Discussion:
Re-Applying for a loan after rejection
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Google Beta User
2005-08-11 13:44:37 UTC
Permalink
Greetings,

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?
Will a good friend co-signing help? She'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?). What sorts of places are lenient
with credit loans?

I'm just not in a good situation at all.
Mike Berger
2005-08-11 15:01:28 UTC
Permalink
A co-signer would help, but then that person would also be
on the hook for the loan. It would have to be an awfully
good friend. You would be better off getting an additional
part-time job for a while to get ahead. How will you pay
off the loan if you need it to cover living expenses in
the first place?
Post by Google Beta User
Greetings,
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?
Will a good friend co-signing help? She'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?). What sorts of places are lenient
with credit loans?
I'm just not in a good situation at all.
w***@gmail.com
2005-08-11 16:08:33 UTC
Permalink
<< A co-signer would help, but then that person would also be
on the hook for the loan. It would have to be an awfully
good friend. >>

Yes. It's a very good friend. Should we apply at the same bank or a
different one?

<< You would be better off getting an additional
part-time job for a while to get ahead. How will you pay
off the loan if you need it to cover living expenses in
the first place? >>

The loan amount I'm asking for is $2,000. Thing is I need it RIGHT NOW.
To cover August expenses, and get utilities back up to current. In
reality I only need a little more than $1,000 but I'll use the rest to
start paying back the loan monthly or in whatever increments.

I'm still unclear as to wether to report gross income or net income
when applying for loans.

Thanks for your response,
John Weiss
2005-08-11 16:33:09 UTC
Permalink
A co-signer will help significantly.

Report gross income unless otherwise asked.

Apply at a bank where you (or your co-signer) already have an account.
Post by Google Beta User
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?
Will a good friend co-signing help?
Bock
2005-08-11 16:49:14 UTC
Permalink
Post by Google Beta User
Greetings,
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 User
Will 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 User
She'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 User
What 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 User
I'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.
JerryL
2005-08-11 17:48:11 UTC
Permalink
Post by Google Beta User
Greetings,
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.
I cosigned a car loan for a very, very good and close friend. After a month,
I got my bank statement and money was taken out of my account. I called the
bank and they told me that my 'very, very good' friend didn't even bother to
make the first payment. I wound up making 6 payments on a car that he had
and that I couldn't even repo because it was not in my name. Luckily, his
father was my partner in a business and I bought him out. In my payment for
my half of the businees, the father agreed to let me deduct the whole price
of the car loan and pay it off.
Moral of the story? I wouldn't cosign a note for anyone walking on this
planet or anyother planet no matter how sincere they sounded.
Logan Shaw
2005-08-11 20:36:59 UTC
Permalink
Post by JerryL
I cosigned a car loan for a very, very good and close friend. After a month,
I got my bank statement and money was taken out of my account. I called the
bank and they told me that my 'very, very good' friend didn't even bother to
make the first payment. I wound up making 6 payments on a car that he had
and that I couldn't even repo because it was not in my name.
The trouble is, the fact that they *need* a co-signer is a very strong
indicator that they already aren't consistent about making payments, so
why should you expect them to be in the future? There are other possible
reasons (such as being young and simply having no credit history at all,
which makes you a bad risk only because you're unknown), but for the most
part, the prospective lender is correct in their assessment that they
can't rely on that person to make their payments. Which means you, the
friend, can't rely on it either.

- Logan
c***@yahoo.com
2005-08-11 17:23:18 UTC
Permalink
I've been in a similar situation, and in my opinion if you can possibly
avoid taking out another loan, do so. Taking a second job, if just for
a few months, can really help out. Yes, it's exhausting and stressful,
but so is being in a financial jam. Not so easy if you have kids,
though, and sometimes a loan is absolutely necessary.

If you go the loan route, see if you're eligible to join a local credit
union. They often have more lenient terms and rates than a major
National Bank. Beyond that, try a local bank, or even a National bank
with good local people you can talk to. Sometimes presenting your case
to an actual person can help your cause. Do you have a friend or
relative who is financially secure enough to loan you the money
directly?

If you do get a loan from a friend, or use them as a co-signer, only do
it if you're 150% sure you can and will pay the loan back in a
relatively short time, and if you're sure that if something happens
beyond your control (you're hit by a bus and can't work, for instance),
that the co-signer could carry the loan amount financially and would
understand and work with you if you were in dire straights. Bock is
absolutely right when he says most people who co-sign loans don't
realize what they're getting into. I think it's a viable option, but
one you should only take as a last resort and after carefully talking
it over with your friend & seeing how they feel about a worst-case
scenario.

Finally, as a victim of identity theft, I strongly recommend you fight
it. File legal charges against the perpetrators if you know who they
are, and don't pay a cent on any bill you don't legally owe. There are
many good online sources that can help you here. I recommend
www.privacyrights.org/identity.htm as a good place to start. Fighting
this is a royal pain and time consuming, but the sooner you start
fighting it, the better. Trust me on this. ID theft problems only
mushroom if you ignore them, and the sooner you protest items on your
credit reports and file legal charges, the easier it'll be to deal with
in the long run.

Best of Luck!
SpammersDie
2005-08-11 20:22:02 UTC
Permalink
Post by c***@yahoo.com
If you do get a loan from a friend, or use them as a co-signer, only do
it if you're 150% sure you can and will pay the loan back in a
relatively short time, and if you're sure that if something happens
beyond your control (you're hit by a bus and can't work, for instance),
that the co-signer could carry the loan amount financially and would
understand and work with you if you were in dire straights. Bock is
absolutely right when he says most people who co-sign loans don't
realize what they're getting into. I think it's a viable option, but
one you should only take as a last resort and after carefully talking
it over with your friend & seeing how they feel about a worst-case
scenario.
This good friend would be smarter to loan the $2K to the OP herself.

That way, when the OP defaults, the former good friend is only out $2K as
opposed to being out $2K + lot of penalties beyond her control + her credit
rating.

If this good friend isn't in a financial position where she can loan the OP
$2K off the bat like that, then she would be smart not to cosign the loan at
all.
Logan Shaw
2005-08-11 20:57:20 UTC
Permalink
Post by Google Beta User
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.
My advice, which is free, so take it for what it's worth: don't get
a loan. I'm not trying to be harsh on you, but people who haven't
done well in the past with making payments aren't likely to do well
in the future.

Suze Orman (who dresses weird but who gives great advice on her TV
show and seems to genuinely care about people) made a good point one
time on one of her shows. Someone was asking if bankruptcy was a
good idea, and she said that, statistically, people who declare
bankruptcy once will more likely than not declare it a second time
somewhere down the road. The reason is, the bankruptcy gives them
some relief, and then they feel the problem is solved and they don't
come to grip with reality and actually change the patterns of behavior
that led to the situation in the first place. And guess what? The
same habits that got them to that point the first time do the exact
same thing again next time.

Taking out a loan is not nearly as drastic a measure as declaring
bankruptcy is, but let's be realistic: if you have bad enough credit
that you can't get a loan, there is a good chance that, if you do,
you will not end up making the payments. Then you will be in WORSE
shape than you are now. Whenever you take out a loan, you need to
sit down and answer the question, "What is my plan for repaying this
loan? Where is the money going to come from?". (It's also good to
answer that question about someone else if you are considering
lending them money.) Since your situation is already tight and your
income is fairly low, and you apparently didn't have money saved, and
your roommate is being an extra problem (and you haven't mentioned that
you have a plan to solve that problem), my guess is that there is no
place for the extra money for the loan payments to come from.

My advice is to get your financial situation straightened out the
only way that really works: figure out a way to spend slightly
less than you make each month. Then, you can use the excess (even
if it's only $100/month) to pay down your bills gradually. I know
it's much less appealing to seemingly drag the problem out over
months, but it's the only way to really solve the problem, and if
your electricity, etc. hasn't been cut off already, you can make
it through as long as you're getting slightly closer to caught up
each month.

Also, ditch the roommate any way you can, and replace them with
someone who's responsible and won't drag you down! :-)

- Logan
w***@gmail.com
2005-08-11 21:12:46 UTC
Permalink
Ok guys, some more background info, and an alternative to a loan. You
all seem to be against a loan and here is my alternative:

My roommate is getting kicked out. She's due out on the 15th. But she's
refused to pay what she owes. So that's the hole I'm in on top of the
cash that I lost.

I had worked myself up to a level where I was paying rent/utilities ON
TIME for a year now.

Then the last two months struck.

The reason I need a loan, is just to make a few utilities current. Then
payoff a short-term loan from one of those online cash advance type
websites. And to make sure I'm covered for September's rent while I
search for a roomate. The total of all of this is about $1,300 or so.
I'm going to use the other $700 to start paying back the loan. By
October, I should be back into a groove like I was before in which my
income is paying for everything. Oh, I've borrowed money. And I'm
adjusting my utility set-up. No more telephone, no more cable, and I've
switched to Comcast Cable just to get the $19.99 6 month special.

Most of you are suggesting no loan. The other alternative is that I
will default on one of the cash advance sites. What would happen then
is that they'd take me to collections/court. Am I making sense here?
When that happens, I'd payback $700 instead of $2,000. Pros: I'm paying
back $700 instead of $2,000. Cons: Court/Collection agency on credit
report again.

So either way, short-term future not looking too good. I feel you all
on the 'don't take a loan' responsibility though. How long do legal
collection proceedings from online advance sights take until you are
taken to court?

So the question is 'allow default on Advance Website' or 'take on a
$2,000 - $5,000 loan'?
c***@yahoo.com
2005-08-11 22:01:19 UTC
Permalink
Given these circumstances, I'm modifying my advice: I'd take out a
loan in this situation, enough to ride you through the next few months.
As suggested above, I'd try a credit union first, then a small and/or
local bank. As a last resort, use a friend or relative, but I really
think you should make sure they can afford to carry the loan in case
something else beyond your control occurs.

I didn't mean to suggest I'm totally opposed to loans. My folks took
out a loan for me years ago that helped me consolidate my debts, and I
was able to take advantage of their good interest rates and favorable
terms. The loan's in their name but I pay the note. So by all means,
if a loan will help, take it.

Sounds like you're cutting all you can on the expenses angle. I still
suggest looking at other ways to make extra money in the short term--a
part-time job, selling stuff on eBay, etc. But in the long run,
cutting expenses and a good roommate are probably your best
alternatives.

Once again, good luck!
John Weiss
2005-08-12 01:44:00 UTC
Permalink
Post by w***@gmail.com
The reason I need a loan, is just to make a few utilities current. Then
payoff a short-term loan from one of those online cash advance type
websites. And to make sure I'm covered for September's rent while I
search for a roomate. The total of all of this is about $1,300 or so.
I'm going to use the other $700 to start paying back the loan. By
October, I should be back into a groove like I was before in which my
income is paying for everything. Oh, I've borrowed money. And I'm
adjusting my utility set-up. No more telephone, no more cable, and I've
switched to Comcast Cable just to get the $19.99 6 month special.
When asking for advice, why didn't you give the full story up front? Advice
can't be any better than the information used to solicit it!

How much did you borrow via the "cash advance"?

How much do you owe others? What interest rates/monthly payments?
Post by w***@gmail.com
Most of you are suggesting no loan. The other alternative is that I
will default on one of the cash advance sites. What would happen then
is that they'd take me to collections/court. Am I making sense here?
When that happens, I'd payback $700 instead of $2,000. Pros: I'm paying
back $700 instead of $2,000. Cons: Court/Collection agency on credit
report again.
"ONE" of the cash advance sites?!? How many do you owe?!?
Post by w***@gmail.com
So the question is 'allow default on Advance Website' or 'take on a
$2,000 - $5,000 loan'?
Now you're changing the story AGAIN! Now you need somewhere between $2000 and
$5000, instead of between $1300 and $2000!

You need professional credit counseling, not an Internet jam session! Find one
through your local welfare office, your bank, the phone book, or friends.
w***@gmail.com
2005-08-12 12:59:19 UTC
Permalink
<< How much did you borrow via the "cash advance"? >>

$500

<< How much do you owe others? What interest rates/monthly payments?
I've just finished paying off $500 for a hospital bill via Wolpoff
Collection Agencies. I have a $700 Verizon bill that was taken to a
collection agency from 3 years ago mainly because - and I realize I am
too forgiving of rooomates - of an old roommate. This guy was a friend
though, but he passed away this summer. Other utilities (electricity,
car insurance, gas, phone, cellphone) are paid up to June, some of them
up to July. Then ofcourse I run into the theft/fraud stuff. But
priority is to make sure there is a roof over my head, so I have to
take care of rent first.

<< "ONE" of the cash advance sites?!? How many do you owe?!? >>

I owe $600 to quikpayday on August 26. I can request one more
extension up to September 9 for a charge of $100. My predicament, which
granted is perhaps panic, is that I need to take care of NOW first. I
pay $600 rent on the 10th of every month.

<< Now you're changing the story AGAIN! Now you need somewhere between
$2000 and
$5000, instead of between $1300 and $2000! >>

I've spoken to two banks, one's minimum is $2,000 and the other is
$5,000, so even though I need $1,300 so far, from the place's I've
spoken too that's the loaned figure I'm looking at. Already applied for
the $2,000 line of credit over draft protection for which was rejected,
then I came here.

<< You need professional credit counseling, not an Internet jam
session! Find one
through your local welfare office, your bank, the phone book, or
friends>>

I will look into that, thanks.

Lessons I'm learning.

1) Screen and be strict with roommates.
2) Savings account. Even pennies a day. A separate savings account is a
must.
John Weiss
2005-08-12 15:22:52 UTC
Permalink
Post by w***@gmail.com
<< How much did you borrow via the "cash advance"? >>
$500
<< How much do you owe others? What interest rates/monthly payments?
I've just finished paying off $500 for a hospital bill via Wolpoff
Collection Agencies. I have a $700 Verizon bill that was taken to a
collection agency from 3 years ago
Other utilities (electricity,
car insurance, gas, phone, cellphone) are paid up to June, some of them
up to July. Then ofcourse I run into the theft/fraud stuff.
I owe $600 to quikpayday on August 26. I can request one more
extension up to September 9 for a charge of $100. My predicament, which
granted is perhaps panic, is that I need to take care of NOW first. I
pay $600 rent on the 10th of every month.
Let's see... $500 on one cash advance that you can't afford, added to $600 on a
previous cash advance you can't pay, with an interest rate of 433% (16% for 2
weeks, converted to an annual rate), and $700 from a previous unpaid phone
bill!!!

And now you're wondering why a bank won't give you a LINE OF CREDIT?!?

You don't need a phone AND a cell phone. Get rid of the more expensive one
and/or the one without cancellation penalties.

Sell your car and buy a bicycle and/or take a bus -- IT DOESN'T MATTER if it
takes you longer to get to work! Use the $$ from the car to pay off the "cash
advance" agents.
Post by w***@gmail.com
<< You need professional credit counseling, not an Internet jam
session! Find one through your local welfare office, your bank, the phone
book, or friends>>
If you haven't talked to that credit counselor yet, TURN OFF YOUR COMPUTER NOW
AND DO IT!
Janie
2005-08-12 18:56:48 UTC
Permalink
Post by w***@gmail.com
<< How much did you borrow via the "cash advance"? >>
$500
<< How much do you owe others? What interest rates/monthly payments?
I've just finished paying off $500 for a hospital bill via Wolpoff
Collection Agencies. I have a $700 Verizon bill that was taken to a
collection agency from 3 years ago mainly because - and I realize I am
too forgiving of rooomates - of an old roommate. This guy was a friend
though, but he passed away this summer. Other utilities (electricity,
car insurance, gas, phone, cellphone) are paid up to June, some of them
up to July. Then ofcourse I run into the theft/fraud stuff. But
priority is to make sure there is a roof over my head, so I have to
take care of rent first.
<< "ONE" of the cash advance sites?!? How many do you owe?!? >>
I owe $600 to quikpayday on August 26. I can request one more
extension up to September 9 for a charge of $100. My predicament, which
granted is perhaps panic, is that I need to take care of NOW first. I
pay $600 rent on the 10th of every month.
<< Now you're changing the story AGAIN! Now you need somewhere between
$2000 and
$5000, instead of between $1300 and $2000! >>
I've spoken to two banks, one's minimum is $2,000 and the other is
$5,000, so even though I need $1,300 so far, from the place's I've
spoken too that's the loaned figure I'm looking at. Already applied for
the $2,000 line of credit over draft protection for which was rejected,
then I came here.
<< You need professional credit counseling, not an Internet jam
session! Find one
through your local welfare office, your bank, the phone book, or
friends>>
I will look into that, thanks.
Lessons I'm learning.
1) Screen and be strict with roommates.
2) Savings account. Even pennies a day. A separate savings account is a
must.
A savings account is though, but if you end up taking money out on a regular
basis it could become a problem. I am not say it will, just that it could.
A student friend of mine had a savings account and got complaints from the
bank because he made so many small withdrawals during a short period of
time.

You may want to consider having two checking accounts. I have one for
general everyday stuff such as buying groceries for the week, picking up
stuff at Wal-Mart, and other day- to -day expenses. I also have a second
account where I keep money for rent/house payment, utility bills, bank card
payments, insurance, taxes and other bills that get paid from home rather
than at point of purchase. I know the money in the second account has to go
for necessary items and using it for other things will only get me in
trouble. The money in the first account is flexible because I can adjust
the amount I spend on groceries, clothes, household items, and recreation
based on the account balance.
**********
The most important part is for you to find a system that works for you and
and stick with it. ******************

I agree about the roommate situation. People keep trying to move into my
home but I keep refusing. Go it alone so you don't have to worry about
situations created by other people. However, if your roommate left you
stuck with bills or owes you money, consider small claims court unless the
amount is too small to be of much importance.
Logan Shaw
2005-08-13 00:43:34 UTC
Permalink
Post by w***@gmail.com
I owe $600 to quikpayday on August 26. I can request one more
extension up to September 9 for a charge of $100. My predicament, which
granted is perhaps panic, is that I need to take care of NOW first. I
pay $600 rent on the 10th of every month.
Wow, I thought loan sharks were illegal. That is a HUGE amount of money
($100) to pay for a two-week extension.

Now that I know you already have a loan (on really bad terms), my
advice is different: if you can't find a source of cash (selling
something valuable like a big screen TV or something) to pay it
off, then you need to get yourself a loan with better terms and
lower rates as soon as possible.

One idea is to get a credit card. Lots of them will let you do a
balance transfer with low interest rates on the transferred balance.
You don't really want credit card debt, but it's way preferable to
pay 20% per year on some credit card than 16.67% every two weeks
with this quikpayday thing.

From there, once you are in less of a crisis situation, you can
work on "refinancing" again. Maybe you can get a debt consolidation
loan to pay off the credit card and reduce the rates even further.
Or sometimes, if you keep getting offers for balance transfers with
good rates, it might be preferable to just transfer the debt from
one credit card to another while you are paying it off.

By the way, if you do use a credit card, I recommend that you get a
separate card just for this debt and don't use it for much of anything
else (maybe charge $10 every six months just to keep it active in
their computers). The reason is, some credit cards charge you no
interest on purchases for the grace period (30 days or whatever) if
you don't carry a balance, but if you do have a balance, then you get
charged interest on everything immediately, even brand new charges.
So, if I understand the rules correctly, it's better to make new
charges only on cards that don't have an outstanding balance. Or,
of course, if you aren't good with credit cards, don't make any charges
and just use it as a way of getting away from these quickpayday loan
sharks.

Also, have you tried printing out the terms of the loan from quikpayday
and showing these to your roommate? Does your roommate know that
their unwillingness/inability to pay you on time is going to force
you to pay $100 in a few weeks? My guess is your roommate has financial
issues as well to deal with, but sometimes having a deadline that can
be backed up by stuff in black and white can motivate people. At least
they know that whether they pay you what they owe you by the 26th can
make the difference on whether you're forced to flush $100 down the
toilet. If they have some sense of decency and any way to do something
about it, perhaps that will motivate them some.

Speaking of which, does the roommate have anyone (friends or family)
that can help them pay you? If they're relatively young (like college
age), perhaps they have parents who would be willing to pay on their
child's behalf the money their child owes you. In some cases they
might do that to cover for their child and in others just to avoid
tarnishing the family's image. It's sad to have to think in terms
of forcing your problem to become theirs, but the real fact of the
matter is that when your roommate owes you money, it should be your
*roommate's* problem and not yours.


Finally, another thing to check into: perhaps this payday loan you
got from quikpayday actually *IS* illegal! Some quick googling for
"payday loan illegal" and similar things seems to indicate it is
illegal in some states. For example, supposedly in Georgia, it's
illegal, but rarely enforced, but part of the law is that it's not
legal for the lender to try to collect on the loan!

One of other posts mentions you applied for a loan from Maryland
Bank, so if it's safe to assume you live in Maryland, then you
should probably check out this site:

http://www.mdconsumers.org/II_CURRENT/current_projects_index.htm

Under the "Payday Loans" section, it says this:

Maryland Consumers has been working to keep payday lending
illegal in Maryland. . . During the 2001 legislative session
Maryland Consumers worked with other non-profit groups and
government agencies to thwart an industry attempt to legalize
payday lending in Maryland.

You might try calling or e-mailing them with the contact info they
have on their contact page. Even if they can't help you with the
payday loan issue (maybe quikpayday does things on terms that are
actually legal even if shady), perhaps they can give you some good
advice or help you in other areas somehow.

- Logan
The Real Bev
2005-08-13 01:50:21 UTC
Permalink
Post by Logan Shaw
Post by w***@gmail.com
I owe $600 to quikpayday on August 26. I can request one more
extension up to September 9 for a charge of $100. My predicament, which
granted is perhaps panic, is that I need to take care of NOW first. I
pay $600 rent on the 10th of every month.
Wow, I thought loan sharks were illegal. That is a HUGE amount of money
($100) to pay for a two-week extension.
If you think that's bad, check out the payday-loan business.
--
Cheers,
Bev
+++++++++++++++++++++++++++++++++++++++++++++++++++++
"Rats cry when they hear about my life." -- Dilbert
John Weiss
2005-08-13 02:29:42 UTC
Permalink
Post by The Real Bev
Post by Logan Shaw
I owe $600 to quikpayday on August 26. I can request one more extension up
to September 9 for a charge of $100.
Wow, I thought loan sharks were illegal. That is a HUGE amount of money
($100) to pay for a two-week extension.
If you think that's bad, check out the payday-loan business.
What is "quikpayday" if not a "payday-loan business"?
Bob Ward
2005-08-13 02:36:12 UTC
Permalink
On Fri, 12 Aug 2005 18:50:21 -0700, The Real Bev
Post by The Real Bev
Post by Logan Shaw
Post by w***@gmail.com
I owe $600 to quikpayday on August 26. I can request one more
extension up to September 9 for a charge of $100. My predicament, which
granted is perhaps panic, is that I need to take care of NOW first. I
pay $600 rent on the 10th of every month.
Wow, I thought loan sharks were illegal. That is a HUGE amount of money
($100) to pay for a two-week extension.
If you think that's bad, check out the payday-loan business.
What do you think quickpayday is?
The Real Bev
2005-08-13 05:39:31 UTC
Permalink
Post by Bob Ward
On Fri, 12 Aug 2005 18:50:21 -0700, The Real Bev
Post by The Real Bev
Post by Logan Shaw
Post by w***@gmail.com
I owe $600 to quikpayday on August 26. I can request one more
extension up to September 9 for a charge of $100. My predicament, which
granted is perhaps panic, is that I need to take care of NOW first. I
pay $600 rent on the 10th of every month.
Wow, I thought loan sharks were illegal. That is a HUGE amount of money
($100) to pay for a two-week extension.
If you think that's bad, check out the payday-loan business.
What do you think quickpayday is?
Duh. I read the problem but missed the name.
--
Cheers, Bev
------------------------------------------------------------------------
"Give a man a fish, and you feed him for a day. Tell him that the
government will give him lots of fish and he will vote for you forever.
When he doesn't get any fish, blame the other guys." --A Taxpayer
w***@gmail.com
2005-08-14 01:12:32 UTC
Permalink
No. My roommate and I are not on good terms. She's flat out not paying
what she owes. I have e-mails where she specifically states, "yes, I
use the phone and the internet but I'm not paying".

I gave her a 30 day notice on July 15 to move out, because she was
never on time with the rent. And also one of the peoples names on the
checks that were stolen were of a friend fo hers. She's NEVER been on
time with any payment. Also, she once gave me notes for a late payment
that folded exactly like they did in my wallet.

You add up the cash theft from her 'friend', late fees incurred by this
mess, and the amount of money that she's refusing to pay, and I
wouldnt' have even needed a quikpayday loan in the first place.
Remember I had paid bills and rent on time consistently for 1 year, and
I had just finished paying off some of the debt I owed.

Small claims court is something I'd consider, what kind of proof do you
need for that?

But still, this is a life lesson.
John Weiss
2005-08-14 02:25:53 UTC
Permalink
Post by w***@gmail.com
No. My roommate and I are not on good terms. She's flat out not paying
what she owes. I have e-mails where she specifically states, "yes, I
use the phone and the internet but I'm not paying".
Small claims court is something I'd consider, what kind of proof do you
need for that?
Seems you already have it...
Chloe
2005-08-14 11:40:12 UTC
Permalink
Post by John Weiss
Post by w***@gmail.com
No. My roommate and I are not on good terms. She's flat out not paying
what she owes. I have e-mails where she specifically states, "yes, I
use the phone and the internet but I'm not paying".
Small claims court is something I'd consider, what kind of proof do you
need for that?
Seems you already have it...
I think some details of how small claims courts work vary from state to
state. However, when you get a judgment against someone you still have to
actually collect. So small claims works well for resolving issues that are
in dispute and for things like getting money out of large companies or
entities which are responsible about paying once they know they a court has
said they owe. In this situation I wonder if a small claims judgment would
do much to compel the roommate to pay up.
Janie
2005-08-14 11:23:13 UTC
Permalink
Post by w***@gmail.com
No. My roommate and I are not on good terms. She's flat out not paying
what she owes. I have e-mails where she specifically states, "yes, I
use the phone and the internet but I'm not paying".
I gave her a 30 day notice on July 15 to move out, because she was
never on time with the rent. And also one of the peoples names on the
checks that were stolen were of a friend fo hers. She's NEVER been on
time with any payment. Also, she once gave me notes for a late payment
that folded exactly like they did in my wallet.
You add up the cash theft from her 'friend', late fees incurred by this
mess, and the amount of money that she's refusing to pay, and I
wouldnt' have even needed a quikpayday loan in the first place.
Remember I had paid bills and rent on time consistently for 1 year, and
I had just finished paying off some of the debt I owed.
Small claims court is something I'd consider, what kind of proof do you
need for that?
Copies of those e-mail messages should be helpful because they show she is a
mooch who refuses to pay for what she uses. The checks involved would be
evidence. (Did you report the situation with the checks to the police? If
so, there there should be a police report. Take that to small claims as
evidence.)

Include the 30 day notice since it shows you gave her proper legal notice
so she can't say you illegally forced her to leave. If you have any written
agreement with her about the rent or other expenses, that is an important
document.

Take all the bills in quetion that she did not pay. Make an itemized list
of everything she owes you. If there is any person who has direct knowledge
(not you told them but was actually there) about any of the financial
matters between you, get that person to be a witness. If you can get
somebody who say the person on the checks is a friend of hers, not yours ,
then that could help to put the balance of the judge's decision in your
favor. However, does't make her responible for the checks.

If you have a lease, is her name on it too? If so, that is a key to the
situation. If you have anything that shows she paid certain expenses in the
past that too could help your case. (Would show she did own the expense,
paid in the past and then quit paying.)

Janie, who watches too much Judge Judy, Judge Brown, Judge....... wishes you
success with claim against the moocher.
max
2005-08-14 13:48:54 UTC
Permalink
Post by w***@gmail.com
No. My roommate and I are not on good terms. She's flat out not paying
what she owes. I have e-mails where she specifically states, "yes, I
use the phone and the internet but I'm not paying".
I gave her a 30 day notice on July 15 to move out, because she was
never on time with the rent.
When you look in the mirror do you see the word "pmuhc"?

Unless she's on the lease -- and if she were "you" couldn't decide when
to kick her out w/o overt legal maneuvering -- you can throw her out in
a millisecond. Throw her shit out on the street immediately upon reading
this. A parasitic deadbeat deserves >0< consideration. This response
is the only possible correct action. Throw her shit out today. Let her
sleep in a dumpster. 30 days notice my ass. Fuck her.

.max

Mike Berger
2005-08-12 17:47:46 UTC
Permalink
Borrowing money to pay back borrowed money is rarely a good idea.
It seems like you'd be better off negotiating an extension on one
of your outstanding cash advance loans.
Post by w***@gmail.com
Most of you are suggesting no loan. The other alternative is that I
will default on one of the cash advance sites. What would happen then
is that they'd take me to collections/court. Am I making sense here?
When that happens, I'd payback $700 instead of $2,000. Pros: I'm paying
back $700 instead of $2,000. Cons: Court/Collection agency on credit
report again.
=
m***@wedoittoo.com
2005-08-12 20:06:15 UTC
Permalink
On 11 Aug 2005 06:44:37 -0700, "Google Beta User"
Post by Google Beta User
Greetings,
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?
Will a good friend co-signing help? She'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?). What sorts of places are lenient
with credit loans?
I'm just not in a good situation at all.
Walk into the bank with a large gun. Go to the person that handles
the loans. Hold the gun to their head as you stick a pen in their
hand and place your loan application on their desk. Loudly say "SIGN
OR DIE ASSH*LE" They WILL sign it. Guaranteed !!!!

NOTE: Be sure to include enough money on the loan to pay for your bail
lawyer and court expenses.
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