Post by Google Beta UserGreetings,
How are you all?
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?
The financial institution is concerned about your ability to pay back
the money on a monthly
bases based on your work history, to some exent your health, your
chances of
declaring personal bankruptcy or not and in the hopefully unlikley event
of defaulting on the loan, the financial's institution's ability to
have an asset or assets as collatral to protect the loan's default.
Whether you apply to the same insitution or another institution is not
all that
relevant. They are all looking for the same thing. Some financial
institutions
will take greater risks than others. Some financial institutions will
charge
higher interest rates than others.
It may be of assistance to talk to the financial institution about the
reasons they turned you down
and at the same time ask them what you should do or could have done to
put yourself in a better
position financially so you would have been successful in obtaining the
loan the first time or
should you apply again to this institution or as you said you may wish
to do to a new financial
institution.
The problem with giving people money who already owe money is that if a
person can't pay the money
they already owe from their income and the person lives on the balance
each month after they have
made their monthly payments, it is unlikely they will be able to do it
by giving them more money.
You may wish to look at your personal situation and determine if it is
appropriate to make some
changes such as getting all your current creditors to agree to smaller
payments each month on all
your debts, moving in with a family member or friend and paying the very
minimum amount of money
for your keep until you get out of your financial difficulties.
Post by Google Beta UserWill a good friend co-signing help?
The operative word is good friend. Nothing is crueler or worst than
having a friend, parent or
relative co-sign on a loan. If you have an accident, get sick, or have
any problem not being
able to make a payment, the financial institution simply ignores you and
rubs their hands, gets
excited and quickly looks to your co-signer to pay back your entire
loan. Life couldn't be better
for the financial institution. Does your co-signer know the extreme
risk she is taking, perhaps being pressured into because she loves you
so much and wants to help you in any way she can not realizing how
seriously she is risking everything she has, everything she has worked
for, and all future plans destroyed
while she pays off your financial obligation and all her financial
obligations at the same time. Most
people don't understand the real risk of co-sigining for a loan. At the
very least, they are severly
blinded by their love of the person they early want to help.
Post by Google Beta UserShe'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?).
The financial institution will look at her financial picture in the same
way the looked at your and
make a judgment call accordingly.
Post by Google Beta UserWhat sorts of places are lenient with credit loans?
Well, in polite language, the greater the risk of lending a person money
the higher the rate of interest
charged from the financial institution that says yes. The higher the
rate of interest charged means the financial instituion must work harder
at collecting the monthly payments because of the risk - because in the
end, just to remind you, everybody wants the money they lent you back no
matter who they are. The extreme case, of course, are underworld people
who take extreme actions to get loans paid.
Post by Google Beta UserI'm just not in a good situation at all.
Often state and provincial governments have office that can offer good
practice advise for people
with financial problems.
You have posted about your need to get more money. But even before that
step people must make a list of
the money they owe and to whom the owe the money.
The bills and expenses that have to be paid each month.
The bills that are not being paid each month or should be and
have fallen behind.
List in or any incomes.
List he cost of living expense, food, clothing, shelter, medications,
tranportation.
List absolutely everything you spend money on.
Modest living is cooking all meals, bicycling or using public
transportation and staying
with family or friends for shelter. Eating rice, fresh vegetables and
modest amounts of
meat/fowl/fish can cost very little money a day.
Remember most everyone has financial difficulties in their lifetime.
You are not alone.
It is importnt to get proper sleep and eat well and get some exercise
like walking so you
don't get sick. Then you will have the strength to deal with all your
problems with physical,
emotional and psychological strength. Gook luck.