday loans ( http://www.cashchoiceuk.co.uk ) can actually be a remedy to some peoples’ credit issues?
In order to identify if there is any truth in this claim the first step is to examine some of the facts and myths when it comes to credit rating and credit checks.
There are numerous misconceptions being circulated with regard to credit checks, and many people are happy to learn how to separate the myths from the realities. Where credit checks and payday loans are concerned, one may wish to consider the following information:
Is There Such a Thing as a Credit Blacklist?
Contrary to the impression many individuals may have, there is no such thing as a list that contains the names of people who will never be able to obtain a mortgage or loan. Such a blacklist does not exist. Loan companies use the services of 3 United Kingdom credit check companies in order to determine each applicant's credit history. If one has a pattern of skipped or late payments, he or she will naturally have a more difficult time obtaining a loan; however, this does not mean the person will be forever blacklisted from applying for credit.
Credit Problems Due To Divorce
This is also a myth which many people erroneously believe with regard to credit checks, the only way in which another individual can affect one's credit score is if there is still a legal marriage in effect, or if both names are on certain accounts. Where divorce is concerned, all one must do is become disassociated with his or her former partner. Once this has taken place, the other person's credit history will have no bearing on the credit history of his or her former spouse.
Loan Application Process
One issue that is does not fall under the blanket of common misconceptions is the fact that a credit check will be run on any applicant that applies for a loan. In only the rarest of circumstances can a loan be obtained without the applicant having to agree to a credit check.
Issues That Affect Credit
Many people are surprised at the intricate details that can be uncovered when one's credit history is pulled. Sometimes it is the most seemingly insignificant issues that have a major bearing on whether or not one acquires a loan. Mobile phone bills, and whether or not one is registered to vote are good examples of these. This is why one should always attempt to pay bills in a timely manner, even if this means obtaining a pay day loan every now and then.
The Effect of a Rejected Loan
Anyone who has missed even one small payment on a bill can be turned down for a loan. In this case, it is better not to apply again until a minimum of 12 months has passed. This is due to the fact that a rejected application stays on one's credit report for a full year, and when a prospective lender sees this, he or she is likely to turn down the applicant, as well.
Checking One's Own Credit
Another common misconception with regard to credit is that if a person pulls their own credit report, he or she is ruining the chance to be approved for a loan. In reality, the exact opposite is true. It can be very beneficial for a person to check his or her own credit. Among other benefits, it is a way in which mistakes can be corrected and forgotten bills can be paid before they are seen by prospective lenders.
For instance, if a person checks his or her own credit and discovers a bill that was forgotten, the person can get a payday loan an quickly remedy the situation, whereas if the individual is unaware of the forgotten bill, the loan company may find it first, and turn the applicant down.
In conclusion, surely it is far better to be on top of one’s credit checks and if the situation calls for it even avail of payday loans ( http://www.cashchoiceuk.co.uk ) to avert a personal credit crisis.
Cash Choice is one such payday loan company who will be pleased to help customers in avoid any personal credit crisis.
About
Cash Choice is a business set up to help you with any financial emergency by offering you a cash advance. We realise that as organised as a person might be, there are situations that can take you by surprise.
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