Loans to single mothers: opportunities to get quick help

September 01, 2017

Plenty of emergencies may demand additional money injections when you bring up children by your own. Fortunately, the U.S. credit institutions offer multiple credit options applicable for single parents, that can make life a little easier and bring hope into a hopeless situation. If you are a single mother (or father) you can apply for a traditional loan in bank or consider the offers of alternative micro-financing organisations that deal with your particular situation.

Short-term consumer credit is the easiest and the most expensive way to get money fast in the range from approximately $100 to $10,000, but get ready for huge interest rates and strict conditions. The key concern of lenders when dealing with loans to single parents is single source of income, which is considered as a risk. When they analyse the request filed by a potential borrower banks analyse your debt-to-income proportion, which is less impressive in incomplete families for obvious reasons.

If you have good credit history your bank probably had already offered you the opportunity to get a consumer loan within a day. But if your score is not that good, don't give up! The article: ā€œFive credit scoring mythsā€ will help to drive away panic and be aware of what is really going on in your credit history report. Bad credit history is not irreversible, you still can be considered as an applicant for a loan, depending on the level of income and the amount of single parent aid payments you receive from the government.

If you have low income and poor credit score, but decided to make a large purchase, such a home or a car, it makes sense to choose a low-budget item, so that the principal of your loan was as affordable as possible.

Don't forget that such options as debt consolidation and refinancing are available to you. Taking out second mortgage or refinancing an auto loan with bad credit are still possible, but the lender may charge additional fees to secure its risks. As for your student loan debt, single parents have good chances to qualify for debt forgiveness ā€” this may help you get rid of debt partially or even completely.

Single Parent aids and grants

If your credit history is not perfect, it is highly recommended to explore all the existing grants and financial aid opportunities available for single parents before diving into the new credit liabilities. Temporary financial difficulties may turn you into the perfect candidate for solid financial support programs. Usually, a grant is a non-return money reward or other form of financial or physical assistance provided by the government or a private organisation for a special purpose. Good news - grants are free of tax and fees.

The U.S. government and private companies give away grans for a variety of occasions. Lets say that you are a single mother who wants to start her own business ā€” there are special financial support programs designed by the state and local micro-financing companies to encourage such dreams.

Apart from loans, single mothers and fathers have the right to apply for such benefits as alimony, unemployment or disability payments, child support aid, and other forms of assistance for needy families.

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