Direct Payday lenders not matching services
Posted on June 12, 2009
Filed Under General Debt, Payday Loans | Leave a Comment
In today’s economy, we find people are now looking for ways to get money. Most people are relying on loans to support their families. But, what they aren’t noticing is that even those short payday loans are still costing them more than they need o pay for something. In the economy there are sort of two ways that you can get payday loans and they are by a direct payday lender or a matching service. Both of these are close to the same thing, but there are a couple of differences that separate the two.
One benefit of dealing with a direct lender is that you will know the person you are borrowing the money from. The direct lender funds the loan that is made, so there is no worry about where the money is actually coming from. The money that is being lent will come straight from someone’s account to another. Banks have the money to, but they are just taking the money from a huge credit line they have built up with all of the loans. Most of the time the customer is able to tell if they are dealing with a direct lender since the documents will be in the direct lender’s name.
Matching services are sort of similar to the direct lenders except they are mostly compiled based on the applicant who needs the loan. The applicant will fill out his or her information and then the service is able to connect them to a lender they think will most likely fit their needs. One benefit of the matching service is that the borrower won’t know the lender and the lender won’t know the borrower. This is good for confidential purposes and also the matching service will give the borrower better opportunities most likely. The matching service has a really good advantage, which is that it should increase the borrower’s chances of getting approved because the lender will fit the needs. Approval is a big problem that a lot of people face today and it would be nice to be assured that a borrower would get approved.
Payday loans regulation and the after effects of subprime lending
Posted on March 7, 2009
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The after effects of subprime borrowing and the wave of reaction from politicians and regulators is set to affect the payaday loan industry.
Will the payday loan industry suffer job losses with a number of states already capping the interest rates to a maximum of 36% setting the trend? Will the industry die a slow death denying an essential service to those in need of emergency cash?
It can be argued that the greater regulation and trasnparency that may be brought into the industry will bring greater credibility to the industry and help weed out questionable that lenders with questonable practices.
It will be interesting to monitor the developments in the payday loan industry. With the US now in deep recession resulting in the middle class delving into payday loans, the consequnces of any regulatory changes will have a much broader impact.
Quick Low interest payday loan
Posted on November 26, 2008
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It is most ironic that low interest appears is spoken in the same sentence as payday loans. Payday loans effective interest rates are notoriously high in order to compensate the lenders for the risk of the loan not being repaid. However it has been argued that the even after allowing for the risk of default the interest rates are straight out predatory.
To find low interest rate payday loans look for payday lenders that are upfront about the interest they charge. There are websites out there that compare payday loans.
To find quick payday loans quickly, avoid payday loan matching service as this is just another layer of process you have to deal with. Secondly, look for payday lenders that provide for instant approvals. It may be wise to go with a lender that has phone customer support as well as a stream lined website in case something goes wrong and you need to speak to someone.
Bankruptcy Payday Loans
Posted on November 16, 2008
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Bankruptcy Payday Loans
A chapter 7 bankruptcy filing will allow all debts of person to be wiped allowing the person that is burdened with massive debt a fresh start. The assets owned by the person will also be turned in to the trustee and converted to cash.
The bankruptcy is recorded in your credit history for 10 years and the longer it is since declaring bankruptcy the less likely it is to affect the chances of obtaining credit.
A very common and important question that comes is, Are payday loans discharged when declaring bankruptcy?
Alternatives to Payday Loans - Colorado and California
Posted on June 27, 2008
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I stumbled on to this service available to residents in Colorado and California.
It provides payaday loans at very competitive APR. Refer to the comparison page in the website.
Additionally it also offers short term installment loans on small sums as alternatives to payday loans.
They are offering first time customers interest free loans of up to $300.
Refer to the website for more details.
http://www.elitecashservices.com/main.php
Savings Account Payday Loans
Posted on May 30, 2008
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Payday loans are short term loans made to borrowers using the borrowers personal check or electronic access to the borrowers bank accounts as security.
The form of security in the case of savings account payday loans is thorugh accesss to the savings account from the payday lender.
This is helpful if the applicant do not own a checking account. This form of payday loan offers the same benefits as a checking account payday loan.
Multi Payment Payday Loans
Posted on March 8, 2008
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What is it?
Multi payment payday loans allow the borrower to repay the loan in multiple installments as opposed to paying it off at the next payday.
What are the advantages?
The advantages to the borrower is that lenders that offer this service will often provide this facility at lower cost than compared to the penalties that are incurred if the borrower actually require more time to repay the loan. This multi payment facility is especially advantageous if the borrower is aware at outset that they will have difficulty paying the loan in full at the repayment date. Lenders will also often pro rata the fees if the loan was paid in full earlier than the period of installment plan that was originally put in place.
Application Information fax versus faxless payday loans
Posted on February 17, 2008
Filed Under Payday Loans | 1 Comment
Regardless of whether the payday lender require fax or no fax, they must have a way verifying the persons identity, employment status, and bank account. Usually a fax of pay stubs, bank statements and drivers license is required. However fax less payday lenders will verify these information by calling the employer and asking if the applicant is working at the company but not disclosing who is calling and requesting a fax of bank statement from the bank after it is authorized by the borrower.
Alternatives to Payday Loans
Posted on January 26, 2008
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Payday loans may seem like the easy way out. There is no face to face contact, money magically appears in your account with no hassle apart from filling out a couple of forms.
Problems solved…
Until the you fall into debt trap, loan extension, penalty fees, recycle etc
Before jumping into payday loans it is worth considering the alternatives to payday loans. Have you considered the following:
Cash Advances on Credit Cards
Credit card cash advance is probably the first place to try with APR that are much more reasonable compared to payday loans. There are credit card companies out there that can help those with credit issues obtain a credit card. Don’t assume that this is a dead end.
Negotiate with creditors
Don’t be afraid to talk to your creditors to sort a reasonable plan for paying back what they are owed. The chance of paying back existing debt is not going to increase if you get yourself into a debt trap.
Credit Unions Loans
Credit unions often offers loans to its members with reasonable interest rates.
Overdraft protection
Although not a loan, signing up for overdraft facility will prevent checks bouncing from your account when not sufficient funds are in there to cover the cheque. This will prevent costly check bounce fees from incurring.
Microloans
This is something new and worth a try. This is a website platform for matching borrowers and individual lenders together. Borrowers bid for loans while lenders lend money according to the interest rates offered by the borrowers and their cause.
At end of the day, don’t be afraid to talk to your family and friends, they are going to think you are even more foolish for getting yourself into a trap that cannot not recover from than lending a few hundred dollars to you.
Payday Loans Security and Privacy
Posted on January 20, 2008
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Identity theft and fraud is a very real threat with the spread of the online business and the natural tendency of consumers to lower their guard when they reach their comfort zone. It is important that the payday lender you choose has policies for maintaining high level of security and privacy.
The information that is shared with the lender are very sensitive information that can also be used for identity theft.
Check that the lender uses Secure Socket Layer (SSL) to transfer and safeguard personal information. Some lenders even add another layer of security by using proprietary software for encrypting client information.