Payday Loan – Remember, They Are Short Term Loans

Payday Loans are other wise called cash advances or paycheck advance loans. The amount is small ranging from $50 to $500, and the term is about two weeks. The interest rate is high for a payday loan. People who are in urgent need of money turn to the loan as the last resort, when they cannot trust the credit card or friends to raise some money.

You need not have a good credit history for being eligible for this loan, and the processing is very quick. You can procure the loan on telephone or Internet, and within 24 hours the money gets deposited in your account. It is hassle free and has no up-front cost, and no third person is involved.

The disadvantage of the loan is the high rate of interest, and it is important that you repay the loan by due date. The loan can be renewed, but you have to keep in mind that by the third renewal the renewal charges and APR is more than half of the loan amount, and by this rolling over the position of your finances further deteriorates. The US government too is concerned about these borrowers belonging to the lower and lower middle class, who run out of cash by the middle of the month once their bills are paid, and who are pulled into this cycle of debt due to some sudden expenditure incurred on account of a hospital visit or unplanned travel.

However, for someone with bad credit history and who cannot manage any other kind of loan, the payday loan is the only solution. It is only wise to use the money to meet the requirement and pay back the loan on time, and if possible set aside some money every month, and put together a crisis fund.

You can get a payday loan at any loan outlet and in case you do not find one in your neighborhood there is always the Internet, where the loan is just a click away. Generally such lending agencies stay open beyond the normal working hours, keeping in view the situations that force people to look for emergency funds. Therefore such agencies provide service to even those, whose money being in the form of term deposits, certificates or gold is not readily accessible.

Due to the speed in service, convenient locations and operating hours these loan companies are the favorite choice of the average working man who decides to go for the deal anyway. Because even after weighing the pros and cons, the decision of the borrower depends ultimately the gravity of the situation and his need.

Such cash advances are sometimes given against checks dated for the subsequent payday or sometimes against collateral like furniture. It is not advisable to jump for such an offer without paying attention to the other costs associated with it. When a friend or relative does not come to your aid with a hand loan and help you tide over, borrowing money from a loan company is the next available option, though the legitimacy of the company has to be checked. If possible browse the net for information regarding the company and cross verify the details provided like phone numbers, to avoid being cheated. The best way however is to consult those who already have used the services of the company.

Beware of companies that demand an advance fee, and also be discreet about your bank details. Though the interest of the payday loan is much higher than that of a credit card, the fact remains that those who bank on this kind of loan might have been refused credit cards in the first place, and the unemployed are not easily trusted with loans. If you have decided to get yourself a payday loan, be resolved that you shall avoid rolling over, and that you will manage your finances better in future.

A payday loan is cash advance offered sometimes against the next paycheck to help you tide over until the next pay day, and is a small, short term, high interest loan.

Payday Loans Vs Bank Loans: Who’s the Real Villain?

Payday loans have been getting a bad rap lately for what some argue are outrageously high interest rates and predatory lending practices, however when payday loans and their costs are stacked up against the fees of traditional banks, a different villain begins to appear.

The majority of payday lenders offer short-term personal loans that carry an average cost of between $12 and $22 per $100 borrowed. (a simple interest rate of 12% – 22%) The payback term is typically two to four weeks and the payments are automatically debited from the same consumer bank account that the funds were deposited into at the time of the loan. Opponents of payday loans argue that if the percentage rate on one of these loans is amortized over a full one year period, the annual percentage rate (APR) can reach or exceed 200%. Certainly an APR of 200% does seem outrageous, but that also begs the question of, “Why would opponents of payday loans- or anyone for that matter, attach an annual percentage rate to a loan that only covers a two to four week period?” We begin to see the self-serving purposes of the real villain when this question is answered.

Most groups that are vehemently opposed to short term personal loans and the payday lenders who offer them are made up of large banks and other traditional lenders. They claim that they oppose payday loans in the interest of protecting American consumers. In reality, if we look at a typical scenario involving these so called “protectors” a different story takes shape.

Let’s say for example that a consumer who has the average bank checking account runs short on cash and needs an extra $200 until the next payday in order to pay a couple of small bills or buy groceries for their family.

The odds of getting a loan from the bank in less than 24 hours for even a small amount are slim to none, especially if the consumer in need has anything less than perfect credit. Without the option of getting a fast payday loan, the consumer may be forced to go ahead and write checks for those bills knowing that there won’t be enough money in the bank to cover them. Overdraft fees at most banks come in at around $35 per bad check and are automatically debited from the consumers account as soon as the next deposit is made. If that deposit is made after the end of the billing month, additional late fees may be added – further increasing the amount owed to the bank!

Now let’s say the consumer had to write 3 small overdraft checks that total $100 to pay those bills, the $35 fee is a per check fee so if the consumer writes three overdraft checks that total $100, the fees the bank charges to the consumer would be $105 or $35 for each bad check written. (a simple interest rate of 105%) If we amortize that amount into an annual percentage rate – as the banks do – when they argue against payday lenders, the bank interest rate on overdrafts exceeds 1,000% annually before late fees are added.

To make matters worse in this hypothetical bank account overdraft situation, the consumer will most likely be charged between $20 – $45 by the three vendors to whom the bad checks were written, therefore the cost for NOT having access to a payday loan climbs even higher. Additionally, knowingly writing a bad check is against the law and punishable by jail time in most states. Despite what the big corporate banks and their lobbyists might wish for you to believe, when we take an objective look at the real world it starts to become very clear that payday lenders actually offer a valuable service to middle and low-income consumers who otherwise have limited options with a standard bank account.

American consumers need payday lenders. If there wasn’t a need for payday loans and it wasn’t a viable solution to an existing problem, the business would not be flourishing throughout the country. “Traditional banking institutions just don’t offer the flexibility and distribution of short-term cash loans the way payday lenders do… so it is an industry that has actually filled a void for many Americans – most of whom use the service wisely and effectively.” says William Janus, owner of three payday loan stores in Missouri.

The argument for and against payday loans promises to continue and grow throughout the coming year and at the head of the pack opposing payday loans will most likely be those villains disguised as bank presidents who view the payday loan industry as encroaching upon their gluttonous profit margins that are conveniently hidden in overdraft and late fees. All the while they charge these outrageous fees in the name of “protecting” the American consumer.

To protect yourself, make sure you are aware of any and all bank fees that you may be subjected to and if those fees are subject to being compounded or augmented by late fees and added interest. You can find payday lenders who are clear of any complaints with the Better Business Bureau or Federal Trade Commission by performing an Internet search for “best online payday loan reviews”.

People Should Only Use A Payday Loan As Their Last Resort

But sometimes there are unforeseen financial circumstances. Paydays loans are a good option to consider. Keep these tips in mind when thinking about getting a payday loan.

People should only use a payday loan as their last resort. Loans carry very high interest rates which actually have you paying close to 25 percent of the initial amount of the loan. Prior to securing a payday loan, investigate your options. A simple method to find reputable payday loan lenders to to look on websites that review them. You can get information on which companies are trustworthy and which ones have shady practices that you should avoid. If set on getting payday loans, review all information before signing a contract. There are scams that are set up to offer a subscription that you may or may not want, and take the money right out of your bank checks account without your knowledge. Do not get involved in a never ending vicious cycle. You should never get a payday loan to get the money to pay the note on another one. Do everything you can to get out of this cycle. It is very easy to fall into this trap if you don’t take steps to prevent it. The costs can spiral out of control quickly and leave you broke.

Be sure you have a clear understanding of payment due dates. Loans have high rates when it comes to their interest rates, and these companies often charge fees from late payments. It is imperative that these types of loans are paid on time. It’s even better to do so prior to the day they are due in full.Report any wrongdoings by your lender to a state agency. There are times in which payday companies act illegally that could mean that you do not have to pay the interest on your loan at all. Don’t allow yourself to be pushed around. The companies that offer payday and cash advance loans make tons of money in the business annually. They make so much money because the lender makes all profit. Before you take out a loan, spend some time researching the lender and make sure that you are receiving the lowest interest rate that you can. You should consider all fees associated with the loan. Be sure to only borrow what you need when taking out a loan. Borrowing the minimum amount of money necessary will help you minimize associated fees and interest. Avoid paying high fees by only borrowing exactly what you need. A lot of people find that they do not have another avenue when they have to get a payday loan. Look into other options first; you might be able to save money by avoiding payday debt.

If there is family or a close friend that will loan you money, talk to them before getting a payday loan. Be sure you have a clear understanding of payment due dates. Lenders typically charge extremely high interest as well as massive fees for those who pay late. Therefore, you need to be sure that you pay back your loan in full on, or before, the agreed payback date. Do not sign a payday debt that you do not understand according to your contract. If a company doesn’t give you this information, they may not be legitimate. The loan and cash advance business makes millions upon millions of dollars a year. They make so much money because the lender makes all profit. Research about each lender in order to get a good rate for your bank check.

Make sure you factor everything in, including interest as well as an other additional fees.Never refinance this type of loan if you can avoid it. The biggest problem with payday debt is that they’re addictive, in a sense, and people end up using loans to pay down loans, creating a vicious cycle of debt. Because these loans carry such high interest rates, small debts can easily turn into huge ones. If it’s not possible for you to pay off a payday loan, then you may want to apply for an inexpensive personal loan from the bank rather than pursuing a payday loan. Be careful when it comes to giving out your personal information when applying for payday loans. You will be required to give the lender personal information during the application process. Verify that the company has a legitimate privacy policy and is a reputable lender. When you are planning your payday loan needs, make the most of the advice you read here. You should be able to garner a better rate, as well as make smarter decisions. Make sure you take your time to choose the best loan for you.

Payday Loans – Second Chance Payday Loans

Mistakes are a common factor of life. Without mistakes we wouldn’t be able to improve ourselves. Many believe that great success derives from a previous mistake. Isn’t it important that you and your family receive the second chance you deserve?

Many Payday Loan providers believe that you deserve a second chance at a short-term loan. A chance to prove to yourself, and others, that you can make the right financial decisions and improve your quality of living. A chance to persevere and efficiently manage your finances from home. Second Chance Payday Loans were designed with you mind!

What is a Payday Loan?
A Payday Loan is a fiscal sum awarded to you by a respected lender between paychecks. They are typically cashed in sums ranging from $100 to $1500. Be sure to remember that Payday Loans are of a short-term nature. With that in mind, they are to be repaid upon the receipt of your next paycheck.

Unexpected expenses and emergency situations are harsh realities that thousands of hard-working adults must deal with each day. If you have bad credit or no credit a long-term loan may be out of the question. That being said, if you need short-term financial aid a Payday Loan is on your side. The fiscal sum provided to you will not only reduce financial stress now, but in the future as well.

Is it possible to get a Second Chance on a Payday Loan?
A Payday Loan is a fiscal sum awarded to you between paychecks. Remember, providers are looking to provide you with a second chance at successful financial management. With a Payday Loan you also reduce the stress and hassle of filing several documents! It’s important to remember that most companies do not take credit checks, so applying to multiple companies will not negatively affect your credit score! For a great list of no credit check payday loans, visit a payday loan review website.

Where can I apply for a loan?
You can now find hundreds of Second Chance providers online! That’s right, you don’t have to leave the convenience of your own home to take out your short-term loan. With a few clicks of the mouse, you could be filling out your online application. Said application should take no more than ten to fifteen minutes if you are prepared. Be sure to equip yourself with your Social Security Number, Driver’s License and employment background before beginning your application.

How and when do I repay my Payday Loan?
Although you are not required to post collateral, you are required to repay your loan on time. By taking out a Second Chance Payday Loan you are agreeing to repay your short-term loan upon the receipt of your next paycheck. It is important to borrow responsibly; don’t borrow more than you can afford to return on payday.

Upon completing your online application you will be presented with a number of repayment options. Be sure to carefully consider each option and make a selection that is right for you. You should look to select a quick and simple repayment option, you don’t want to get bogged down with complex details.

Don’t you deserve a second chance? Are you ready to take responsibility for your family’s financial management? Isn’t it time you make a change? Stop wasting time and do something that could change the rest of your life.

You’ve taken the first step, you have the knowledge and wisdom you need. Now it’s time you take action and put your first foot forward. Do what’s right for you and your family, make the intelligent move and obtain your Payday Loan today!

“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.”
~ Confucius

Online Payday Loan Companies: Things to Consider Before Taking Out a Payday Loan

If you’re looking for a Payday Loan Review, then it’s safe to say you’re financial trouble.

In other words… you need fast money. You need help. Perhaps you’ve got a car payment due, and you feel the only solution is to get a payday loan. Or maybe it’s your mortgage. Whatever it is, it’s no fun.

I know because I’ve been there before. Listen, I’m a single mother, so I know what it’s like having to look under rocks for money, wondering who I can ask for a loan.

But more than anything, I know that desperate feeling of having a bill or payment due, and knowing that I don’t have the money to pay it. That feeling was always my biggest fear… not having enough. Of whatever.

I also know that you have to be very careful when it comes to short-term, or payday loans.

So, what you need is to know that you’re making the right decision and using the right loan service.

Here’s the deal…

You’ve got to do your homework before going this route.

Consider the following:

Is the site you’re borrowing from reputable?

What is the minimum amount you need to get out of your current financial bind?

Do you have a clear understanding of the lender’s terms and conditions for repayment?

Have you created a plan to prevent getting into financial trouble in the future?

A few simple steps on the front end can save you a world of hassle on the back end. Yes, many can vouch for payday loans having “saved” them from unexpected financial emergencies. The key is, however, that you must be prudent when actually considering them as a solution.

Is the site you’re borrowing from reputable?

In order to obtain the loan, you’ve got to provide some very sensitive information about yourself. You need to be sure that the company you’re dealing with will treat your name, address, social security number, and bank account information with the utmost concern for security. Make sure that the lender uses encryption when your application is transmitted. The online business world is just like the brick and mortar business world. There are reputable companies, and there are shady ones, as well. At the very least, however, you want to make sure you know who is running the business. Also, do not use payday loan providers that don’t readily display their contact information, and a brief summary of the company. The most reputable payday loan providers will have a toll-free customer service number. Call the number and find out the name of the company you’re borrowing from (it may not be the same as the name of the website); and find out where their offices are located. Are they registered with the Better Business Bureau? Do a Google search for any complaints that dissatisfied customers may have posted about their experience with the lender. Keep in mind, of course, that someone having had a bad experience doesn’t guarantee the same for you… but it’s good to know what you’re dealing with from the very beginning.

What is the minimum amount you need to get out of this situation? Although it’s tempting, consider whether or not you really need to borrow the full amount the payday loan provider is offering you. Remember, you’re going to be paying an extremely high interest rate. You need to be conservative here. Make sure that whatever amount you borrow, you’ll be able to pay it back – with interest. Making a quick decision to get some quick money, can throw you into a vicious cycle that can take months to recover from.

Do you have a complete understanding of the lender’s terms and conditions for repayment?

This part is simple… you need to actually READ the fine print. Period.

Have you created a plan to prevent getting into financial trouble in the future?

Listen, I live in the real world, too. As a single mother, I know it can be hard to prevent financial problems, but you’ve got to try. There are inexpensive resources for helping people with financial planning. Consider a credit counseling service; or even something like meetup.com, where you can find groups of people with common interests. Having a support system and getting wise counsel from someone who knows more than you can help you develop skills you never knew you needed. Let’s face it – your current skill set got you into this bind in the first place, right? But that’s OK… we’ve all been there… and that’s why good help really is easy to find.

Bottom line, the goal is to have complete control over your financial situation. If you must take out a payday loan, be sure you get the facts and weigh your options before doing so. Remember that every problem presents an opportunity for growth. Get creative, and brainstorm for solutions. The fact that you need more money could be an opportunity to create new methods for managing your money, or learning how you can actually generate more. Financial emergencies happen for everyone at one point or another. Being prepared is the only way to insure you will whether your financial storm successfully.

How To Qualify For A Free Personal Payday Loan – Even If You Have Bad Credit

If you need money fast and you have bad credit, you’re about to learn one of the best ways to get approved for a personal payday loan.

You’ll also discover why applying for a payday loan online is safe and easy.

I’ll share two simple strategies you can use to pay zero interest or fees on your personal loan… and… Boost your chances of getting approved for a payday loan – even if you have bad credit or no credit.

Here’s how it works…

Until recently, if you needed a bad credit personal loan, you had to drive across town. Then – on top of that – wait in line forever to get a loan. If you have kids with you, that’s a huge hassle!

Not anymore.

Now you can apply for a payday loan from the comfort of your home, know if you’re approved in minutes, and get fast cash wired into your bank account. No waiting in line. No driving across town.

But, be forewarned —

If You’re Not Careful, This Convenience Can Cost You

Online payday lenders fall into three categories:

Honest Lenders, Offering Honest Service – These companies don’t hide behind a web site. They give you their phone number and postal address, and they clearly disclose their loan terms. When you do business with them, you can rest assured your personal information is kept safe and you’re getting an honest deal.

Dishonest Lenders, Who Sometimes Break The Law – Some online lenders charge more interest than state laws allow. Others lend money to people living in states where payday loans are outlawed – or to military personnel. And worse… Some aren’t lenders at all!… Just scam artists out to steal your hard-earned money and personal information. Fortunately, there aren’t too many scammers, but you still have to protect yourself.

And, finally,

Brokers Who Don’t Fund Payday Loans – The majority of bad credit loan sites on the Internet don’t lend money. They accept your application and forward it to lenders they’re affiliated with. While this seems like a good thing (lenders “competing” for your business), you lose of control over the application process. Do you really want to get a loan from a company you don’t research yourself? I didn’t think so.

You may wonder…

Are Online Payday Loans Worth It?

Absolutely! Applying is fast and easy, and the money is zapped right into your account.

The good news is, you can protect yourself by following these three precautions: First, only apply for a loan if the application page is secure. You can verify this if you see a closed padlock in the top-right or bottom-right corner of your screen. Second, never apply for a loan from a company that charges more than your state allows (usually no more than $25 per $100 borrowed.) And, Third, always be sure you can find a postal address, phone number and clearly-disclosed loan terms on their site within 15 seconds of landing on their homepage. If that information is too hard to find, they may be hiding something.

When you follow these three simple rules, you’ll weed out 99% of the dishonest lenders and/or scam artists.

Now that you know how to protect yourself when you get a bad credit personal loan, here’s how to get a fee-free loan.

How to Get A Fee-Free Bad Credit Payday Loan

Just as I promised, you’re now about to learn how to borrow money for free, even if you have bad credit.

Because there are so many payday loan sites and only ten spots on Google’s first page for “payday loans”, lenders are working harder to attract your business.

And that’s good news for you!

In fact, there are a handful of honest companies that will give you your first loan free.

Here’s how it usually works:

  1. You apply for a loan online
  2. If approved, your first loan (usually between $100-$500) is wired to your bank account within 1 business day
  3. When you pay-off your loan, the loan fee is waived

What that means to you is…

If you take out a loan and pay it off the first time it comes due (instead of rolling it over), you pay no fees! You can’t beat a fee-free payday loan, can you?

If you take out a loan and roll it over (extend your loan when it comes due), you’ll pay a fee to roll-over your loan. However, when you finally pay-off your loan, your last loan fee will be waived.

So, no matter what, you save money!

And, bad credit is usually not a problem. That’s because most payday loan lenders don’t check your credit report. They may check with a company called TeleTrack to see if you have any other loans out – or – if you’ve defaulted on any payday loans in the past. But, recent bankruptcy and even some severe credit problems may not always get you turned down for a loan.

Plus, since you can apply online, you can safely apply without worrying about the embarrassment of getting turned down face-to-face if you don’t meet their guidelines.

You can apply for a fee-free payday loan today and find out fast if you’re approved.

Here are two ways to find companies offering first time borrowers fee-free payday loans.

Tip #1: Search Google for “Payday Loan First Loan Free” and see what comes up. Follow the advice I gave you above to protect yourself from scams or hassles.

Tip #2: Or, search Google for “Payday Loan Reviews” and see what people say about popular online lenders, so you can make an informed decision.

Online bad credit loans are a great option, and when you follow these simple rules, you can protect yourself and save money, too!