What determines your interest? Do you know everything about how to get approved for a loan under difficult financial circumstances? As the financial pressures in your life increase, you need to start focusing on the way you borrow and spend money. If you have significant financial issues, it’s likely because you have been trying to live above your means. It’s time to start practicing a little more fiscal responsibility.
If you have been relying on credit (CR) cards and payday loans to finance your monthly living expenses, the amount you have been paying in interest each month is probably exorbitant. It might be time to pay off those cards and stop living in the cycle of payday borrowing. SkyCap can show you how to get approved for a loan you can actually afford.
What We Do at SkyCap Financial
Each business day, we encounter prospective borrowers who have one important thing in common. They find themselves dealing with financial issues that threaten to compromise their financial stability. We don’t like seeing anyone struggling to meet their monthly financial obligations.
Sooner or later, everyone needs a financial boost. To help, we offer loans to prospective customers who are near-prime or subprime borrowers. A lot of our current borrowers came to us after battling with a payday loan company that was more than happy to hit them with massive loan fees and crazy interest rates. Some of our more fortunate customers were able to find us before falling prey to payday lenders.
To qualified borrowers, we are offering loans from $500 up to $10,000. Based on certain criteria (see below), we offer our loans with APRs ranging from 12.99% to 39.99%. Finally, our loans carry payment terms of 9 months up to a maximum of 36 months. We do charge minimal loan processing fees and fees for NSF checks.
There is one more thing we like to do. We educate our customers on personal finance issues and how to get approved for a loan despite having credit issues.
What Determines My Interest Rate?
The interest you pay on your debt is going to have a direct effect on your finances. It’s going to determine how much you have to pay in total loan costs for the right to borrow money. It’s also going to determine how much cash you will have to send out the door in monthly loan payments.
Clearly, you want a loan with the lowest APR possible. When you come to us, we do not have any preconceived idea of what we are going to offer you as an interest rate. We first have to see your application before we make any decisions. That also applies to loan terms and amounts.
Here is how we go about determining your applicable interest rate. Again, it all starts with your retail or online loan application. We will use this information to create a “CR profile” for you. Note: You might receive preapproval for a loan. That does not mean we have officially approved your application. It simply means we have seen enough to continue with the approval process.
To create your profile
To create your CR profile, we will require you to submit proof of employment via a paystub or payment remittance from your employer. We will also require you to submit the documents we deem necessary for us to determine your creditworthiness. As our underwriters review your file, they will be looking closely at your payment history. The information won’t necessarily come from only your CR report, but more specifically, we will also extract information from the documentation you have provided at our request.
As for your financial history, we don’t want you to worry too much about how we are going to view it. As personal subprime lenders, we are quite used to dealing with customers with a less than desirable CR rating. It’s only one of several things we factor into the decision making process.
All of this information will play a part in painting a creditworthiness picture in the minds of our underwriters. Using this picture as their guideline compared to our overall corporate lending guidelines, they will be able to determine four things:
- Whether or not we can approve your loan application
- The maximum amount we can allow you to borrow
- The applicable APR that we will attach to your loan
- How many months we can give you for repayment
If you receive our approval and accept our terms, you can select any loan amount up to the maximum we will allow and count on having your money in hand within 24 hours in most cases.
How Big a Difference Can the APR Make on Interest?
With all of your loans and unsecured debt, you should have an understanding of how the interest you are paying each month is impacting your financial stability. To help you understand how to go about getting that understanding, we want to present you with an example.
Example: We will assume you are looking for a loan or loans in the amount of $2,000. You come to us, and we approve you for a loan of $2,000 to be repaid within 24 months with an APR of 19.99%. Here’s are the results for the monthly payment and interest cost calculations: $101.78 per month, total int. of $443 over the life of the loan.
As near-prime loans go, this would be a petty good deal for you. It indicates we had a positive view of your creditworthiness. With that said, what if our view was less favorable, and we offered you the same loan with an APR of 29.99%? Take a look at it what it would do to the calculations: $111.82 per month, total int. of $684 over the life of the loan. While $10 more a month might not seem like much, being financially responsible means valuing every dollar you spend on loans or anything else.
You now have enough knowledge on how to get approved for a loan regardless of your financial standing. You can use this knowledge to make sure you borrow what you can afford when you can afford to do it. If that time is now, SkyCap Financial is here to help.