3 Loan Myths That Need To Be Debunked This YearFast Action Finance
Thinking of getting yourself a loan? On your search on the internet and through books to learn about how the loan system works, you might have heard about many facts and many different types of loans. While most of them should be hardcore facts adding to your knowledge, some myths and lies might slip in through the entries of people who have been mistaken about those points themselves. We definitely want you to have complete but accurate knowledge on things and we want to take things slow for you.
In this article we are going to debunk three of the biggest loan myths we have heard over the past year for you to realise what is the truth behind them. Learning more about credits and car loans and educating yourself against these myths is important because going with the flow with these inaccurate points can land you up in a loss rather than a profit. Here are the three biggest loan myths that we are going to debunk:
Single loans are only allowed at a time
Many lenders, in fact almost all lenders allow you to take up more than a single loan during a single paying period. If you think one loan is not enough and you could do with a second one, then go ahead and apply for the second one because the myth that you should only have one loan in your hands for a single paying period is not true at all. If you are confident that you can pay back the whole sum for your multiple loans in the same paying period then no one is going to stop you from doing this. But you have to usually ensure that you show that you are capable of this feat.
Lenders use their position to check and make sure your credit scores are good before they go on to approving and agreeing to your multiple loan plan within the same paying period. But not all lenders do this anyway, some lenders do not mind about your financial history and would trust you at your current state, so do not be hesitant to try this if you are really in need of more than a single loan.
But bear in mind that taking up more than one loan for yourself within a single paying period is something that should involve you being responsible and careful. Take note of your repayment dates because with multiple loans, if you miss your payment date, then your credit scores can be shaken and affected pretty badly compared to just being on a single loan.
Just ensure that when you are keen in the idea of taking up more than one loan, make sure you do your own research about things first. Learn about how to handle this situation and also learn about the additional complications that might arise, like the one we mentioned above. Do not read into the stories whipped up by other people who could possibly have been irresponsible to land themselves in a bad spot. The only way you can protect yourself against any possible mishap is to be well aware and well informed about all the factors around this situation and making sure that you do not let yourself become a victim of any of it.
Your chances of getting a loan is lower after bankruptcy
If you have already gone bankrupt once before, it might give you a worse credit score than someone who has not faced it, but it definitely does not stop you from taking up more and new loans. In fact taking up a loan after your bankruptcy can even help you boost back up your credit score. For example, taking up a car loan is a good way to bring back up your credit score to build your reputation in the market back again. You can also build up your reputation back again by making sure you make your payments in a timely fashion when you take up your next loan.
You can’t get a car title loan if you have bad credit ratings
Having a good credit score helps you land yourself with a good car title loan in Brampton, but having a bad credit score or having no credit at all, definitely would not stop you from getting a car title loan. You might be having some problems getting loans from a traditional institution like a bank, car dealers or places like credit unions. But you can always consider other places which are more specialised in their source of help as lenders where they welcome people with bad credit scores to go through them.
Traditional loans would require more eligibility criteria for you to get a loan settled for yourself. This would include evidences to show that you are able to purchase insurances and you are able to pay off the repayments due to a constant source of income. Having a bad credit score would just mean that you would not be able to meet such specific requirements, but as mentioned before, you can deal with it by going to specialized lenders.