The cost of living is soaring up these days and many are struggling to meet their expenses with monthly salary. If any unusual expenses come on their way in a month, people are forced to look for options they have not considered before, such as payday loans.
Clients who rely on payday loans on a regular basis say that they could not have survived without these mini-loans.
What Is A Payday Loan?
Pay day loan is a short term loan taken by an employed person to cover sudden expenses incurred in a month, like payment of telephone bill. These loans should be paid back on your next payday or within two weeks. The procedures for getting payday loans are easy to comply and the loans can be acquired in a very short time. Most payday lenders lend money on the security of a postdated check. The interest on payday loans is usually higher than other loans. There is no need to worry on the interest rates of such loans because there are laws to check the annual percentage rate (APR) of interest on loans.
How Easy Is It To Get A Payday Loan?
The processes involved in acquiring a payday loan are not very complicated. The criteria for approving loans vary for each lender. Most payday lenders do not check for the credit of the borrower for approving the loans. The first thing you need is a steady income. A Steady income from the employer is a criterion which every borrower must meet. The amount of loan which you can get depends directly on your monthly income. Most payday lenders will give you a loan ranging from $80 to $750. It is not easy to get the maximum amount at your first borrowing.
Before lending the money, one has to write a check for the amount you borrowed plus the interest on that sum. This should be a postdated check, usually dated for the day of your payment. The money will be debited on the dated day from the bank by the lender.
If the borrower is not able to pay the amount on the due date, the loan rolls over and additional fee and interest will be incurred on the loan. This has to be avoided as the interest rates on these loans tend to soar up faster than other loans.
How to find the best Online Payday Lender?
The number of payday loan lenders is increasing after each day. It is necessary to make a research on different payday lenders before taking loans from them. The three main features to look for in a payday loan lender are simplicity in processing, Approval rate, and loan terms and fees.
The simplicity in processing includes thing like, the number of documents needed, turnaround time, length of application etc. Requirement of complex procedures means that more time will be taken to acquire the loan. Make sure to find a lender with higher approval rate. Make sure to go through all the terms and procedures before committing with any lender. Taking a little time to research on the lender will surely save you some money.
Cash lenders provide funds to individuals who need them right on the spot. Rather than provide a line of credit or secure a loan to purchase a car or home, these lenders hand you cash. The funds are usable as you need them. You can pay a bill with them or pay for a vacation – there is no restriction on how you spend the money. There are many advantages to working with these organizations to pay your bills. The costs, availability and funding options for these loans do differ from one lender to the next, but most of these companies suffer under misconceptions. You should know about cash lenders a few things.
They Are Affordable
One of the biggest misconceptions about cash lenders is that these loans are simply too expensive. If you held onto the loan long term, it will be expensive. However, because you are borrowing money for the short term and paying it back within just a few weeks, that is not the case. Before you overlook the benefits of working with these companies because of costs, ask for a quote on a loan for you. You may be shocked at the affordability.
They Are Hard to Get
Cash lenders want to work with you. You do not have to have a high credit score to obtain these loans – most lenders do not even require them. However, you will need to have income to prove that you can pay back the funds. You will only be able to borrow as much as the lender feels you will be able to repay with your next paycheck, too. These loans are actually easier to obtain than you may realize.
This Could Lead to a Trap
It is possible that you could make the mistake of being in a trap where you have to keep taking out new loans to pay existing ones the simplest way to avoid this is to only borrow the amount of money you need and can afford to pay back on your check payday. The bottom line here is that you should use cash lenders when you need to do so and to pay them back as you promise to do so.
If you are like many people, you just need to borrow some money from the paycheck you have coming in a few weeks. However, in situations where you need money in hand right away, one of the best places to get it is through an online cash lender. Cash lenders want to help you to pay your bills and to get back on track. They are not trying to trick you.
If you need some emergency cash but you’re afraid of going to cash lenders, this article might help. A lot of people are afraid that going to a cash advance company is going to end up hurting them in some way. By and large these fears are unfounded.
Here are a few of the most common fears regarding cash lenders, along with an explanation of whether or not they’re true.
“Getting a Cash Advance Will Ruin My Credit”
In reality, the opposite is true. Getting a cash advance is one of the few loans that have an absolute zero impact on your credit rating.
If you work with cash lenders that don’t check your credit report, you won’t get penalized for the report check. Furthermore, almost no cash advance company reports loans to credit agencies. That means your credit report won’t even show that you got a cash advance.
The only time a cash advance will show up on your credit report is if you default. As long as you pay back the money, there will be zero impact on your credit score.
“Cash Advances Cost a Lot of Money”
They cost more money than credit cards, true. However, the key is to weigh the cost of the cash advance against the cost of not having the cash advance.
Cash lenders generally charge about $15 for every $100 that they lend you. If not having the money will cost you even more money, then getting an advance is a great deal.
For example, if you’re having trouble covering your rent and you’re getting charged a $10 a day late fee, you’re much better off with the cash advance than without.
Yes, advances cost money, but if you need the quick cash, it’s often worth the price.
“I’m Worried About Getting Harassing Phone Calls”
It’s true that if you’re late or delinquent on your payments, your lender can call you or have a debt collection agency call you.
However, getting around this is rather simple. If you send them a physical letter asking them to stop contacting you and you send the letter by trackable mail, they’re legally required to stop contacting you. If they don’t, you’re entitled to a fine.
If you do pay back the loan on time, there’s no worry about harassing phone calls at all.
In other words, even if you do get harassed, you can stop them from ever calling you again within about a week.
These are a few of the most common fears that come up when people think of getting a cash advance. Going to cash lenders really isn’t as scary as people think. Most of the time, the process goes smoothly without a hitch.
Have you heard of payday loan lenders who’ll guarantee approval? If you’re looking at payday loan sites, you’ve probably seen advertisements from these lenders.
Are they for real or is it just a marketing ploy? How can anyone possibly guarantee approval for a loan from someone they haven’t even vetted yet?
Here’s all the information you need to know about guaranteed payday loan lenders.
How the Guarantee Works
The guarantee always comes with conditions. For example, you’re guaranteed a payday loan if you match the criteria of having a job that pays at least $1,000 a month, you live in the United States and you have a checking account.
The company that’s making this guarantee knows that they’re able to successfully lend to people who match this description. As a result, they’re able to let customers know upfront that they’ll get a loan approval if they fall into this category.
Working with guaranteed payday loan lenders can take a lot of stress off your shoulders. Instead of having to wonder whether or not you’ll get approved for the money you need, you can send in your application with full knowledge that you’ll get the money you asked for.
The One Thing Guaranteed Payday Loan Lenders Don’t Promise
There is however one thing that these payday loan lenders don’t promise: They don’t promise to give you the amount you’re looking for.
Let’s say you earn $1,000 a month and want to get a payday loan for $1,500. Even though the lender you’re applying to has a guaranteed approval process, they might only approve a $500 loan for you.
In other words, these lenders will guarantee a 100% approval rate if you fit their criteria; however if they think the amount you’re asking for is too risky, they’ll only approve your loan for a certain amount.
In reality however, this is probably a good thing. Even payday lenders who don’t guarantee approvals will do this. Lenders are very skittish about lending out more money than they think borrowers can pay back.
Guaranteed lenders will do basically the same thing that other lenders would do anyway, but you’re guaranteed to at least get some of the money you’re asking for. Plus, if you’re not asking for an amount that’s far outside your earning zone, you’re very likely to get the entire amount.
In summary, guaranteed lenders are absolutely for real and will make real guarantees on their approvals. They might not give you all the money you ask for; but if you fit their requirements you’ll definitely be approved for a loan.
Payday lenders have quite a bad reputation for charging extremely high fees. But are these fees really as high as mainstream media would have you believe?
The reason payday loans appear expensive at first is because people try to compare payday loans with the same measurements as credit cards or traditional loans. When you look at it from a traditional lens, payday loans do indeed seem expensive.
However, payday loans are really a completely different animal from a credit card or personal loan. Here’s why.
The Payback Rate is Much Lower
In the traditional loan world, default rates are very, very low. In the single digits. In the payday loan world, the percentage is over 10%.
Remember that payday lenders need to make sure they’re profitable in the long run in order for them to support themselves, their employees and their customers.
In order for them to be able to continue to run a business, the profits from the customers that do pay back their loans need to cover the losses from customers who didn’t pay back the loan.
This is perhaps one of the largest “hidden” costs of payday loans. It’s not that they’re trying to charge exorbitant amounts of money to exploit customers. It’s just that their costs are a lot higher than a traditional loan, because they have to cover a lot more defaults.
Why Payday Loans Can’t Be Measured in APR
When mainstream media tries to point out how much payday loans are charging they typically try to point to an APR number.
For example, let’s say a payday lender is charging you 15%. If you borrow $100, you pay back $115.
If you looked at this from an APR point of view, you’re paying over 300% interest. That’s because APR statistics compound every month. In other words, month 1 you’re paying 15% interest on $100, but month 2 you’re paying 15% interest on $115, so on and so forth.
By the time you get to month 12, you’re paying interest on $535 a month from your initial $100 loan. No wonder the APR statistics look so high.
The reality is simply that payday loans are completely different than credit cards and loans. Nobody takes out a payday loan for a year. They’re meant to help you cover emergencies in a matter of days or weeks.
Competition Drives Prices Down
One final thing to remember is that payday loan prices are always being pushed down thanks to competition, especially with the internet.
If one lender is making 20%, another lender will be happy to take their customers by charging 15%. Another lender will come along who’s willing to take 13%. So on and so forth.
The prices of payday loan lenders really aren’t high when you look at the default rates they need to cover. Without measuring them against unfair metrics like APR, payday lenders are actually quite reasonably priced, especially in a highly competitive world like the internet.
Are you trapped in an emergency financial situation which needs immediate attention? In this case you can consider applying for online payday cash advance loans to solve your urgent cash needs. These loans are also called as no fax or fast payday loans which can be easily applied for online. There are some emergency needs such as paying medical bills or repairing your car which cannot be left unattended until your payday. In this case availing small amount of cash can be helpful which is possible through online payday cash advance loans.
However when you browse online for fast cash advance, make sure you choose secure sites as you would be providing your financial and personal information. Most of the online loan providers would normally not check your credit status and offer you cash advance even if you have bad credit. You just need to be employed with a reputable company and have a current bank account. When you meet these requirements your online payday cash advance loan can be instantly approved.
Cash lenders provide individuals with the ability to borrow money quickly and without having to invest a lot of money into the borrowing. You can use these funds for a variety of things including emergencies and for paying unexpected bills. But, before you actually start using any of these payday lenders, there are a few things that you should know about them.
- Learn the reputation of the cash lenders you are considering. You can do a quick search online for reviews of the company itself and you can check the Better Business Bureau to ensure the company is on the up and up.
- Find out how the lender works. Many of them provide services just online while others provide services throughout the country. The key is to know as much as you can about the lender before working with them.
- Visit the company’s website and read the terms of service. Although it may be easy for you to actually just sign and go, you should take the time to read the terms to learn what the actual costs are and how the process works.
- Learn how the lender will pay you and how you will need to pay them. You can gather this information from the website or from the contract that they provide to you.
- Determine the timeline of when payments will need to be paid to the lender.
Most of this information is easily available to you form the payday lenders. If they do not provide you with this information, it is very important to learn it before you actually sign for the loan. It can also be helpful to compare several of the loans options available to you before you actually sign up for the loan. This allows you to get the best possible loan available.