Why To Never Ask Banks For Help Paying Electric Bill
When you need help paying electric bill it may be tempting to head to your bank and ask them for a small loan or some type of cash advance, but there are a few reasons why this may not be the best idea and why an online payday loan might be a simpler approach. Let us explain why.
When Do You Actually Need Help Paying Electric Bill?
It’s important to make sure that you actually need help before you look for help. In most cases, you may not even need any help paying electric bill.
Your energy provider won't be able to switch off your electricity the moment you have missed a single bill. It is normally going to take a few missed payments before this becomes a reality. After all, utilities have some legal protections.
This means that if you miss one payment and you are fairly confident that you can get back on track the following month, then there might be no need to get assistance right away.
Yes., You will likely need to put up with a late payment fee for missing one bill, and it may have an impact on your credit score. However, a single missed payment isn't that bad. Just don't make it a habit.
Why You Shouldn't Ask Your Bank For Help
There are a few reasons why you may not want to reach out to your bank if you need help paying electric bill.
1. Electric Bills Will Never Be That High
Chances are that unless you have missed more than one or two payments, your electric bill probably isn't going to be very high. We are talking a couple of hundred dollars, at the most.
Most banks will not give out loans for this amount of money. This means that if you do end up getting a loan from your bank, you are likely going to be borrowing more cash than you actually need to borrow. This means that you are going to be putting yourself in more debt than you need to put yourself in.
We always suggest that people only ever borrow the cash that they need to borrow. It makes life a lot easier, and it helps to combat frivolous spending.
2. Hit To Your Credit Score
When you apply for a bank loan, even if you are not approved, it is going to have a hit on your credit score. This can make it tougher to borrow in the future.
If you ever miss payments on your bank loan, then this is also going to be recorded on your credit score. Many people don't realize just how difficult it can be to keep up with the repayments on a loan, particularly if you have had issues covering electric bills in the past.
3. Long-Term Debt
Bank loans aren't designed to be paid off within a month or two. Many bank loans have a minimum term of 6-12 months. This means that you would be saddling yourself with months of debt in an effort to cover just one payment, which seems somewhat odd.
4. Banks Take A Long Time To Approve Loans
Most people that need cash to cover an electric bill need it quickly, within a few days. The problem is that the vast majority of banks don't actually work quickly. Quick loan approval from a bank can take a week or two. Many loans can take a whole lot longer to be approved.
This means that bank loans are never going to be a good option for those that need to quickly cover short-term emergency expenses like electric bills.
5. Your Bank Might Not Approve You
Many people underestimate just how difficult it can be to get a bank to issue a loan. Your credit score needs to be amazing. There usually is a long list of required documents as well. This means that it is just going to take a lot of work and time to get a loan from a bank and you may not get approved in the end.
How Is A Payday Loan Any Different?
A payday loan is a short-term loan. It is designed to be paid off on your next payday. Such a loan from Carolina Payday Loans, Inc. can be an option for those that need help paying electric bill since these loans are small-to-medium sized. They also have a much speedier approval process and simple requirements.
We can issue a payday loan of up to $550, depending on your personal circumstances. Unless you have missed countless electric bills, this should be more than enough to provide you with help paying electric bill.
The Payday Loan Process
Our inquiry process has been designed to be as easy as possible. It all begins by filling in a short inquiry form for online payday loans. You will then be contacted by one of our representatives to answer any questions you have, and inform you of the necessary paperwork (your most recent pay stub, a blank check from an active checking account in your name, and a government-issued ID).
The process will then be continued at your local Carolina Payday Loans, Inc. location, where the representative will review your documents to confirm that you qualify. If you do, you will be asked to sign a few documents and you will receive your money on the same day or the following business day.
Inquire About A Payday Loan Today
When you need help paying electric bill, you should think twice before heading to your bank. Instead, you may find that a payday loan is an option worth considering. With Carolina Payday Loans, Inc., you can borrow up to $550. Start the process by filling in the short inquiry form today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.