Re-Applying for a loan after rejection ? with problem Low Interest Payday Loans
Re-Applying for a loan after rejection ? with problem Low Interest Payday Loans
Some brief background info: I already did not have a good credit
history, but on top of that I have been a victim of identity
theft/fraud over the past 2 months. I rent a place. Income is $21K
gross. I applied for a Line of Credit with a regional bank Maryland
Bank and it was rejected. Now I am looking for a loan of $2,000. The
reason I need a loan is to help me get back on track with my living
situation. I'm in this problem because of theft (some of it cash)
which caused all sorts of chain reactions. Also my roommate, whose
'friend''s names was on some of the checks is refusing to pay her
half of the bills.
Now my question is, what is the best strategy to reapply right away?
Does it matter whether I apply at the same bank or a different one?
Will a good friend co-signing help? She's my age and our combined
income would be 35K + net or about 50 K gross (do you use net or gross
income when applying for a loan?). What sorts of places are lenient
with credit loans?
I thought loan sharks were illegal. That is a HUGE amount of money
($100) to pay for a two-week extension.
Now that I know you already have a loan (on really bad terms), my
advice is different: if you can't find a source of cash (selling
something valuable like a big screen TV or something) to pay it
off, then you need to get yourself a loan with better terms and
lower rates as soon as possible.
One idea is to get a credit card. Lots of them will let you do a
balance transfer with low interest rates on the transferred balance.
You don't really want credit card debt, but it's way preferable to
pay 20% per year on some credit card than 16.67% every two weeks
with this quikpayday thing.
From there, once you are in less of a crisis situation, you can
work on "refinancing" again. Maybe you can get a debt consolidation
loan to pay off the credit card and reduce the rates even further.
Or sometimes, if you keep getting offers for balance transfers with
good rates, it might be preferable to just transfer the debt from
one credit card to another while you are paying it off.
By the way, if you do use a credit card, I recommend that you get a
separate card just for this debt and don't use it for much of anything
else (maybe charge $10 every six months just to keep it active in
their computers). The reason is, some credit cards charge you no
interest on purchases for the grace period (30 days or whatever) if
you don't carry a balance, but if you do have a balance, then you get
charged interest on everything immediately, even brand new charges.
So, if I understand the rules correctly, it's better to make new
charges only on cards that don't have an outstanding balance. Or,
of course, if you aren't good with credit cards, don't make any charges
and just use it as a way of getting away from these quickpayday loan
sharks.
Also, have you tried printing out the terms of the loan from quikpayday
and showing these to your roommate? Does your roommate know that
their unwillingness/inability to pay you on time is going to force
you to pay $100 in a few weeks? My guess is your roommate has financial
issues as well to deal with, but sometimes having a deadline that can
be backed up by stuff in black and white can motivate people. At least
they know that whether they pay you what they owe you by the 26th can
make the difference on whether you're forced to flush $100 down the
toilet. If they have some sense of decency and any way to do something
about it, perhaps that will motivate them some.
Speaking of which, does the roommate have anyone (friends or family)
that can help them pay you? If they're relatively young (like college
age), perhaps they have parents who would be willing to pay on their
child's behalf the money their child owes you. In some cases they
might do that to cover for their child and in others just to avoid
tarnishing the family's image. It's sad to have to think in terms
of forcing your problem to become theirs, but the real fact of the
matter is that when your roommate owes you money, it should be your
*roommate's* problem and not yours.
Finally, another thing to check into: perhaps this payday loan you
got from quikpayday actually *IS* illegal! Some quick googling for
"payday loan illegal" and similar things seems to indicate it is
illegal in some states. For example, supposedly in Georgia, it's
illegal, but rarely enforced, but part of the law is that it's not
legal for the lender to try to collect on the loan!
One of other posts mentions you applied for a loan from Maryland
Bank, so if it's safe to assume you live in Maryland, then you
should probably check out this site:
http://www.mdconsumers.org/II_CURRENT/current_projects_index.htm
Under the "Payday Loans" section, it says this:
Maryland Consumers has been working to keep payday lending
illegal in Maryland. . . During the 2001 legislative session
Maryland Consumers worked with other non-profit groups and
government agencies to thwart an industry attempt to legalize
payday lending in Maryland.
You might try calling or e-mailing them with the contact info they
have on their contact page. Even if they can't help you with the
payday loan issue (maybe quikpayday does things on terms that are
actually legal even if shady), perhaps they can give you some good
advice or help you in other areas somehow.