Why Choose Emergency Loans in Adverse Financial Situations?

At times, much to your surprise, you may find yourself financially entrapped in the middle of the month, before you could receive your next paycheck.

In such a financially threatening condition, the immediate assistance that you could think of would be a loan from a reliable loan company or family and friends.

But, if all your backup ideas fail and resources, it would be more than appropriate to turn to an online loan lender for help.

There is nothing to panic about when getting a loan. People do experience such unexpected situations of desperate financial need at least once in their lifetime and everyone can try to get hold of emergency loans in the market.

When you’re in need of emergency loans to cover up your emergency expenses it’s important to understand that lenders can be of great help. They involve quick process during preliminary approval stages and chances of your loan application getting rejected are relatively low. Choosing a short-term loan product for emergency needs is one of the best ways to get out of financial emergency.

The main fact that you could always keep in mind is that these emergency loans were designed for people that have a steady job and generate monthly income to meet their emergency financial needs.

They are meant to be repaid in small cycles or possibly with your next paycheque. The worldwide accepted truth is that not all people from different classes are self-secure to meet sudden sky-rocketed monthly expenses. The best option for them is to apply for emergency loans that have less processing and approval time.

Emergency car title loans offer cash as at when you need it, which will assist you to tackle the situation without any worries or delay.

With the amount received you can fix your washing machine or car, pay your medical bills or whatever the emergency need maybe. After applying for the loan, you could receive the funds on within 24 hrs.

The main benefit of getting emergency loans is the hassle-free process that is involved in getting them. Another major point to note is that it does not matter if you ever had a bad credit record history because these loans are 100% credit check free. Emergency loans are meant for emergencies and you won’t even have to tell the lender the reason you’re borrowing the fund.

Furthermore, the amounts provided in the loan market start from $100 and could go up to $5000, with repayment cycles varying between 1-6 months, making this the best way to meet an immediate need.

To qualify for the loan, you would need to have a working bank account and be a resident of the United States of America.

The other important requirements are; you should be in a monthly paying regular job and you must be at least 18 years of age. But, the only disadvantage here is that most of the online lenders do not approve a loan for people who don’t have a job.

Credit Card Processing: The Working Mechanism Behind the Whole Process

Having the intimate knowledge about the inner-workings of the bankcard system is not mandatory but then there’s no harm in knowing it. Understanding how things actually work is a good approach, as fees are incurred at times at one or the other stage. The main components in the whole process involve:

1. Key players
2. Credit card authorization
3. Credit card clearing and settlement

Credit card processing services are so quick and timely that within few seconds, transaction details are transferred from the terminal to a processor. Later, this information is passed through the card network to the issuing bank. Once all this happens, the issuing back sends an authorization back to the processor via the network.

In the whole system, obtaining an authorization for a transaction remains the first step. Before the sales are deposited in the bank account of the business, it is necessary that the authorizations are settled. Settlement and authorization are the two major processes of transaction. If ever this happens a failure be it complete or partial, it leads to sales not deposited or increased costs.

The Key Players

Key players involved in authorization and settlement include:

1. Customer
2. Service Provider
3. Acquiring Bank
4. Issuing Bank
5. Card Associations (Visa and MasterCard)

Let’s discuss every player one by one.

1. Cardholder: This term refers to the one who gets a credit or debit card from an issuing bank. The card is then presented to the merchants as payment for the services or products.

2. Service Provider: Service provider is the business that is engaged in the sale of services or products. It can also be said that it is a business that allows accepting credit as well debit cards.

3. Bank of the service provider: It is often referred as an acquiring bank. This is because it creates and maintains accounts and enables businesses to accept credit and debit cards. Moreover, these banks provide software and tools to accept promotional materials, cards and other important elements needed in card acceptance to the merchants.

4. Issuing Bank: An issuing bank provides credit cards to the customers. It is important to know that this bank is a member of the card associations. These banks pay the banks for the sales or purchases made by their cardholders. Repaying the issuing bank as per the norms of card agreement is the responsibility of the cardholder.

5. Card Associations: As MasterCard and Visa are not banks, they serve as a guardian and clearing house for their card brand. In addition, they monitor the community of ISOs, MSPs and financial institutions that work jointly to support credit card processing and electronic payments.

This was all about the important parameters of credit card processing. To keep transparency in the credit card processing mechanism, keeping these important points in mind is quite helpful.

Understanding the Importance of CIBIL Rating & Ways to Improve It

A credit rating is nothing but a number, which is computed by an approved credit rating agency. These days the masses are more conscious than that in the past. It is because of this risen awareness that jargon like credit rating and CIBIL score are heard often across almost every tier of the society. The rating or the number actually provides a hint of an individual’s credit worthiness. This score proves to be a crucial tool for conventional lending agencies while processing or approving a loan application of an individual. Before borrowing the money, creditors need to have an indication of the probability of default of every loan seeker who approaches them, for obvious reasons.

There is still a way of explaining the importance of credit score. Flatly, it tells a lender or credit institutions like banks, how likely is it that a borrower will repay a loan based on the individual’s

  • Pattern of credit usage in the past and
  • Loan repayment history

It is possible for every individual to check his or her own credit history. In order to check the history, one should obtain a copy of one’s credit report. In India, one can avail this from any of the three rating agencies, namely CIBIL, Experian or Equifax. The records include every loan or credit account that one has along with detailed information of the concerned individual’s entire payment history. Thus, the credit score is calculated based on a person’s financial track record as noted in the individual’s credit report.

Thankfully, it is possible to improve one’s CIBIL score. However, one should remember that there is no quick-fix procedure to achieve this overnight. It takes some time for the process to take effect. But, it is possible to improve one’s score significantly within a short time frame and to achieve it one has to adhere to a set of rules. As such, it is an excellent habit to check one’s credit scores at regular intervals so that one remains updated about one’s financial health in a periodic manner.

As the first step towards improving one’s CIBIL rating, one should keep the credit card balance as low as possible. A higher credit limit allows an individual more flexibility in making payments and also helps in keeping the balances low. Setting up payment reminders proves helpful in avoiding missing payment deadlines. Credit score drops because of missing payment deadlines. In this age of digital technology, it is pretty easy to ensure the monthly balance paid automatically through electronic transaction directly from one’s bank account. Moreover, one can have the bank shoot timely reminders through SMS or emails as well. If one spends over 30% of one’s credit card limit on monthly basis across all existing cards, it negatively affects the individual’s credit rating. So, ask for higher credit limit and maintain or cut down the monthly expenditure below 30% of the credit limit. This is an effective means to improve one’s credit score. In fact, improving one’s credit score is not impossible, provided one sticks to the right strategies with dedication and involvement.