Today’s economy has hit many people hard – to the point that it may be difficult to obtain money required for home maintenance, medical needs, or car repairs. There are countless sources for financial assistance, including alternative lenders, commonly known as “pay-day lenders”. While these entities fill a specific niche, don’t be lured into believing that your poor credit history prevents your doing business with large institutions or community banks.
The Bank On Movement recognizes that people are not defined by their credit score. The movement began in San Francisco and has spread to numerous cities across America. Federal entities including the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Bank (FRB) and community-based organizations like United Way have teamed up to encourage lenders to establish pivotal products and services designed to provide financial services to individuals with credit issues, including accounts closed for abuse. Second chance services include savings accounts, checking products and a variety of loan types with flexible terms. Contact your local bank to learn whether it participates in the Bank On Movement or whether it offers “second chance” products. Also, you can dial 211 to find community-based agencies near you offering guidance and information on many levels, including which banks may be able to help you.
If you cannot find a bank or credit union in your community offering products or services to clients with your circumstances, you may need to consult with an alternative lender. How Payday Loans Help You Get Instant Loans an article which may be of help in determining whether to apply for a loan under alternative contract terms, which can be quite costly. Typically, loans must be repaid monthly with a new loan taken to replace the former one. The Bank On Movement includes analysis of alternative lending business models to determine that individuals may fall into an endless cycle of debt, thus the encouragement of traditional financial institutions to step up and offer second chance products and programs. Whatever your personal circumstances, you have options. Don’t, however, make a move – and don’t sign anything – until you have evaluated all possible options to determine which best meets your needs.