Emergency car loans for single mothers
Loans for single mothers are a convenient option for women whose situation is not easy, due to the fact that they have to work and take care of their children without the help of someone else. They are loans commonly used to pay contingencies, emergencies, repairs or monthly expenses such as rent, telephone, electricity, etc. Also consider that single mothers must deal with expenses related to their children in terms of education, health, food, clothing and footwear. Hence, these loans become an important support to get ahead.
This type of loan is aimed at single mothers, housewives and heads of families, who do not have a credit history . Or even be too short for banks to offer you larger or lower interest rate loans. In the same sense, many single mothers do not have endorsements and guarantees, so these loans do not request these requirements.
Although some of these loans for single mothers can be paid in up to 30 days, the ideal is to choose shorter payment dates, between 7 and 15 days to avoid paying high interest.
The main requirements that companies could ask you to obtain this type of credit are:
- Be of age
- Own bank account to receive the loan
- Valid official identification
In Moneyman, for the amount received of $ 1,500 pesos, María would have to pay in 15 days , in a single exhibition, $ 1,808 pesos , that is, they would charge $ 308 pesos of interest (Calculation made with fictitious data in the Moneyman simulator).
If she chose Kueski, for the amount received of $ 1,500 pesos, María would have to pay in 15 days , in a single exhibition, $ 1,811 pesos , that is, they would charge her $ 311 pesos of interest (Calculation made with fictitious data in Kueski's simulator).
Now let's consider Alejandra's case, who requires $ 2,500 pesos to buy a new microwave . To which you could consider the following options:
In Moneyman, for the granted amount of $ 2,500 pesos, Alejandra would have to return $ 3,527 pesos in a single payment after 30 days. What it means to pay $ 1,027 extra pesos for having disposed of the money (Calculation made with fictitious data in the Moneyman simulator)
In Economic Support, for the amount granted of $ 2,500 pesos, Alejandra would have to return $ 3,537 pesos within a period of 3 months. Which means paying $ 1,037 extra pesos for having disposed of the money (Calculation made with fictitious data in the Economic Support simulator).
Note: Although in Apoyo Economico the term to pay is much longer, it is important to note that Apoyo Economico, unlike the other companies mentioned, does not make loans online, only at a branch.
It is the type of credit that is granted with very few requirements, without endorsements or guarantees and that can be obtained in two or three days, or even in minutes. It is a credit used by single mothers who have no way of proving income and who cannot get loans through payroll.
These credits are often used to cover contingencies, emergencies or to complete monthly expenses. That is why the micro-credits must be returned in less than 30 days.
One of the advantages of becoming a frequent client of companies that offer immediate loans is that later you can access larger loans and longer term. Examples of entities that give immediate credits are Moneyman and Kueski.
t is very similar to immediate credit, the difference is that this credit gives you longer terms to pay, regularly from 3 months onwards.
Although there are simple credits that will not ask for guarantees or guarantees, it is also true that it is very possible that the credit bureau will review you, ask you to verify your income or to carry out an investigation before granting you the loan.
If you have a stable income of at least $ 5,000 pesos a month, you could choose to get a credit card, which would allow you to organize your expenses throughout the month and not have to resort to immediate credits. With a credit card, you can cover unplanned expenses and have a longer window of time to pay off your debt without having to pay interest.
Most banks offer a basic card with a credit line of around $ 11,000 pesos, as well as cards that do not charge an annuity, which would be a good option for single mothers. Example of a bank offering zero annuity card is HSBC.
The federal government offers a program in which single, divorced, widowed or separated mothers are supported with a monthly amount of $ 3,000 pesos while they carry out their higher technical or undergraduate studies. This scholarship is awarded for a period of 36 months (three years) considering the completion of studies. For more information visit the Conacyt page .
Financial support requests the following requirements: Verify minimum family income of $ 2,000 pesos, valid official identification and proof of address. Economic support is found in the main cities of the center and south of the country. They do not make loans online.
Compartamos Banco has a product in which a loan of up to $ 70,000 pesos is delivered to a group made up of at least 10 women who have their own businesses. It is processed with a voting credential and proof of address.
You may have seen ads like this. If you need cash quickly, and have had trouble getting a loan from a traditional financial institution like a bank, you may think that the answer is to take a car title loan. The Federal Trade Commission (FTC), the national consumer protection agency, advises you to step on the brakes and consider other options. With a car title loan, you put your vehicle at risk: you may lose one of your most valuable possessions and your means of transportation.
A car title loan - also known as a pink-slip loan, or pledge or title pawn - is a low-amount, short-term, high-rate loan that uses the lien-free title of your vehicle as collateral. It is a very expensive form of credit. Some lenders offer car title loans if you have equity in the vehicle, even if you don't have a lien-free title. Typically, these loans are for a 15- or 30-day term and carry a triple-digit APR - a much higher interest rate than most other forms of credit. Car title loans are typically for an amount that ranges from 25 to 50 percent of the value of the car. The average amount of these loans is between $ 100 and $ 5,500. But some lenders can extend loans of $ 10,000 or more.
Lenders that give credit on the title of ownership of a car operate in customer service stores and on the Internet. Whether you apply for the loan in person or online, you will be asked to complete a loan application. Consumers who wish to apply for the loan on the internet will be given a list of the locations of the businesses that offer loans on car titles near their homes. To complete the transaction, you will need to present your car, lien-free title, personal photo identification, and proof of insurance. Many lenders also require the delivery of a duplicate set of car keys.
When you apply for a car title loan it is important that you:
Review the terms of the loan. Lenders who give credit on a car title must give you the terms of the loan in writing before you sign the loan agreement. Under the federally applicable Truth in Loan Operations Act, car title loans are treated the same as other types of credit: lenders must report the cost of the loan. Specifically, lenders must tell you the finance charge (expressed in a dollar amount) and the annual percentage rate or APR (the cost of credit on an annual basis). The annual percentage rate or APR is based on several factors, including the amount you borrow, the interest rate and costs of credit that apply, and the length of your loan.
Beware of those "extras" that can increase the cost of the loan. In addition to the costs of the loan, you may have to pay for additional items such as a car salvage service plan. The cost of the plan can be based on the value of the loan. If you are required to purchase additional items, their value will be part of the finance charge / APR, which will further increase your credit costs. Plus, the extras themselves can be expensive - and can add significant amounts to your loan.
Once the loan is approved, you receive the money and the lender receives the title to your car. You won't be able to get your car title back until you finish paying off the loan.
On average, lenders typically apply 25 percent per month to finance the loan. This means an annual percentage rate of at least 300 percent. And depending on the additional charges that the lender may demand, the rate could be even higher. For example, if you borrow for $ 500 over a 30-day term, on average you may have to pay $ 125 plus $ 500 of the original loan amount - $ 625 plus additional fees - within 30 days of receiving the loan.
Generally, you have three payment options: in person, through an online system, or through an automatic refund system.
If you opt for an automatic repayment plan, you must authorize the lender to debit your regular payments directly from your bank account or debit card on the due date of each payment. Lenders cannot make recurring automatic debits unless you agree in advance for these transfers to be made from your bank account - and they can only do so after providing you with a clear informative statement of the terms of the transaction. The provider must give you a copy of your authorization for recurring automatic debits. Additionally, it is illegal for a company to require credit to be repaid through pre-authorized automatic transfers.
If you are unable to repay the loan within the usual 30-day period, the lender may offer to “convert” the loan to a new one. They say "roll over" in English. The roll over process always adds fees and interest to the amount you originally borrowed. For example, you take out a loan of $ 500 for a period of 30 days. But at the end of the 30 days, you cannot pay the full $ 625 plus other charges. You can only pay $ 125. If you refinance the remaining amount to a new loan, more fees and interest will be added to the amount you already owed. This could result in a dangerous loan cycle and refinancing of the original loan amount. You may end up paying fees in excess of the amount you originally borrowed, and in reality, you may find it impossible to pay your debt in full. If you do not pay what you owe, the lender can foreclose on your vehicle.
If you regain possession of the vehicle, your car is subject to a lien , and you will not only lose your transportation to get to work, school and other places where you need to go, but you will also lose money from the value of your vehicle. For garnishment and other purposes, some providers require the installation of a Global Positioning System (GPS) or start-up interrupt devices.
GPS devices track the location of your vehicle, allowing the provider to quickly access your car.
Starter interrupt devices prevent you from starting your car's engine. Sometimes these devices are used for car repossession. Other times, they are used with a system that reminds you to make your payment. And you get a new code to restart the car's engine.
Laws in some states state that lenders who repossess and sell your car are required to pay you the difference between the sale price and the loan amount. But in other states, lenders can keep the full amount of the sale.
Before deciding to take out a car title loan, consider a few other options:
Take a small loan from a bank. Consider taking out a small loan from your bank, credit union, or small loan company. Some banks may offer short-term loans for lower amounts at competitive rates. There are also some community organizations that may offer loans for small amounts. There is also the possibility of taking a cash advance on a credit card, but it may have a higher interest rate than other sources of funds. Find out the terms before deciding. In fact, what you have to do before signing is to search and compare all the loan offers available.
Find and compare different credit offers. When looking for a car title loan or any other form of credit, you always have to look for the most convenient offer. When looking for loan products, compare the annual percentage rate (APR) and finance charge that includes loan fees and interest and other credit costs. You have to look for the lowest annual percentage rate. Armed Forces personnel have special protections against extremely high fees and charges, and some states and the District of Columbia set rate limits for car title loans and other specific loans. But even with these protections, car title loans can be particularly expensive. especially if you refinance and agree to pay additional fees. You may find other types of credit with lower rates and costs.
If you are falling behind on payments, contact your creditor. If you are considering a car title loan because you are having trouble paying your bills , contact your creditors or your loan servicer as soon as possible and ask for more time. When creditors believe that you are acting in good faith, they may be willing to be a little more flexible. They may offer you an extension to pay your bills, in which case you should find out the amount of charges that will apply to you for that service - a late fee, an additional finance charge, or a higher interest rate.
Find a credit counseling service. If you need help working out a repayment plan with your creditors or developing a budget, contact your local nonprofit credit counseling service . These groups provide credit advice to consumers in all states for free or low cost.
Make a budget. Make a realistic budget, including your monthly and daily expenses, and plan, plan, and plan. Try to avoid unnecessary purchases, everything adds up - even the smallest things you buy every day, like a cup of coffee. At the same time, try to save a little - small deposits also help. With a savings plan - no matter how modest - you can avoid the need to borrow money to deal with an emergency. For example, if you save the fee you would pay for a three-month $ 500 car title loan, you could cushion the blow if you have a money emergency.
Add overdraft protection to your bank account. See if you have - or if your bank can offer you - overdraft protection on your checking account. If you are regularly using most or all of the funds in your account and you make a mistake in recording your transactions, overdraft protection can help prevent future credit problems. But this service can also have fees and limits. Find out the terms and conditions applicable to overdraft protection - how much it costs and what it covers.
Pursuant to federal law and the provisions of a policy issued by the Department of Defense, car title loans - and certain types of financing - offered to members of the Armed Forces and their dependent family members must include certain special protections. For example, as of October 1, 2007, the annual percentage rate of car title loans - for a term of less than 181 days - offered to members of the Armed Forces cannot exceed 36%. . Most fees and costs, with a few exceptions, must be included in the interest rate. In addition, to grant the loan, the lenders cannot require the use of a check or request authorization to access a bank account, require binding arbitration, or send unjustified legal notifications. In addition, consumers who are members of the Armed Forces must receive certain informative statements about the costs of the loan and their rights as borrowers. Loan agreements that violate these protections are invalid. Lenders offering car title loans may ask applicants to sign a statement showing their military affiliation.
Despite these protections, car title loans can be particularly expensive, especially if you are refinancing the loan. Therefore, you may want to find out if you can get financial assistance from relief societies for members of the Armed Forces, such as Army Emergency Relief, Navy and Marine Corps Relief Society, Air Force Aid Society, or Coast Guard Mutual Aid. You may be able to borrow money from family or friends, or ask your employer for a salary advance. If you need to take credit anyway, you may find loans offered by a credit union, bank, or small loan company that charge lower rates and costs than lenders who give you car title credit. They may have special offers for Armed Forces loan applicants, and they may be able to help you open a savings account. Another option could be a cash advance on your credit card, but this alternative could also be expensive. Before signing, find out the terms of any type of credit. You can seek free legal advice on a credit application from a legal aid office, or you can use a credit counseling service for advice on financing options, including extending your payments. Consumers who are members of the Armed Forces can contact.
