Category Archives: Loans

How do Payday Loans Work?

payday loans

Payday loans are basically short term loans which can be very useful during a financial emergency. The term was coined because the loan is tied up with the borrower’s source of income. This type of loan may appear to be very convenient for some people who are strapped for cash but acquiring this kind of loan can sometimes be tricky and stressful. Therefore, it is important for borrowers to do their research first so they will not end up in a lot of debt.

Payday loans are called short term loans since the borrower has to pay the loan amount within 2 weeks or so. The loan amount is usually modest since lenders do not typically release large sums of money for this kind of loan. The borrower must first issue a check for the loan amount plus fees. If the borrower is not able to pay the loan amount on the agreed schedule, then they can ask the lender for a roll over so that the loan will be extended. This is probably one of the worst things that can happen to a borrower because the fees will keep on building up. Fortunately, some states have already limited or regulated the number of roll overs for the borrowers.

 

Are payday loans worth the risks?

Payday loans may save your life especially during desperate times; but in reality, this type of loan can be ridiculously expensive. Borrowers must pay an APR or annual percentage rate that could be a lot bigger considering that the loan period usually lasts for 2 weeks or so. Another major pitfall of a payday loan is the cost that it entails. The fees on top of the loan amount are usually high plus interest rates.

However, payday loans can still work for anyone as a short time solution. As a borrower, you just have to always keep in mind the due date of the loan and it will also help if you deal only with legitimate and trusted lenders.

Payday loans are mostly offered by private lenders but because of its popularity; banks are now offering this kind of loan provided that the borrower will be able to comply with the requirements. Loaning from a bank is a better alternative from traditional bank loans. However, the process and pitfalls of a payday loan from a bank is basically the same as from a private lender or financial institution.

Now despite issues, if you still think that getting a payday loan will solve your problems, then here are a few things that you need to carefully consider:

  1. Do your own research online or by asking referrals from your friends or colleagues. Ensure that you take the time to read about lenders and what they have to offer.
  2. Always read the fine print. Better yet, look for a lender that offers deducted fees or even minimal interest rates.
  3. Be mindful of your due date. Make sure that there is enough money on your checking account so that the payment will be processed.
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Reblog: Typical Payday Loan Process

By Chadwick Davis

WHAT CAN I EXPECT FROM THE TYPICAL ONLINE PAYDAY LOAN PROCESS?

The world of online payday loans can be an intimidating and controversial one for consumers. With all of the negative hype and confusing misconceptions circulating, consumers often don’t know whether an online payday loan is the right financial alternative for them and their situation.

The truth is that an online payday loan might just be the answer you’re looking for! At the very least, the option of a payday loan is always something worth looking into, especially if you find yourself in need of immediate financial relief.

This article is intended to clear up some of the confusion and illustrate the typical payday loan process. Obviously, different companies will have different ways of conducting business.
In no way does this article represent the full and exact process for each and every payday loan company that you find online. It is only intended as a general guide for the process and what you can expect from a typical, respectable payday loan company.

Always fully research any company you plan to do business with prior to completing any transactions.

WHERE DO I GO?

First you will need to access the payday loan website. Typically, there are two kinds of payday loan sites on the internet.

1. A Payday Loan Lead Site.

o Normally a customer will search for a payday loan site and come across a “Lead Site” thinking it is a payday loan company. “Lead sites” are hosted by companies whose main goal is to gather information from several potential customers, and then sell that information to companies that will further review it and potentially lend you the funds you are requesting. Lead sites are normally identified because they do not have a member log-in section on their homepage. Also look for a disclaimer somewhere on the website which states that their main purpose is to generate name leads for financial loan companies.

2. A Genuine Payday Loan Company Website

o You can usually recognize genuine online payday loan sites by searching for a member’s log-in area. These sites are direct lenders for customers who apply for a loan via the company’s website. These companies are responsible for processing the applications in-house and depositing the funds into customer accounts once the loan is approved.

GENERAL REQUIREMENTS:

Customers should always research any company they are planning to do business with. After identifying the company you would like to use you will likely need to fill out a loan application. Online payday loan companies will have their own general pre-designated requirements in place that must be met in order to qualify for a loan. Examples of this may include the following:

o Active Direct Deposit
o An established checking and/or savings account that allows unlimited ACH deposits and withdrawals (Established for three months or more as a general rule)
o A minimum monthly take-home pay amount (Generally around $1000)
o An established employment history of 3 months or more
o US citizenship
o Applicant age of 18 years or older

Online payday loan companies tend to be very specific and forthright about all of the requirements in the loan application. Be sure to fully read and understand all of the terms prior to signing the agreement.

After you have fully and truthfully answered all of the questions on the application a determination will be made regarding the approval or denial for the loan. Different companies rely on different systems when researching applicants. Reasons for denial may include the following:

o Active “write-offs” or a bad payment history with other payday loan companies
o Non matching information on the application (i.e. – Social security number does not match name given on application)
o Lying on an application
o Applicants, spouses of applicants, or dependants of applicants who are on current active duty with any branch of the military (Federal law prohibits these individuals from doing business with payday loan organizations)
o Excessive loan inquiries with multiple payday loan organizations
o Recent poor checking or savings account history
o Excessive amount of current payday loans still outstanding
o False reference or employment contact information

TYPICAL FEES:

Once the loan is approved, the funds will be scheduled to transfer into the customer’s account. The customer will be notified of the date in which the loan will need to be paid in full. In the event that the customer is unable to pay off the payday loan debt on the agreed upon date, “extensions” can be requested. These extensions usually have a fee associated with them. The fee and a full explanation of the extension process should be explained in the original loan agreement. The purpose of an extension is to extend the amount of time before the full loan payment is due again. Customers are generally allotted a specific number of extensions that can be used during the life of a loan. Once this number is reached no further extensions can be requested and the full loan payment amount will be due.

Another fee which may occur, and should also be explained in the original loan agreement, is what is normally referred to as an “NSF Fee”. This fee is charged when attempts to retrieve scheduled payments are made and the customer’s bank rejects the attempted withdrawal due to Non-Sufficient Funds. Typical NSF Fees are around $20.

Note: Customers living in specific states may or may not be able to utilize the extension process, depending on state laws that govern acceptable payday loan processes. Other related state laws may exist and dictate different aspects of the payday loan service. Customers should always research their specific state payday loan laws and regulations before entering into an agreement online.

THE BOTTOM LINE

Online Payday Loans don’t have to be an intimidating or confusing subject. Responsible customers often find them to be the perfect solution for a tough financial situation. The ball is often in the customer’s court when utilizing this option since all of the terms, fees, and guidelines of the payday loan process are readily available prior to accepting any agreement. The key to any successful payday loan transaction is the customer’s grasp in understanding the process and anticipating the way it will play out.

In addition, when doing business with an online payday loan company, customers should also look for an in-house Customer Service Department line. This service can act as a life-line for customers who become confused about any aspect of the process or who may have general questions.

Article Source: http://EzineArticles.com/?Typical-Payday-Loan-Process&id=1312694

5 Ways on How Not to Lose More Money with Title Loans

The moment you receive loan proceeds, the countdown to lose more money with title loans start.  With very high interest rate, that itself is the first step to lose money and if you do not know ways to avoid losing more money, then you will definitely sink further into the debt trap.  The lure of this kind of loan is very tempting as it is easy to apply and have the loan approved as you get the money in a few days or within the “same day” for those companies with such policy. There are even loan companies that claim you can have your loan approved within a few hours.  However, there are ways which you can avoid losing more money.

  1. Use a title loan calculator provided in the website. This way, you will have an idea how much money you can apply for and avoid seeking out an additional loan from another company because the money is not enough.  When you discover that the loan assessment is very low, you can always find another title loan company that can offer better loan computation and approve a loan that fits your requirement.
  2. Ensure that you will not lose your car.  One of the most unfortunate consequences if you cannot repay the loan is losing your car.  Find ways to make sure you can repay the loan such as look for a low interest car title loan or have it pawned which can allow a longer repayment period instead.  Or better yet, consider taking out a loan from credit unions or your employer and deduct loan payments from your commissions or incentives if you have any.
  3. Selling other valuable properties to repay the loan is another practical strategy to avoid losing more money.  You might have some things that are valuable to other people and just take up space in the attic, so why not convert these things into cash? Have a garage sale to find out which of these things are valuable to other people.
  4. Do not delay loan repayments. In some cases, the borrower has already allotted money for repayment but due to unforeseen circumstance that they have no control over, the borrower missed on payment and end up paying additional interests and penalty.  It is also wise to pay your loans when you have the money instead of waiting for the due date.
  5. Pay ahead of schedule, when you do so, you gain rebates or additional discounts because you pay ahead of time.  However, you need to check the terms and conditions and find out if the loan company offer this kind of benefit for borrowers.  Yet whether or not this option is offered, it is still better to pay ahead than risk losing more money by accidentally forgetting the due date.

Indeed, you do not need to lose more money when you can actually prevent it.  Title loans are helpful if you know how to avoid losing money from them.

For title loans in Memphis, TN, we suggest Quik Lend Cash.

Mistakes You Should Avoid When Taking Out a Payday Loan

Nothing can stop borrowers from taking a payday loan, not even the idea that it is expensive and one of the ways to sink deeper into debt traps.  However, this doesn’t mean that one should ignore their predicament and do not offer solutions to avoid being too dependent with payday loans or any type of instant loans.  One such solution is to inform these borrowers of the costly mistakes that they should avoid in order for this kind of loan to work for their advantage.

Here are the mistakes that borrowers should avoid:

  1. The first mistake borrowers commit when it comes to payday loans is rushing to apply for one. They did not think it over many times to analyze if they really need it, if they have ways or means to repay it, or find more convincing reasons to actually need it other than superficial reasons.
  2. The second mistake borrowers commonly make is that they do not investigate well and just accept the fact that it offers quick and easy loans. Borrowers do not find time to see if they are borrowing from a legitimate loan company; one that will not dupe borrowers with their money.  Borrowers do not find time to roam around the website of these companies and find more important details like if the company offers reasonable interest rates or if the loan application form details are complete.
  3. The third mistake borrowers often do is that they do not know their financial limits.  Because payday loans have easy approval mechanism and are not rigid, borrowers go for the kill and borrow more than what they can afford to pay. As a result, they end up paying more interests and surcharges and eventually ruining their credit history further.
  4. The fourth mistake is quite a surprise to many because most borrowers will treat this as just being forgetful.  This mistake is all about lack of information on hand when needed. It is important that you have all relevant details beside you when filling up loan application forms. Yes, it takes hours or even minutes to have payday loans approved but when you do not have your ID numbers or employer information at your fingertips, your loan approval will surely be delayed.
  5. The fifth mistake borrowers are guilty of is due to their excitement to receive loan proceeds, they forgot to double check important loan application data.  For example, some of them did not realize that the interest rates stated in the form are different from what is advertised in the website or that the terms and conditions reflected in form is totally different from what you agreed with.

You might think that some of these mistakes are trivial like failing to provide relevant information or by failing to double check payday loan application entries but it can still affect your payday loan application and these mistakes can be costly; you will end up paying something which you did not expected like higher interest rates or conditions not mentioned early on.

Apply for a payday loan Lansing, MI and the rest of the Michigan, Virginia, South Carolina, Tennessee, Alabama, Mississippi, Louisiana, and Oklahoma at ApprovedCashAdvance.com.

What Not to Do with Regards to Auto Title Loans

Critics of auto title loans argue that this kind of loan is predatory.  It attacks on the weakness of borrowers, which is lack of money at the moment, and there are emergencies to pay and overdue bills to take care of.  The promise of convenience made some borrowers blinded with the negative side of this type of loan such as the repayment period is quite too short (at 30 days on the average), making it sometimes impossible for borrowers to pay it on time.  In fact, studies have shown that on the average, the loan is rolled over many times before it is repaid in full or the car is repossessed. Given these situations, it is important that borrowers should be aware of what not to do when taking out this kind of loan.

Do not borrow this kind of loan if the car is very important

Just think of the inconvenience you cause your family and of course the hassle that it will impact with regards to your professional life.  Do not compromise your personal and professional life just because you need extra money to solve short term problems.  How do you think your children will react if you can no longer fetch and drive them to school?  How do you think can you juggle your time riding a public transport system and meeting quite a number of clients during the day? Scary, isn’t it?

Avoid seeing a financial counselor

When you have already taken out a loan and see that you indeed cannot repay the loan on time, it is wise to see a financial adviser and help you deal with this problem.  He or she can negotiate loan moratorium and at the same time give you pointers on how to avoid this expensive loan in the future.

Not taking it seriously

Financial counselors are in the same wavelength telling everyone that borrowers are easily lured and trap with the idea of getting that extra cash from this kind of loan and did not fully analyze if they really needed it then.  Very often, their lack of understanding towards different methods on how to deal with overdue accounts and dated loans is one of the reasons why they succumb to instant loans instantly.  Again, financial counselors can help you negotiate with your creditors as they will remind your lenders of your rights as borrowers when you tend to struggle with your payments.

Not dealing with it face to face

When you are convinced that it will take time for you to repay the loan, be man enough to admit it and inform your creditors.  You will never know their reactions if you will not tell them so.  By telling them, you might be in for a surprise and they might offer you suspension of interests or give you more time to settle it without repossession.

Clearly, auto title loans are obligations that you have to deal with personally.  It is not something that you can ignore and let time run its course and wait for solutions to pop instantly and the loans will vanish.

For auto title loans online and in San Diego, CA, see USA Checks Cashed. Other services include payday loans, check cashing, and more.

A Car Title Loan is Not All About Losing Your Car

Issues and concerns about car title loan focus on the repossession aspect of the loan.  Borrowers and other people are aware that in case they cannot pay the loan on time and they have already exhausted their roll over privileges, the lending company will repossess the car as payment for the loan.  However, there are other interesting ideas about this kind of loan which other people are not aware of and might be a consideration when formulating state policies to govern car title loan and other similar forms of credits.

Poor Borrowers Are Good Payer

It has already been established in many academic studies that poor and regular borrowers tend to resolve their obligations as opposed to rich people.  This can be attributed to the fact that small borrowers have something bigger to lose when they cannot fulfil their loan obligations; they will find that no creditors will lend them money at the end of the day.  Rich people have assets to leverage and in fact some of their loans are pure accommodations by bank in order to show their CEOs that the bank is performing and loaded with rich clients.

Poor Borrowers Are Very Optimistic

The reason why millions of borrowers are not afraid of short term periods and high interest rates is because they are positive that they can repay any kind of loan that they will avail.  Thus, they are also not afraid to take out several loans from different loan companies.  In some studies, only a small percentage of borrowers were not able to repay the loan and almost 80 percent of instant loan borrowers fulfil their obligations.

Instant Loan Companies Are Not Particular with the Way Loans Are Allocated

Car title loan companies accept almost all kinds of reason when they decide to approve for a loan.  In addition, these companies do not monitor if borrowers really spend the loan proceeds on the reason stated.  Thus, the loan is prone to abuse and misuse and as a result, borrowers end up accumulating loans and credits and find themselves having difficulties meeting the obligations.  With this, it is important that car title loans companies will revise their policies on reasons for accommodating the loan in order to help borrowers avoid getting into debt traps.

Only a Small Percentage of Cars Were Repossessed

This could be due to the fact that poor and middle class borrowers have more to lose than rich people; hence, they are really moving heaven and earth to pay the loan.  Thus, it is not right to accuse car or auto title loans companies that they are exploitative.  Policy makers should look into this aspect if they want to help millions of borrowers get a better bargain when it comes to this kind of loan.

Based on the above ideas, you can conclude that a car title loan is not really that bad.  Some people just focus on one aspect of the loan and ignore other positive aspects like borrowers meeting their loan obligations and only a small percentage of cars were actually repossessed.

For car title loan Clinton, MI and throughout Michigan, Virginia, South Carolina, Tennessee, Alabama, Mississippi, Louisiana, and Oklahoma, see Approved Cash Advance.

5 Types of Borrowers Who Need Payday Loans

A lot of people have wrong notions that only those who have bad credit score, do not have bank accounts, and rejected by banks and other lending institutions are qualified to apply for payday loans.  This is all wrong as there are other types of borrowers who also need the services of payday loan companies.  Let us enumerate some of such people.

  1. Those who are embarrassed to borrow from their friends.  These borrowers believe that one of the ways to kill a friendship is to borrow money from friends.  Even though they will pay it, they do not want to create the impression of abusing friends. Indeed, you will never know what your friends will say after giving you the money.  Thus, to avoid bitter stories, many borrowers prefer borrowing from instant loan companies.
  2. Those who are not fond of borrowing from family members and relatives.  Yes, there are people who are indeed secretive and do not want news to spread around the family and relatives that he or she is experiencing monetary problems.  Thus, when borrowers want to borrow from payday loan companies, it’s their way of preserving dignity.  And sometimes, relatives are quite nasty; they create gossip as to why you want to borrow money from them and spread it amongst other relatives.
  3. Those who do not want to use company privilege yet and reserve it for more pressing matters.  Although this is quite odd, some prefer paying more expensive loans than availing interest free loans from employers.  However, there is logic after all as you cannot tell when more pressing matters occur.  It cannot be helped that employees will think that borrowing or securing a loan from employers can also bring about a negative impression and employers might conduct a lifestyle check on the employee in order to have answers as to why employees are borrowing money; and this is a violation of employee rights and privacy.
  4. Those who are not really comfortable borrowing from their banks.  Again, they might reserve the privilege for more important financial situations to come in the future.  And borrowers do not want to taint their record with their own bank by taking out a loan and failing to pay unwittingly.  There are really people who find bank employees arrogant and quite a snob and they do not want to feel like being ignored or left out when they are not entertained well by bank employees.
  5. Those who do not have time to fill up loan application and submit to rigid interviews and answer embarrassing questions.  In addition, they do not have the time to gather documents to present as evidence that they can actually repay the loan.  Payday loan companies are the most convenient source to have money even if it is not for emergency purposes.  Some people just do not want to share too many personal information.

There you have it, here are different kinds of people who need payday loans.  As you can see, these people do not necessarily have negative credit score and really need money but rather, they are just protecting their integrities and payday loan companies help them achieve this desire.

For payday loans Montgomery, AL and throughout Michigan, Virginia, South Carolina, Tennessee, Alabama, Mississippi, Louisiana, and Oklahoma, contact Approved Cash Advance.