Tag Archives: cash
Payday Loans How To Choose A Lender (Page 1 of 2)
Most of us have experienced a minor crisis which called for immediate cash. If you have been in this position you may have considered taking out a payday loan, also known as a cash advance or paycheck loan. It’s a well known fact that these loans feature steep finance charges, obligating the borrower to repay the debt at an annualized interest rate of over 900%. Because of the high cost of this form of borrowing, payday loans should only be used as a last resort. Using them frequently can trap a person in a dangerous cycle of debt.
If you decide on a cash advance loan you have a number of options. To the dismay of many lawmakers, this form of lending has proliferated throughout the US and Canada, and those who don’t have local access to a lender can easily find one online. In fact, your online payday loan options are so abundant that you may have some difficulty in settling upon a lender. The following are some unique features of payday loans, and a few guidelines to follow when getting one.
Exactly how high are the finance charges? A typical $250 payday loan carries finance charges from about $40 to $75, which translates into an APR of 400% to 800%. Not much of a bargain, but you can find significant differences from lender to lender.
One criteria you can use to compare payday loan companies is the maximum amount they will lend. The minimum amount is normally around $200, with the upper limit being somewhere around $2000. The precise amount will be determined by several factors including your income and work history. In many cases you will be able to increase the maximum amount for which you are eligible by building a history with the lender. Take care not to borrow more than you can afford to repay on the specified date, or you will incur even more finance charges.
How quickly will you receive your money? If you get the cash advance in person at a local establishment, you will have the cash as soon as you are approved. Online lenders take slightly longer, with the next business day being the norm. Some companies offer money wired into your account on the same business day provided you receive approval before a certain time, for instance 2:00 pm. You will probably pay more in fees for same-day service.
The minimum monthly income requirement for a payday loan can be as low as $800, not a big issue for most full time workers. Most lenders will not run a credit check; however, many of them use some type of tracking service that verifies identity and other information given by the loan applicant.
What if you are self employed or living on a fixed income like a pension or social security? Not all lenders will extend credit for this type of income, but you can find one with some persistence. In the event that you receive some non-traditional form of income that you want considered, the lender will verify the income by looking at your bank statements.
Do you happen to have access to a fax machine? With many payday loan companies, you won’t need it. “No Fax” lenders are the norm these days. While some lenders may require you to fax proof of income, most of the time everything can be verified online, saving valuable time in getting your money which can be deposited directly into your checking or savings account.
Payday loans: Lets tie a knot with financial woes
Due to shortage of finances, you may find unexpected cash expenses tough to handle especially when they cope up in-between the month and you have left with no cash in your pocket. Well, do not get tensed at all. The financial lenders in competitive market have brought effective financial solution for you named payday loans. These loans help you to gain quick cash assistance without any hassles. In comparison with other regular loans, these loans do not require lengthy paper work or other formalities. This in turn makes the approval faster and processing effortless. During your temporary fiscal woes, these loans act as a good financial option in your emergency situations.
The payday loans belong to the category of small and short term loans. These loans are considered as the best option to avail at the time of exigency. Like personal loans, the borrowers have to comply with some mandatory terms and conditions to opt for instant cash advances. The loan seeker must be 18 years of age or more, with a valid bank account in the UK, employed in authorized company as a regular employer and earning at least £1000 per month. Adding to this, payday loans are only viable for the country folks not the outsiders. So, Britons who are looking forward for meeting their emergencies can opt for it.
With the help of these loans, borrowers can seek financial assistance anywhere in between £100 to £1500. The amount is approved for a short time as it is depended upon the borrowers next salary. The interest rate charged is slightly higher due to unsecured nature and no credit check. A proper and extensive searching helps the borrower to grab inexpensive loan deal.
The borrowers who are burdened with adverse credit score like CCJs, IVAs, arrears, defaults, missed payments, etc are also eligible for payday cash advances. With proper and timely payment, the borrowers can even improve their credit ratings.
The amount availed can be used to handle various petty issues like electricity bills, medical bills, car or home repair, credit card bills, education fee, grocery bills, unexpected tour expenses and so on.