Loans and my debt

Here's an update on my financial situation. It'll be a medium post in length.

A couple of years ago, to repair my credit rating, I decided to take out a secured loan. Looking back, I shouldn't have done it. This loan company alleges that when you make regular payments to a secured loan, it helps your credit rating. Although somewhat true, repairing your credit rating takes time and dedication. It's not a quick fix like this company had implied. I didn't need to take this loan out.

Luckily, its term is only three years. I was closing in on two years of my loan. On Monday, I received a text message from the loan place saying that I could take out a cash loan thanks to my positive payments on my secured loan.

Now, I didn't want a cash loan. However, it allows the equity for the secured loan to get deposited back into my account and close that loan account. He said that I could pay off the new loan immediately. I decided to do it, as I just want out of both this secured loan and this cash loan that I never wanted.

The guy that I was dealing with was a pain as the process unravelled. I wanted the smallest loan amount possible, which is $2500. His confirmation text said $7500. Huh?

I also didn't want insurance protection, as I was going to pay the loan off immediately. At least he got that detail correct.

I have to call a special department to have my loan completely paid off. Fun! I wanted a specific day to have automatic payments come out of my chequing account to coincide with my payday. Nope, that didn't happen. It's the same special department that I need to get that changed. Even though I am not making regular payments, I'd rather be safe than have money taken out of my account that I have not budgeted for.

He asked for my bank statement overs the last three months. Since we were texting, I sent them that way. He then asked for them sent to his e-mail account. Why not say that to begin with? I actually had to download the statements from my laptop and transfer them over to my phone. I could have avoided the extra work.

During this process, I felt like this guy wasn't clear and upfront. He wanted a pre-authorized form filled out with my banking information. I put the company name in. When he got it, he wanted it blank. Well, why not tell me that upfront? I'm sending you a document with my banking information through the Internet. How safe is that it have any person take that information and authorize taking money out of it when the company name is blank?

Yeah, I had it. I told him off that I didn't appreciate these missing details, including the loan term. He frankly wasn't understanding my point of view. I told him so and said that we need to move on. I was tired of texting him who had the listening skills of a brick wall. I'm sure that I hit 100 text messages just to this guy by the end of this loan setup.

In the end, the loan money has been deposited to my bank account. My secured loan has been closed. I am waiting for the equity to get deposited. I'll call this special department to pay off this loan and close this account later on today.

What I am not thrilled with is the fact that having this loan company do a credit check on me will temporarily make my credit rating go down. It's sad that I simply couldn't pay off the secured loan without opening another loan. Then again, the secured loan was at a higher rate of interest and it's really not worth going through the loan for another thirteen months.

Other than this weird loan situation, I am thrilled that I can make more payments towards paying off my debt and improving my financial situation.