Akron OH
Fair To Bad Credit Loans

Signature Loan in Akron OH

Eddie has been using payday loan services for the past several months and he just realized how expensive these kinds of loans really are.

He had fallen into a cycle where he would pay his latest loan off when he received his pay check and then five or six days before he was due to be paid, he would have to take out another loan.

They would even cash his check for him after charging a fee. It seemed that no matter what he was doing he would be paying fees for something.

He was barely staying ahead of all of the loan charges.

He would like to borrow a small loan of $1500 and repay the loan over the next 12 months.

Even at a relatively high interest rate, it still would be less than what he was paying for the other loans once you accounted for fees and interest charges.

Instead of paying his entire check to the loan vender, he would just pay a little bit less than $70 for his monthly loan payment. He would have money left for rent, food, utilities etc.

Although this loan is not a large loan, Eddie feels that it would help him break the cycle of taking a new loan every two weeks and paying enormous loan fees.

A $1500 loan with an five-year term and 8.19% interest rate for Eddie would cost him the following per month:

• Loan Amount (principal) = $1500
• Interest Rate = 8.19%
• Term Length = 1 year
• Monthly Payment = $130.61
• Total Paid Back = $1567.37
• Total Interest = $67.37

Eddie actually did not even have a bank account which was another reason that he fell into the payday loan trap.

He would cash his paycheck at one of their offices and pay a fee which was actually more than the fee he would have paid to keep a bank account open.

Once he opens a bank account, he can have his pay check automatically deposited and the loan payments also withdrawn automatically provided there are sufficient funds in the account.

Eddie's credit score was in the dumps. By having a bank account and paying his monthly loan payments on a regular basis he will begin to establish a credit rating.

Once he has a descent credit rating, loan applications can be processed and approved with more competitive interest rates as well.

Almost all financial transactions are completed electronically these days.

If you do not have a bank account, consumers cannot really participate easily in this financial economy.

Once he opened his bank account and had his paycheck deposited to the account he was able to apply for this small loan and was approved.

He paid off the current loan he had and also began making payments on the new loan at a much lower interest rate.

Eddie is well on the way to improving his credit score, although it will take a year or two of perfect financial management before he can really consider larger loans at lower interest rates.