Payday Loan Fairy

I just paid off my unsecured loan with rate of 17.99%. And i want to borrow another unsecured loan later. And my ? is how long will it take to reflect my credit history that will show that i dont have any debt. And also, if i borrow money again will it also decrease my rate....cuz i paid off my debt on time...

It will take between 30 and 60 days for the debt to show paid off. That will help your credit score.

If you borrow money again, you may get a better rate because your credit score should be higher than before.

2008-02-29 16:36:33 by MGL

I am working on starting a small business soon. I am financing a big chunk myself but need a small business loan for more than half of the start-up cost.
I have been told by different professionals out there that with my age, credit score, and years of established credit I would easily qualify for an unsecured business loan, meaning that I don't have to put my house and other assets on the line. This is obviously a huge benefit, but aside from an APR higher than one on a secured loan, and expensive loan fees, what are the risks and downsides of an unsecured loan? Also, do you know of any financial company who offer such loans fee-free?

Serious answers only please, and thanks in advance for your help.

The biggest loop hole with unsecured loans is they will usually ask you to sign a PG - Personl Gaurantee. This means that even if the business folds you still owe the money.

This loophole is outside of the usual 'Limited Liability' so my advice is NEVER sign a PG in your life.

I got stung in one of my previous businesses by a partner and 4 years later I am still paying back the money even though the company doesn't exist anymore. Since then I have made a stand and refused to sign one and it's amazing how many businesses will be happy to put a line through it.

The issue for you is which is it going to be? No one will lend you money with no gaurantee of getting it back - would you? If you that sure of your business plan and financial projections then I suggest you back yourself and get on with the business.

Good luck!

2006-09-15 13:04:29 by Amorican

I am 105K in debt(mortgage, student loan, car and the unsecured loan) and lost my former job due to lack of work. I got a new job but I am out 15K/yr. Through much juggling, I am paying off everyone except the unsecured loan on which I am paying 30/month(they want 260/mth) and they are unhappy I am paying them so little and threatening to sue me. I am trying to sell the house to pay off the mortgage and the personal loan and this is still at the original lender level. I am hoping I will get to work with a collections agency first since I can offer them the 30 I am now paying the creditor and when I sell the house I can pay the bill in full and have the credit bureau remove the blotch from my credit by showing evidence of payment. Do they go to collections or sue first?If they do sue,will they garnish my wages or freeze my checking account(no savings) or both? How does the debt collection process work on an unsecured loan?
Tried debt consolidation but my house is not worth enough to do it and having other debt attached to it would reduce my chances of selling the house and paying off the mortgage and the personal loan. I am really looking for info on how the debt collection process works,not how to get out of debt. I have that part figured out unless I get sued. Thanks
Thanks Taja but I am asking what the collection process is. I owe 105K out of which only 9K are unsecured debt. I am paying everybody except for the unsecured debt (to preserve my assets) and paying this unsecured creditor 30 a month hoping to sell my house to pay of the mortgage and the unsecured loan which will get rid of 64K off my debt and put approx 4 K in my pocket to move to an area with a better pay labor market. I am trying to find out (by learning how the collection process works) if I am going to have time to get this done before I have to worry about their coming after my wages and/or checking bank account. In other words, if I can work with a collection agency to which I can offer payments and pay the 30 I am now paying until I can sell the house. I already tried debt consolidation and I can't get a loan for 105 K with a house that is worth 79K as the only collateral. The rest I owe is my car and student loans which must be paid or they will be worse than this creditor.
BBOYBALL: My mortgage is in perfectly good standing since I pay that before I even buy food. It is the only assett I have and I want to move to an area where I can work without having to commute an hour to do so. That is why I am selling the house: to move and to pay off the mortgage and the personal loan I took out to buy a new furnace and remove asbestos. I am willing to sell for 76K.

The debt collection process

When you default on a loan or pay less than your contractual agreement – for instance, you have to pay a set percentage of the amount owing on credit cards or a minimum payment – your account will be passed to the firm’s own internal debt collection people. They will contact you to try to recover what is owed and to check your circumstances.

Most banks and financial organisations prefer – at least initially – to handle debt problems themselves. However, if the situation continues for any length of time or they are unable to come to an agreement with you, or you ignore their letters and/or phone calls, they may pass the debt on to a collection agency or try to recover their money some other way.

Any debt collection agency used by your creditors must work within the same legal restraints as the original financial organisation and cannot, for instance, try to demand money under threat of physical violence.

Often the letter you receive will indicate that you have to pay the full outstanding balance of the debt with a threat that if you do not, further serious action will be taken. Some people get frightened by this but it is essential you respond indicating why you cannot pay the full amount and sending a copy of your budget and repayment proposals.

Provided that you maintain the proposed payments, update the information in your budget when asked by your creditors to do so and provide evidence (like bank statements and payslips) when they are requested, most creditors should be prepared to help. However, if you do not voluntarily make payments to reduce your debts or keep to your repayment arrangement, the original financial organisation or the collection agency may apply to get a County Court Judgment(s) against you. In this case you will usually be sent a claim form. This gives you an opportunity to respond – either by defending the claim if you dispute it (using the form known as an N9B) or by offering to repay the debt by instalments (using the N9A form which has to be completed with the same sort of information that is included in your budget). In most cases, provided you complete this form, your proposals are realistic and you keep up the payments, no further action will be taken.

If you wish you can attend a hearing and explain your circumstances and present your personal budget but this is not normally necessary as long as you have returned the relevant paperwork within the time allowed and your budget is a realistic one. Failure to keep up the payments agreed can lead to further action. If you are employed and fail to make payments to a CCJ, an attachment of earnings order may be made against you. That means the instalments due will be taken directly from your salary by your employer before the balance is passed on to you.

If you are under a judgment(s) from the Court and fail to keep up payments, the creditor also has the right to instruct bailiffs to recover the amount due. This is the likely course of action if you are not working or are self employed and fail to keep up the agreed payments. Bailiffs might also be sent if you fail to reply to any letter from the Court that seeks further clarification of your position

2007-04-28 02:21:29 by Catwoman

I'm thinking of getting a loan but then the question comes up as to whether I want a secured or unsecured loan? WHats the difference and which ine is more advisable to take?

Secured loan is a loan secured against something, eg your house, in case you can't pay it back. Unsecured is better if you can get it.

2007-11-06 04:48:31 by lost_Zimbo

I have been trying to find a good place to get an unsecured loan to help pay off high limit credit cards.

Your credit union is the best place. If you are not yet a member, find one that you meet their eligibility requirements for.

Some credit cards will offer a "consolidation loan" product that is nothing more than a glorified balance transfer at a 16% APR.

If you are in need of paying down debt, you may wish to speak with a credit counselor first. There may be other options and strategies available that would help you avoid taking on debt to pay off debt.

You can find one in your local area. Make sure they have a satisfactory rating with the Better Business Bureau.

2006-10-10 07:34:51 by myproblem

I have an unsecured loan with my work at a low interest rate and we agreed a monthly repayment rate. I wish to pay back more than the monthly rate. Do i have a legal right to do this?
There is no loan agreement. I am hoping to find something in equity providing that natural justice allows additional payments to be made??

Some loans actually have a prepayment penalty. Your loan agreement should spell out any terms related to extra payments. If you can make larger payments until the loan is paid off, you could always renegotiate the term with you employer.

2006-11-12 16:41:40 by Ebony H