Being a single mother should not always mean you will live from hand to mouth.
You can elevate yourself to financial freedom by borrowing those who have surplus money supply. If you know the power of loans, you know what I am talking about. However, it is not always easy to get a loan from a financial institution. You have to demonstrate the ability to meet your obligations as a borrower when they fall due. Here are a few tips on borrowing money for single mums.
Pay your debts first
One thing that a lender will always check is your ability to pay debts, what is commonly known as credit worthiness in the credit business.
Any lender will not have a problem lending money to a creditworthy borrower. On the other hand, if your credit rating is poor, you are a bad risk to the lender. Therefore, if you want to borrow money easily, pay your debts first. Don’t worry if you are not able to pay all your loans at a given time. You are not alone. Everyone is a defaulter. What matters is when the default actually happens.
Keep your assets in good condition
You can always use your assets as collateral to borrow money.
Therefore, keep them in perfect conditions at all times. Keep your car properly maintained, renovate your house and keep your home insurance valid. Someone evaluating your total net worth in order to advance a loan to you will want to know how much these assets can fetch if they were to be sold.
Get car title loans
There is an extra incentive to keeping your car in proper working conditions – getting a car title loan.
You can always get a loan against your car title and start carving your way back to financial freedom. Even when you have a poor credit rating, you can get title loans with no credit check and retain your car. These loans are very convenient for single mums because they don’t have as many requirements as other conventional loans. All that is required is a valuation report of the car, information on your sources of income and the car title. They also have convenient repayment structures on top of having very reasonable loan fees.
Establish a strong financial standing
One way of enhancing your credit rating is by establishing a strong financial position. When I say a strong financial position, I know you are thinking of someone with a bank balance of a million US dollars.
A strong financial position is simply a situation where you don’t live beyond your means. If you are not spending more than you earn, you are already comfortable. Then why not lend you some money? To establish a strong financial position, evaluate all your bills and come up with ways of reducing them. Either file for spousal or child support where applicable, get a better paying job or move to a cheaper house. Then increase your net worth by saving the little that you have. After a short while, convert these savings into investments.
Single mums can easily borrow money from lenders as long as they can demonstrate their ability to repay their loans.