Do Payday Loans Deserve a Bad Rap?
We have all heard the stories about cash advance lenders charging their customers excessive interest fees. It is true that most payday loans have the highest interest rates compared to any other type of loan. As unfair as this may sound, payday loans do serve a purpose and there are many people who use them to their advantage.
The majority of people who need the assistance of a payday loan have poor credit and cannot obtain a loan by going through the traditional routes. Banks, credit unions and other lending institutions require for their customers to have a credit score of a certain level that a lot of people just simply do not have. Cash advance lenders have reasons to justify the high interest rates that they charge. Where else can you go and receive cash on the spot? Lending cash to people with questionable credit is a big risk to the lender. They have to make up for this risk and for having a large amount of cash on sight by charging higher interest rates on their loans.
Critics of the payday loan say that the short terms of the loan and the high interest fees can cause people to become trapped in a never ending cycle of payday loans. In some circumstances this case may be true. It can turn into a bad situation when people take out a cash advance loan that they know they cannot payback in addition to leaving enough money left over for other bills and living expenses with their next paycheck. In this situation, the person who is in need of a cash advance is better off to ask a friend or a relative for a loan who will not charge them interest and will be more lenient on the payback terms.
In response to the allegations that the problem with payday loans lies with the lender instead of the borrower, cash advance loans are not meant to be a permanent solution to cash flow problems. They are intended to be used only for unexpected expenses and in the case of an emergency.
If someone finds themselves on the payday loan merry-go-round, they more than likely need to step back and asses their budget. If they do not have a budget, that itself may be a large part of the problem. If someone cannot afford to pay all of their bills and necessities after cutting out all unnecessary expenses and going on a budget, they may want to seek higher paying employment or look into debt management solutions.
Even if you have good credit, there are benefits to using a payday loan. The limit on a cash advance loan tends to be much lower than the limit for a traditional loan. Many circumstances call for the borrower to only need $500 - $1,000. They can easily obtain the money through a cash advance without the hassle of an application, a credit check and waiting for approval. Many online websites such as Easy Approval Personal Loans offer both unsecured personal loans and payday loans so you can easily find the loan that best suits your needs.
In conclusion, only you can decide if a payday loan is the best option best for your situation. There are pros and cons to every situation. By being responsible with your finances and educating yourself on all of the possible loan options available to you, you will have the best chance of coming out on top.
This article was written by Beth Pardue who has over 10 years of experience in the financial industry assisting clients with assorted financial needs. To learn more about your personal loan options or to apply for a personal loan online please visit: http://www.easy-approval-personal-loans.com
What is a Tenant Loan?
Ever wondered what is a Tenant Loan? A tenant loan is another term for an unsecured personal loan. Tenant loans are aimed specifically at people who do not own any property. Tenant loans are a way for those people who rent their accommodation from the council, private landlords or live with parents to apply for a loan.
Payday Loans: How They Really Work!
Payday loan companies gives the borrower the amount of the check minus their fee (They get their money up front).
A $500 Payday Loan Can Help In an Emergency
A $500 payday loan can be a real life saver during one of life's financial emergencies. Whether it is a much needed car repair or an unexpected bill, payday loans can provided extra cash while helping you keep a good credit history. The key to payday loans is to pay them off as soon as possible.
A Method Used For Evaluating Online Lenders
Online lenders might be high quality, serious companies such as well reputable banks and credit companies as well as not so serious loan firms. Before you decide which online lender to go with, you should perform this test. The more questions answered "yes", the better the loan website.
If You Consider To Get a Quick Cash Loan Then Reconsider It
A quick cash loan also called payday loan, cash advance loan or a deferred deposit service is a small, short-term loan typically ranging from $ 100 to $ 500. These quick cash loans are issued against paychecks. In 2003, payday lenders like bank departments, credit companies or independent cash lenders serviced between 10 million and 12 million customers. A typical borrower of such cash loans pays $15 for every $100 borrowed. The loan period normally lasts for two-weeks. If you do the maths, youl'll quickly see that this accumulates up to an annual percentage rate of about 400%.
What is a Bad Credit Loan?
A Bad Credit loan is a personal loan for people with bad credit rating because a bad credit rating or credit history can make your life a misery. However created, your past record of County Court Judgements, mortgage or other loan arrears can live on to deny you access to finance that other people regard as normal.
Cash Loans: The Good, the Bad, and the Debt-Free
Happiness is what they're selling. Relief from the crushing weight of that gigantic rock we're all forced to carry called 'financial burden.' It's heavy and cumbersome, and the very thought of unloading it for a short time is so tempting, that some of us find it easy to throw caution to the wind and apply for the quick cash loans these small payday advance lenders offer.
Quick Cash Loans Online - A Fast Way to Get an Emergency Cash Advance
If you need a fast way to get an emergency cash advance, then apply for a quick cash loan online. Payday loan companies now offer instant approval with their paperless process. Once approved, your cash advance will be deposited into your checking account the next day, allowing you to pay for car repairs or any other unexpected emergency.
Are You In The Market For a Car Loan?
Car loans are a tempting way to purchase a new car. While they provide for easy access to a car, these loans can get quite expensive if you do not know enough about what you are getting into. Simple research will provide you with information that can save you some real expenses. Even if you are getting a used car loan or a car title loan, you need to understand what you are getting into.
125% Equity Home Loans
If you are a homeowner in need of a home equity loan but you have not yet built up any equity in your home, don't despair. A 125 percent equity home loan may be the answer.
Easy Cash Advance - Payday Loans Online are Quick
Cash advances have become quicker to process with online payday loan applications. In as little as a minute, you can be approved for a cash advance and have the money in your checking account the next day. Cash advances can save you from life's sudden financial emergencies.
Financial Openings Without Warranty Alias Unsecured Personal Loans
Isn't it the trillionth article on unsecured loans? All are filled with details ? extended, exhausting. It looks like that the flood gates have opened and innumerable loan providers are ready to offer you unsecured personal loans. You want unsecured loan and you still haven't found that information that makes you say ? 'Yes, this is the unsecured loan, I want.' Statistics make it more than obvious that unsecured personal loans demand has increased rapidly over the past few years. If so many have found the unsecured personal loan in this elaborate network of loan borrowing, so can you.
An Overview of Getting a Homeowner Loan
Should you be in the market for a homeowner loan, you might find yourself wondering exactly how to go about finding the loan solution that you're looking for.
Used Car Loans - 3 Tips For Financing Your Used Vehicle Online
Financing the purchase of a used vehicle can be done through the convenience of online car loan lenders. Through their websites you can request quotes, compare terms, and even apply online. Online car loan lenders save you time and money by making financing shopping easy. The following three tips will ensure that you find the best financing for your vehicle purchase.
Personal Loans for Bad Credit Can Discipline Repercussions of Negative Credit
Bad credit is like an ongoing battle for many loan borrowers. Bad credit has many repercussions for the people when they apply for personal loans. You usually are branded as a bad credit borrower if you have anywhere in your credit history terms like late payments, county court judgments, bankruptcy, foreclosures, charge offs etc. All such financial blunders are termed as bad credit while applying for personal loans. But then again there is a solution to every difficulty. In this case it is called - personal loans for bad credit.
A Brief Look At Various Types of Loans Available
A Brief Look At Loans "Innovative financial packaging" is how it is sometime known. Essentially what this means is that financial institutions look for more and more ways to lend to their customers - after all, charging interest on a debt is the main way that they make their money. But, with more and more loans now available, it can sometimes be difficult to know exactly which loan to apply for. The following explanations try to clear this issue up a little for you: Personal Loan Probably the mainstay of financial institutions is the personal loan. As the name suggests, personal loans are money borrowed from a financial institution for personal use. In nearly all cases, a personal loan is going to be unsecured, which means you'll likely be paying a premium on interest. Once the personal loan is given, you repay it by making monthly repayments to the lender. In effect, this is the multi-purpose loan. Auto Loans Auto loans are where you borrow money from a financial institution in order to buy a car or vehicle. In most cases auto loans are done by the car dealer, but there is no reason why you cannot make arrangements with your bank before buying the car to borrow the money from them. As with a personal loan, most auto loans need to be repaid by monthly installments. Sometimes, although not always, the financial institution will secure your loan with the vehicle, which means if you cannot repay the loan they'll repossess your car. One additional expense with an auto loan is that most lenders insist that you take out fully comprehensive insurance during the period that the auto loan is outstanding. Home Improvement Loans As the name suggests, home improvement loans are where you ask a lender to lend you money so you can improve your home. In most cases a home improvement loan is granted on the condition that you give the lender a second rank mortgage on your home. As such, the loan amount can rarely exceed the valuation price of your home - including the increased value after the improvements have been made. Again, home improvement loans usually need to be paid by monthly installments; however, balloon (or bullet as they're also know), one-off, payments are also sometimes accepted. Education Loans Education loans are where you borrow money to further your studies. One big difference between an education loan and any other type of loan is that most education loans, although given by a financial institution, are underwritten by the government. Consequently, the interest rate on education loans (also known as "student loans") is usually very low. Holiday Loans These days it is even possible to go to your bank and ask them to borrow money so that you can go away on holiday! As you'll be using the money to go on holiday, this type of loan is unsecured. Consequently, interest rates are high. Not really a recommended way of paying for your holiday, but nice to know it's out there if you need it! Debt Consolidation Loans Unfortunately debt consolidation loans are becoming more and more popular these days. A debt consolidation loan is where you have too much debt on store cards and credit cards and you need to borrow money to pay these all off and consolidate them into one big debt. The advantages of doing this are two-fold: (i) hopefully you'll lower the borrowing interest rate; and (ii) you only have to deal with one creditor. Having decided upon the type of loan you want, all you need to do now is to ask your financial institution to approve the loan - Good Luck!
Finding a Loan With Bad Credit
No matter what your credit history is the simple fact is that at some point in your life you will need a loan. If you have a few black marks on your credit report and you are feeling that your bad credit will not enable you to qualify for loans, do not feel despair because there are banks that will lend to people in your situation.
Poor Credit Car Loan - Get Approved Online
Poor credit doesn't have to stop you from getting a car loan. In fact, car loans are one way of rebuilding your credit history. Online car loan lenders make the application process quick and easy, so you can buy your automobile the next day.
Home Equity Loan Information - What Is A Home Equity Line Of Credit?
Did you know that if you have a home that you've been paying on for years, you may have a lot of usable money right under your nose? What's more, a home equity loan just may be the perfect way to get your hands on that money!
Bridging the Gap ? through Bridging Loans
You were on your regular walk with your wife, and you passed by this house. Then the idea struck - you want this home. A chat with the property dealer and the price was fixed. But there was a problem - a major problem to be exact.
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