The Truth on the Payday Loan

For a while many Americans were relying on a payday loan to help them pay the bills and get through until payday. However, many of these services have become illegal because of the high interest rates and fees associated with them. Of course, online and in some states you can still apply for a payday loan. Here are some truths of the payday loan you might not be aware of.

Payday Loan Truth #1 The fees associated with the payday loan are astronomical compared to other types of credit. It might not seem like a lot of money if you are asked to pay a $15 fee for borrowing $100, which is an average fee among the payday loan services. However, after two weeks if you need to extend your loan it will cost you another $15, so now you are being charged $30 to borrow $100. If you can’t get the money together quickly you will find yourself paying more for the credit than you received in the loan.

Payday Loan Truth #2 Payday loan companies are required by law to disclose any fees associated with your payday loan, including finance charges and the APR. You must receive this information in writing from the payday loan center where you are borrowing money.

Payday Loan Truth #3 You are getting in worse debt, rather than out of debt, when you use payday loan services. The finance fees and APR are ridiculously high and you will be spending even more money you do not have to borrow a small amount of money to pay a bill. The better option is to talk to your bill collectors and find out if there is any way to extend a payment, or what the late fee might be. Frequently you will find your creditors can help you

Payday loan: A Complete overview

What is a payday loan? What are the things we should consider before opting for a payday loan cash advance?-A guide to a first time payday loan consumer.

From different surveys, it is seen that the number of customers taking payday loan as well as payday lending companies are increasing frequently. If you are a person taking the payday loan for the first time or want to gather information regarding payday loan, then this article will be of great help to you.

Definition of payday loan:-Payday loan is a very short term loan. Usually the term is 1-2 weeks. There are other names of payday loan like – “Cash Advance”, “Paycheck loan”, “Check loans”, and “Payroll advance loans”. After you get your paycheck, the loan is to be repaid. If you can not repay the loan amount plus lender’s charges for payday loan on your payday, you can rollover the loan amount by paying extra fees to the lender plus you have to pay the interest along with for the rollover period. So, payday loan can be termed a “Loan Sharking”.
Necessity of payday loan:-By the end of the month, you may face some problems in maintaining some urgent family expenses like paying off your Medical Bills, Phone Bills, and Electric Bills, House Rent or some other utility bills. These things usually happen when you fail to maintain a proper budget at the time of getting your paychecks or not keeping your expenses up to your income limit. Hence in order to meet such urgent expenses you need a payday loan.
Payday loan companies:-There are so many companies who are promoting check cashing facilities online. Besides some banks and other financial institutions also provides you with a payday loan. You can apply online for a payday loan or you can visit physically to an institution to avail a payday loan.
Conditions to be satisfied to get an instant payday loan:
The criterions of different payday loan companies are

1. You must have a job or there should be a regular source of income.

2. You should have a Checking A/c in a bank.

3. You should be an US citizen.

4. You should be at least 18 years of age.

5. Your monthly income should be at least $1000 Per Month.

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Best application time of payday loan:

If you apply for the loan from Monday to Thursday, you will get the loan on the next working day, i.e. Tuesday to Friday. If you apply for the loan on Friday, then you will get the loan on the next Monday, and if you apply on Saturday or Sunday, you will get the loan on Tuesday.

So the best time to apply for the loan is Monday to Thursday.
When will you get the money?

As the process is very simple to get the loan amount, in general you will get your loan amount within 24 hours of application. Company will check your documents and verify your data with an automated system named as VPN Based software, and then approve your loan. The entire process of verification of your identity and depositing the money to your Checking A/c takes 24 hours of time. There are some companies who will deposit the loan amount in less than 24 hours.
Costs of payday loan:-Usually a payday loan company charges 15 to 30 USD per $100 borrowed. So, if you borrow $100, you will have to pay 115 to 130 USD on the very next payday. The APR of payday loan cash advance interest boosts up to 391%.
Maximum limit of payday loan:

If you are taking a payday loan for the first time, you may get up to $500 for the first time. After you repay back your first loan amount in time, you can avail more than $500 when you revisit the company for another payday loan.
Think before taking a payday loan:

1. You should keep in mind the APR factor of the loan before taking it. You should find the company which is charging a lower APR than its competitors.

2. You should take care about the privacy of your document and information. So, if the tendency of the company is to process applicant’s information in an encrypted page, you should think that your information will not be licked out, and then you can proceed on.

3. You should read the company policy and legal matters complied with before submitting an application form to them.
Repayment of payday loan:-The lender company will take the money off from your checking A/c on the date of your payday. You should be ready and aware about your payday and the amount to be repaid. If you fail to repay the loan on the scheduled date then you may have to ask the lender to rollover your loan amount.
Alternatives to payday loan:

1. In order to avoid taking such high interest loan like payday loan cash advance, you should make an appropriate budget which is according to your income.

2. You may also save certain amount of money from your paycheck every time you get it.

3. Before taking a payday loan cash advance, you should be looking for a loan from a friend or relative as they will not take any interest for lending the money to you. Another thing is also involved here that if you not be able to repay the money in future, you may not have to run away from your creditors.

Payday Loan Lenders – 5 Warning Signs of a Payday Loan Shark

Some payday loan lenders intentionally try to deceive you. The truth behind payday loan sharks and how they use sneaky tactics to trap you into an agreement that is designed to prolong your financial nightmare instead of relieve it.

At times we all fall into a predicament where we need extra money because of an unexpected emergency. Kids get sick and cars break down at the worst possible time. Sometimes, you don’t want to ask friends or family members to borrow money because it is too embarrassing. Others may have less than perfect credit which then limits the outside options available to solve their financial crisis. What do you do? Looking at the option of obtaining a payday loan may seem simple. Some payday loan lenders oversimplify the process of getting a cash advance. And there are some lenders that flat out want to take advantage of you. Here are some signs you can look for when trying to determine if you’ve encountered a payday loan shark.1. The Lender Wants to Make the Deal Quick.Some payday loan lenders really don’t want to help you out of your situation. They do not want you to get out of debt because it’s to their benefit that you stay in your situation so you keep using their services. If the payday loan lender you’ve found is trying to “fast talk” you or they don’t allow you to take your time with your decision – beware. These lenders get worried you might change your mind if you have time to think the lender.2. The Lender is Too Vague in Answering Your Questions.You should be able to ask questions and gain a better understanding of how the loan process will work. Some lenders don’t like to answer questions or they’ll “beat around the bush” when they provide your answers. With these payday loan lenders, you may find yourself more confused than when you first arrived. 3. The Lender is Too Pushy or Too Aggressive.Entering into any loan agreement should include careful consideration. Some unscrupulous payday loan lenders will make you believe that a payday loan is the ONLY answer to your financial problems. They will also usually encourage you to borrow the highest amount they can qualify you for instead of only the amount you really need. Some practically shove the pen down your throat to sign the papers and make it final.4. They Charge a High Interest Rate and Additional Fees.The bottom line is that this is how payday loan lenders make their money. They do, however, have a choice of what fee rate to attach to the loans they provide. Some unsavory lenders will charge the maximum loan rate allowed by law. They also tend to “nickel and dime” you with application fees, deposit fees, and/or processing fees.5. The Lender is a Private Lender.Many people have been scammed into getting payday loans through private lenders. These lenders often make it appear more attractive by telling you they can do things other lenders cannot. Certain types of loans are governed by different laws, so it’s important to find out the type of loan these private lenders are actually offering and what rules apply in terms of fees, repayment, and default.There are many payday loan lenders out there that provide a valuable honest service and sincerely want to help you out of an urgent financial situation. Some lenders, howeverFind Article, are only trying to take advantage of your financial distress and they want you to stay in debt because that will enable them to make more money. Make sure you carefully research your payday loan lender options before entering into an agreement so that you make the right decision.

Alternative ways to avoid payday loan

There are so many alternatives to payday loan but we seldom consider them as we have a lack of information about them. Thus we have to find ourselves in a trap of perpetual debt. In this article the author has provided some unique alternatives to payday loan by which you can learn more about how to avoid payday loan borrowing…..

If you spend more than you earn on a regular basis, it is a bad practice. To overcome this situation, if you opt for a payday loan, it will be a “risky solution”. Payday loan companies often take the advantages of your need and lead you in debt trap.The most obvious disadvantage of payday loan is High cost. The APR of payday loan varies between 400% to 800%. Think about your investments even on a high interest stock, you can get an annual return of 20% to 30% for investment on a stock although investments on stocks are considered as “high risk”.

So, consider about all the possible alternative ways before opting for a payday loan cash advance.

•Payday loan borrowing situation arises due to bad financial planning. I suggest you to prepare a realistic budget at the beginning of each month in order to keep the balance between your earnings and spending. Avoid unnecessary purchases. Also save some money each and every month. Your savings will be counted at the time of crisis. Consider taking help from a consumer credit counseling bureau.

•Ask your creditors to give you a favor by waiting until your next payday. If you can manage them to do so, you need not to borrow the loan and thus you can save 15-30 USD by not paying the loan interest!

•Use your credit card for making urgent payments. Usually credit card loan’s interest rate is very low; even you have to pay nothing as interest if you repay the loan within a month. Again you save $15-$30 by not paying the loan interest.

•Ask your banker or a credit union for a short-term loan. The costs of these loans are such that you can easily afford.

•Ask your employer to provide you with a portion of your salary as advance so that you can cope up with your emergency bills.

•Consider in borrowing money from your friends or relatives. Actually for a time lag of 1-2 weeks nobody will prefer not to provide you the money (I strongly believe so!) unless you had a bad credit history with him or her. Thus you will meet your money requirements with no interest charges at all! Also think about the harassments if you can’t be able to repay the loan at specific date to the payday lender!!

•Consider in making arrangements with your banker regarding withdrawal facility from your checking A/c in order to protect yourself from making extra charges on bounced checks. This facility costs you as little as $5.Sometimes no fee is needed at all!

•When you shop for credit, check the APR and other official charges of different credit offers. Thus you can avoid higher monthly charges with lower credit cost.

•Many social groups and communities provide urgent assistance either directly or by various social services programmes. For example, I can mention “Federal low income home emergency assistance programme” provides financial assistance to families with lower income.

•There are several loan companies who offer $500 to $100 loan to active in duty & retired military personnel. The APR of these military loans range from 34% to 40% which is 10 to 15 times cheaper than payday loan.

•There are also several Consumer finance companies that provide small consumer loans at a low APR of 60%, which is also cheaper than payday loans.

What Is A Fast Payday Loan?

A fast payday loan will be able to help you to stretch your money further, it is basically a loan that is given on the basis you pay it back when you get paid, you can use a payday loan for whatever you wish and for emergencies some people will even give you such a loan within an hour of the application.

None of us know what the future may hold, especially when it comes to finances, the kids come home from school needing new shoes, or there is an occasion you really must be at yet you do not have the money until payday. This is where a fast payday loan will come in handy. You will not be questioned on what you need the loan for and there are many other benefits to boot!

You never know what emergencies may arise whether the cause is mother nature or technology that gives up just when you need it most. This will allow you to replace the essentials or maybe just get something that you have wanted that is on special offer for a short time only.

This is also useful if you have a bad credit rating as you may find it hard to get any kind of credit big or small as well as the fact you will have to pay high interest and some of the people who will give credit to these with bad credit ratings will not give you the amount you desire.

If you are needing money in a hurry, so to speak then this is a great way to tide you over until you get paid and will mean that you will be able to get something that may be a good offer but just won’t be there at the same price by the time your wage comes in.

You may have been concerned about taking out loans beforehand as you are concerned about keeping up with the repayments, but with a fast payday loan this is not the case, as you will be paying back the amount as soon as your next wage allowance comes in, this is taken the same day so you do not have to worry about having to budget for the monthly payment.

So that you are eligible to get such a loan al you need is your identification, proof of your place of work and income as well as the date you are due to be paid and also your method of payment, you can choose whether to have the money in way of a cheque, in your bank account or some places will even give it to your cash as long as there is a sure way they can collect it on payday.

Hopefully now you have read the benefits to a fast payday loan you will be able to get the things you need as well as never miss out again on the things you want. Once you have had one payday loan your information will be stored which will mean that in future should you require the services again that you can get in touch via e mail or phone and have the money in your bank account the same dayArticle Submission, or next working day

Getting a Small Business Loan

Small business loans fall into one of two types asset-based and factoring financing. Each loan requires different documentation and has different requirements, allowing you to choose the one that works best to keep your business going.

Asset-based loans are similar to traditional loans and require extensive documentation to show both that you are personally credit-worthy and that your business can keep up with the payment plan. Many financial institutions use the Small Business Administration’s 7(a) Loan Program to guarantee asset-based loan so there’s less risk to the lender.

If you just need short-term funding, consider a factoring loan, sometimes referred to as accounts receivable financing to cover a cash shortage. Factoring involves selling your accounts receivables to get a short-term loan. You’ll get less than the balances owed, with the specific amount dependent on your industry and the perceived risk that any of the debts will go unpaid.

Qualifying for an asset-based loan generally requires a credit score that’s in the 700 to 800 range and up, according to Forbes. You may still qualify with a score in the 650-700 range. If you’ve been in business for at least a couple of years and can show a strong history of sales as well as reliable cash flow, you’re more likely to get the loan than a startup. You’re also more likely to get a loan if you have collateral with which to secure the loan, such as equity in real estate or an investment portfolio.

The bank requires fewer qualifications for a factoring loan. As long as you’ve set up your business properly and have a history of positive cash flow, you likely qualify.

Develop a full business plan for asset-based loans. The plan explains your company’s strengths, weaknesses, opportunities and threats, also known as a SWOT analysis. Describe how your background and education help you run the business. Add financial data, including profit and loss statements for the past three years, if available. Include cash flow statements, a current balance sheet and three years of personal tax returns. Use the executive summary of your business plan to explain why you need the money and to tell your company’s unique story so the lender understands where your business is headed.

For factoring loans, you need an accounts receivables report that shows invoices for the past 90 days. Plan to complete an invoice factoring application and include business documentation that shows your company is set up with the proper government agencies, such as state and federal tax authorities.

Without a strong credit rating, your chances of getting an asset-based loan are greatly diminished. The SBA recommends providing additional documentation as part of your business plan if your credit score is weak or you have experienced bankruptcy. For instance, include bank deposits that show you make regular ongoing deposits and have positive cash flow. Another option is to find a credit partner who has a preferable credit score who is willing to co-sign for the loan.

Getting a Loan From a Bank Using Collateral

Many financial institutions lend money on the basis of collateral. Your collateral, such as a home, car or deposit account, represents a security interest; the lender knows that if you cannot repay the loan that the collateral can help recoup some or all of the difference. Traditional banks are only one of the places to obtain a collateral-backed loan, however. Your specific credit profile can direct you to the lender best suited to fill your borrowing needs.

Traditional Banks

Traditional banks like Wells Fargo offer secured loans. In addition to the option of using your home for an equity loan, traditional banks often accept vehicles as collateral. Remember that you must have the title to the car to qualify, although some banks will accept a relative’s titled vehicle provided that individual co-signs on the loan.

If you have a savings account or certificate of deposit at a bank, the bank may be able to use it for collateral. Remember two things, however, if you explore this route. First, just having a deposit account does not guarantee loan approval since you will still have to pass a credit check. Second, if you are granted a deposit-backed loan, the bank will place a “hold” on the funds. This means you will not be able to withdraw them or renegotiate the deposit rate until the loan is repaid.

Credit Unions

Credit unions offer an alternative to traditional banks. If you are already a credit union member, that institution may be able to offer you a lower rate than a bank, a major advantage. Pennsylvania State Employees Credit Union (PSECU), for example, is owned by its members, not stockholders. The nonprofit operation thus allows for lower margins on loans.

Even if you don’t belong to a credit union, you may be eligible to join. For instance, PSECU reminds potential borrowers that although the credit union started as public employees-only, now many other people are eligible to join. Keep in mind that credit union membership does not guarantee you’ll be lent money. Your collateral must be acceptable and you must pass a credit check first.

Finance Companies

The last resort for many borrowers in the consumer finance company. Finance companies traditionally charge considerably higher rates of interest to customers with weaker credit profiles. Although the finance company may ask for collateral, they may not require it; many finance companies also will accept your older model car or mobile home as collateral, items that more conservative lenders often refuse.

You will almost certainly pay a higher interest rate if you use a consumer finance unit for your loan. Although your collateral may knock off a few points of interest as compared to an unsecured loan, it is common as of 2009 to see finance company loan rates in the high teens and even mid-20-point range. This is at least six times higher than the current prime interest rate.

Bad Credit Personal Loans Banks

It is possible to get personal loans from banks when you have bad credit. In fact, there are financial institutions that specifically target customers with bad credit. Because these banks are willing to assume the financial risk of loaning money to those with bad credit, they can charge loan fees and much higher interest rates, creating the potential for greater profits. Borrowers with bad credit may lack other choices in banks when seeking personal loans until they can improve their credit.

Banks consider individuals with credit scores below 620 to have poor or bad credit. Banks find out your credit score from at least one of three privately held credit reporting agencies. Most banks offering to do business with individuals with bad credit are internet-based or local businesses that offer payday advances. Some payday advances are more like personal loans because they are renewable each payday until the borrower is able to pay in full. Of course, fees apply with each renewal.

The banks offering to loan money to those with bad credit do have some basic lending requirements that individuals must meet in order to apply. The banks require the borrower to be at least 18 years old and a legal resident with a minimum verifiable income of at least $800, although some require $1,000. Banks may require the borrower to have no outstanding payday loans or an active checking account.

Most banks seem willing to offer unsecured personal loans of up to $1,500 to individuals with bad credit. Common offers are loans of $500 without a credit check deposited into your checking account in 24 to 48 hours. Secured loan amounts are a percentage of the value of the collateral.

High risk lending banks may charge loan origination fees to applicants as well as high interest rates that may be three times the average interest rates or more. If a borrower cannot pay on the due date these banks may offer to delay payments with extension fees. The terms of the loan may include prepayment penalties; these are additional fees for paying off the balance early, so read the fine print. Lenders may also offer loan insurance for an additional fee. If you are considering this option, be sure you fully understand the costs and exclusions. If the banks fees and rates are tier-based, then a loan for $2,000 may have a significantly lower interest rate than a loan for $1,999, so be sure to ask.

Once you begin searching for personal loans you may be approached by fake lenders, phony debt counselors or scam artists who may even be using real names of loan companies. Learn about the latest advance fee loan scams and identity phishers before giving anyone your personal information such as your social security number or bank information.

Finding Credible Online Payday Loan Companies

Payday loans are a common way for people to borrow money quickly. Often all you need to do is show the payday loan company some previous pay stubs. If you pay the money back by your next payday, you should only have to pay a small fee. However, if you plan to make payments on the loan, you could pay a ridiculous amount in interest fees. Finding a credible online payday loan company is not so hard if you know where to look and what to look for.

Open your Internet program and go to your favorite search engine. Type in “online payday loan companies.”

Look through the different choices that come up. Choose a few to look at further, looking for names that might already be familiar to you.

Go to the “Terms of Agreement” page on each one of those sites. Print out all of the pages of the agreements. Mark which agreement goes with which company.

Read the terms carefully. Highlight anything that you have questions about. Take note of payments required as well as the amount of interest they will charge. Look for line items about extra charges for missing a payment or hidden fees. Reasonable fees are a sign of a reputable company.

Call the companies or chat online with a representative when you have questions. Make sure they answer your questions without going in circles. Expect clear-cut answers from reputable companies.

Look up each potential company on the websites of “Consumer Reports” and the Better Business Bureau. Also contact the Better Business Bureau’s office for your state.

Take note of how long the company has been in business. The longer it has been doing business, the more reputable the company. Stay away from new payday loan companies.

Getting Payday Loans With Bad Credit

A payday loan is a good way to get extra cash when you need it fast. In an emergency, payday loans can get you money you need quickly. If you have bad credit, there are still ways to obtain these types of loans.

Pull your credit report in advance if possible. This way, you have a better picture of where you stand and can correct any potential errors ahead of time.

Locate your car’s title. Many payday loan offices will offer customers a loan with a car title in hand, regardless of credit.

Gather together your most recent pay stubs and a utility bill, so you’re prepared when you go to get the payday loan.

Call as many local payday loan offices you can in advance, and ask them what the requirements are to get this type of loan. Choose the one with the best criteria that suits your needs.

Complete the necessary paperwork. In most cases, you should have an answer on how much cash you can borrow almost instantly.