To say that we are teetering on the edge of an economic relapse is a bit of an understatement given the current global financial and political climate. It is a scary time to be living in right now, to say the least, and a lot of us have started to look at our own finances and get nervous.
During the covid 19 pandemic, I had to deplete a lot of my savings. I have hardly any left over now, given that I was laid off in early 2023 and was living off of that and unemployment for a long time. It has been a real strain on both my family and I, even now.
If disaster strikes, I am not sure what we will do. This is a situation that a lot of us are in right now, unfortunately. For those of you out there who feeling this way, hopefully this article can help you out to some extent at least. I will be covering some of the ways that we can handle emergencies, especially in the wake of all of the turmoil that we have all experienced in the past few years.
Having little to no credit history or poor credit is daunting, but it does not mean that we are entirely out of options or places to turn. There are ways for us to build our lives back up. Today, I will go over some of those as well, so be sure to stay tuned!
Why Credit Matters
To get a head start on this, you could check out this article beforehand. I found it quite helpful as a way to breach the subject without feeling overwhelmed. Admittedly, a lot of the blogs written by financial experts get quite confusing in regard to the terminology and jargon, without offering much in the way of useful information.
The first thing that you should know about a credit score is that they are going to be looked at a lot throughout your lifetime. Almost every big purchase will be dependent on your score being accepted. This is something known as “creditworthiness.” Essentially, that is how trustworthy you are in terms of paying back money that you borrow.
What all might it play a role into? I will not be covering every possibility, so just know that this list may not be entirely comprehensive. With that in mind, let us proceed.
Perhaps the most obvious example that most of us think of are credit cards, like the one pictured above. Unfortunately, they are a bit oxymoronic in nature. Let me explain.
To get a credit card, you have to have a qualifying score. However, without one, it is difficult to actually build said score up further. Do you see how it is a catch twenty-two? Thankfully, there are some that are designed specifically to help folks build up their credit, so that could certainly be something to investigate.
What else, then? As I mentioned previously, trying to buy a house or a vehicle with little to no history on your report can be a serious uphill battle. Without building trust that you will pay your bills on time, many lenders simply will not consider you. It can be highly frustrating. It is even worse if your score is “poor” – you will simply get denied or told to get a cosigner.
Even landlords and insurance providers sometimes look into our history, which can be detrimental to our rates and how much rent we will have to pay. In general, trying to improve our scores is a trying and painful task, but it does tend to be worth it in the end.
What do Loans Have to do with this?
Now that I have covered all of that, you may be wondering what on earth loans have to do with this topic, anyway. When it comes to a smålån på dagen uten sikkerhet, the answer may not be immediately apparent. SMS, or text message loans, are not entirely in the cultural mainstream right now, nor are they often regarded as a common solution to financial crises.
Despite this, though, they do deserve to have a light shone upon them. Let us start a bit more generally, though. It may seem strange to talk about borrowing more money as a way to improve our credit or our finances in general. Surely, going into more debt is not the best way to do it, right?
You see, a lot of it comes down to that whole concept of paying bills on time to prove that we are trustworthy borrowers. Certain types of loans can be utilized for this purpose, and while our scores might take an initial dip, as we make our repayments on time it will gradually start to improve instead! If you are curious about them, you could always talk to your current financial provider.
What about text message loans, then? What do they bring to the table, and what even are they? Well, they are a way that some lenders allow applicants to borrow money from them over text messaging on a phone instead of the traditional methods. For my introverts out there, I am sure you are quite pleased at the notion.
I know that I definitely was, when I first heard of them. Dodging some of the awkward small talk and face to face interactions is hardly something that I would complain about. Even phone calls can be a real pain, and I always feel so self-conscious about every little thing – even breathing into the microphone!
Having this as an option to go with instead is quite convenient, at the least. We do not even have to go into the bank at all to fill out paperwork. Instead, you will get sent a pin to help your provider confirm both your identity and some of your personal information like date of birth, phone number, and more.
Notice that I have not mentioned credit scores or checks, yet? That is because a lot of these do not require those. Sounds like a dream, right? There are a few catches here, and I think it would be unfair to cover this without discussing them at least briefly.
The first big downside to them is that they tend to come with very high interest rates. That means that even if you borrow a small principal amount such as one hundred dollars, it could quickly grow into owing a lot more than that. In addition to that, the overall time period of them is usually quite short, meaning there is a quick turnaround.
So, if you do not anticipate being able to pay the money back quickly, they may not be the best option. That being said, if you are trying to get some cash fast, that can work in your favor. It will be up to your discretion, of course.
So – are they Worth it?
Depending on your own financial situation and how you want to handle it, there is not exactly a definitive answer that I can offer to this question. As I discussed above, there are some drawbacks to borrowing this way. You will need to decide if those outweigh the positives or vice versa.
I will leave you with the advice that most experts also offer: just be cautious about the money that you are borrowing and spending. Creating a monthly budget can never hurt, especially when we are trying to balance all of the bills and repayments that we have to make. If you are already in a tough spot and do not think that you can take on another financial burden, then you probably should not. So long as you are careful, though, and have a plan, you should be okay!
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Article by Born Realist