Bad Credit Signature Loan in Lubbuck Texas

Our next loan is a signature loan that was approved for $2500 in Lubbock Texas. This applicant lives in the Heart of Lubbock (name of actual area) and has been living there for over four years. He is a young person at the age of 25 years old, and fell behind in his payments on his rent because of some poor decisions he made over the last five years. He got wrapped up a little bit too much in his hobbies, and neglected to keep making the proper payments on his Visa Cards. This is a very common mistake with a lot of young applicants, so we want to highlight his story here today.

In Lubbock Texas we see on average three applications a day coming through our website from borrowers who have fallen behind on their finances and they need a way to get out from under some of their high interest debts. This is the case with this young applicant, and his debt was all on credit cards. Credit card debt is the most common form of personal debt on the planet, and certainly in the United States, and certainly in the State of Texas.

Lubbock is a full-size city with a fairly high population (270,000), so you can see why there are so many applications coming through the city online, on a daily and weekly basis. There are fortunately, quite a few lenders in the area who will give loans to people who have bad credit ratings, such as this borrower.

$2500 Bad Credit Signature Loan in Lubbuck Texas – Cost and Purpose

This borrower has a low fico score of 588, and trying to get a personal signature loan when you have a credit score that low is very difficult -indeed. In this case, you can see that the effective APR on the loan of $2500 was 22.75%. This is a very high APR, but in Lubbock the lenders don’t have to really follow any restrictions as far as what they can charge each borrower for their loan products. Even so, with such a high APR over a two-year term, this borrower paid a total of $592.34 in interest – all in all, that’s really not that bad as long as the applicant/borrower/customer gets their act together and stop spending money hand-over-fist every month.

As my father used to say, “it’s not how much money you make, it’s how much money you spend that matters”.

When it comes to personal finances, there is no truer saying. No matter what the economy is like, and no matter what your station in life is, you can learn to spend less money each month, and avoid getting stuck with high APR loans that just bleed you dry over time. Of course, everybody has to take on some debt, and we all take on debt sometimes that is unwise. Even so, if you can try to not make any emotional purchases you will, in time, get your financial house in order again. That is what this young borrower did.

$2500 Signature Loan in Lubbuck, TX – Lender Service Area

Interest, Principal, Term Length for Lubbuck Loan

Table of Data for $2500 Signature Loan in Lubbuck (pre and post app)

Lubbuck Borrower’s Loan Experience

Since this customer did not know, or understand, how bad his credit rating was, he had to learn the hard way by applying for some consolidation loans with his active bank branches.

He has a personal bank account at the American State Bank, a savings account at the Westex Federal Credit Union, and the checking account at the First Convenience Bank over on Marsha Sharp Freeway. All of these banks are located near downtown Lubbock.

He was turned down for any kind of credit from all three of these banks, and he soon learned that his fico score was only 588. He had no idea that his credit rating was so badly damaged, and when he looked into it it was because of some payments he had missed with two different creditors – Visa, and MasterCard. That’s all it took, and he pretty much cooked his goose with the three credit agencies (Experian, Transunion, Equifax)

So with this loan he got a principal loan of $2500, over a two-year term, with monthly payments of $127. His final payout payment was $170 approximately. The smart thing he did was get his spending under control, and at the end of the two years he would be fine if he just keeps being diligent with his budget.

He also did something else that really helped him with his personal finances, in that he got a small job part-time to make extra cash in South East Lubbock. He got a job delivering for a Courier three evenings a week and he delivers packages all over Lubbock and surrounding areas. This was really a two-pronged strategy that he had. He paid off his loan religiously, as per the terms that you see in the table below, and he also found out a way to make some more money. So with a controlled budget that he stuck to going forward, and finding a way to earn more money, he managed to quickly reverse his fortunes (so to speak).

This was a good ending to what could have been a much worse end-state. One thing that he did that was really smart was that he didn’t just give up after being declined by his banks in Lubbock. He used the Internet to look for some reputable lenders in Lubbock who were willing to lend money to people who have poor credit ratings, and a secure job. If you are unemployed, there is not really any chance that you will get approved for loan with anybody, and that includes conventional lenders, and nonconventional lenders such as this case. The only way you can get a loan and be unemployed, is if you have some sort of entitlement pay coming in monthly from such sources as pension, Social Security, 401(k)s, or self-employment. I won’t go any further into loans for unemployed people in this post, as we will do that at another time.