Sandra in Allentown PA submitted a pre-app for a fast loan so she could pay her cell phone bill, landline bill, utility bills, and her two credit cards.
She said she wanted $10000 to zero everything with her creditors and she wanted an interest rate of 7% – even though her credit score was close to 600.
Yeah. This is just a little too common.
On our sister sites (FUSA, CLF, TYPO) We get requests every day from people who have bad credit and want a quick loan to pay off some nagging bills but their credit score is a real bottom feeder.
We get emails and applications from thousands of people a month who have rock-bottom-bad-credit and feel they have no where to turn. Usually they’re desperate and they’re practically begging for a loan.
They assume that if they get approved they’ll be able to clean up their debt and have a fresh new start. Little do they know the quick cabbage isn’t going to solve their problems.
Because their spending habits are deeply engrained and they’re not prepared to make painful changes.
We urge them to take a serious look at their spending and their earning power. Then we urge them to create a realistic budget they can obey.
Do you know what 99% of them say? (I won’t wait for you to guess)
“I’m not interested – just give me the loan application.”
These folks are in a R.U.S.H!
They want to be approved in seconds and have the money deposited in their account within minutes.
It’s frustrating to watch month after month, and sometimes I curse them for not listening to common sense.
But I still have empathy for them (and always will) because I was once in their crappy shoes doing the same crappy things.
I was as dumb a sack of cheap hammers.
I made all the same dumb mistakes and at the time I wouldn’t listen to anyone. Why would I listen to anyone when I already knew it all – I mean really…….Come ON man!.
But we’ll get back to my mistakes another time.
Let’s move on with Sandra’s urgent request and how she was convinced a cheap 10 grand would help solve all her problems.
Sandra’s List of Creditors
The Rent-A-Center bill was for some rent-to-own furniture she wanted to pay off as well. A great idea – why not clear up everything at once and get the lower interest rate she was hoping for.
Problem: it’s all pie in the sky with her 600 credit score.
Her interest rate on a personal loan would range between 23% and 32% – so no win there. All she’s doing then is transferring her debt from 4 creditors to one creditor.
And for some people that works. They would rather deal with one lender and one payment schedule.
But for Sandra that wasn’t an option. She went loan shopping for a low interest deal with the banks and credit unions in Allentown.
She tried Wells Fargo, Santander, PNC, and BB&T.
Not a chance.
Then she tried the credit unions – Peoples First, Allentown, First Commonwealth, Gold, and Sacro FCU.
No way baby.
And the worst part is some of these lenders did hard pulls on her credit score which hurt her rating even further. Not to mention how her reputation with local financial institutions was affected.
So then what?
Well then she went home and started searching online. She went Googling, Binging, and Yahooing!
Wow…..she was hopeful for the first time and she could taste the sweet taste of victory.
Stop right here……you know what? This story is starting to sound familiar.
We’re done here.