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Getting a 20000 short term loan nowadays is easier and more convenient especially when you apply online. You can simply fill out a 5-minute loan application, wait for verification, and once approved, you can have your money delivered straight to your bank account. However, there are still necessary documents that you need to submit to increase your chance of getting approved, such as:
Proof Of Income
Proof Of Residency And/Or Citizenship
Proof Of Identification
Proof That You’re Receiving Benefits, Pension, Etc. (For Unemployed)
These are just some of the basic prerequisites that most lenders will require you to submit. On top of this, you also need to meet their criteria, such as:
Age is a crucial factor when applying for a loan as this determines your maturity in handling your debts and finances. Normally, they will require you to be between 21 years old up to 60 years of age.
Your capability to settle the loan is very important, therefore, most lenders will require to be a regular employee, working on the same company for at least 6 months. However, if you’re after a bigger amount, like 20000, you should be employed for 2 years or more.
Having a good credit increases your chance to acquire the loan and not only that, you may be offered with a bigger loan amount, smaller interest rate, and a more flexible repayment term. Meanwhile, if you have a bad credit rating, your chance of getting a loan, especially 20000, is very slim, and in case you’re approved, the interest rate charged to your debt is more expensive.
Lenders will not only rely on your current documents; rather, they will also check your past financial statements. This will help them decide whether they should grant you a loan or not. Like having a good credit score, if you have good financial records, your chance of getting a loan is higher.
Tips for Reducing a Short Term Loan Repayment
If you have multiple debts, getting out of it can be very challenging and it may seem like the only way to get rid of it is to wish for a miracle to happen. But no matter how many loans you have, there are a number of ways that will help you reduce your loan repayments.
Below are some tips on how you can decrease your debts and although some may not work according to your situation, one or more of these techniques can still be useful:
Negotiate With Your Lender
As soon as you know that you will have difficulty repaying your credit card, personal loan, or car loan on time, talk to your lender. It might be a daunting task but it’s worth trying to talk to your lender and ask if they can reduce the interest or at least, give you more time to repay the loan. Whatever the decision is, make sure to have a new agreement in writing before repaying the debt.
Consolidate Your Debts
When you have multiple debts, you’re not only dealing with various interest rates but also, a number of lenders, and that’s where a loan consolidation program comes in handy. Find a loan that will allow you to combine various debts into a single account and make sure that the interest it carries is lower than your current debts. This will allow you to repay your loans, reduce your interest, and deal with a single lender from now on.
Opt For A Credit Counseling
This program will not only help you understand debts further but also, it will let you have access to lower monthly repayments. However, be sure to choose a reputable counselor credit program that can help you reduce your loan payments easily without risking your credit score.
Should anything else fail or when you think your debt is just too much to handle, you can consider filing for bankruptcy. This might affect your credit rating negatively and will stay on your record for years but it might help you save your finances.
Paying Off a Short Term Loan with a Credit Card
Paying off a loan using a credit card is possible; however, you must do the math first before actually using it to settle the advance to know whether you’re saving money. Otherwise, you might only be creating another form of debt.
Credit cards have been used a long time ago for purchasing groceries, paying for tuition fees, shopping online, even unlocking closed doors. This can also help you build a credit history in case you don’t have one but the questions are, can you pay off a loan with a credit card? And even if it does, should you use it to settle the debt?
How Credit Card Works
Probably, you know that you just need to swipe the credit card to a payment terminal or enter the credit card details when paying online; however, you may not realize that you are creating an actual debt every time you use it.
When you use your credit card to purchase, to pay, or to get a “cash advance”, your card balance increases. And, as it increases, it earns interest until it’s fully settled. While you can spend up to your credit limit, you also have the option to repay your balances so your available credit increases.
While using your credit card is considered as a debt, it’s very different from a loan. For one, it has a 30-day grace period. This means that your account will only acquire an interest if you fail to settle it in one month. Therefore, if you settle the bill on or before the grace period ends, you are getting an interest-free loan. On top of this, you are increasing your credit rating.
Another good news with having a credit card is that it can be used to settle loans, at least in some instances. Some credit card issuers may allow you to pay it directly via your online account or, you can request for a credit card convenience cheque. But then again, you have to know if you’re actually saving money or creating a new form of debt.
When you settle a loan, you might be charged with a balance transfer fee. In addition, some credit cards charge more expensive interest rates compared to personal loans, thus be sure to do the math first before paying the loan with a credit card.