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
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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.
Payday Loans Direct lenders vs Matching service
Posted on January 17, 2008
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It is important to distinguish between financial institutions which actually approve and lend monies versus matching services provided by a company. Matching services collect the necessary financial details and catch the applicant with lenders. Matching services are just that and they do not make the decision on the approvals or do not make any guarantees on service levels.
Matching service provider websites usually have a disclosure clause at the bottom of the webpage indicating it is a matching service.
Some disadvantages of this service include not knowing which lender your details will be forwarded to, in effect they are lead generators, these information are on sold to direct lenders.
Also the application forms tend to automatically sign up applicant to email and sms lists. This should be noted and look for the option to opt out. Some websites seem to sign up the applicant to mailing lists once they submit the form without giving applicant a chance to opt out.
However matching services in theory should have some advantages in that it should increase the chance of approval as the borrower will be matched to the lender.
Features to consider before deciding on payday loans
Posted on January 13, 2008
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Cost of Borrowing
The single most important feature of any product and loans being no exception is the cost associated with it. Typically the cost of payday loans are measured through the Annual Percentage Rate (APR%) which annualizes the interest cost associated with the short term borrowing.
The average cost of 14 day term payday loans ranges between 400%–800% with shorter term loans having higher APR. Although APR measure is a useful measure for comparison purposes it is also important to note the dollar costs associated with the loan.
In comparison other forms of cash advances like credit card cash advances incur an APR cost of approximately 60%.
Loan Features
How fast does the loan get approved? Some with urgent needs will be interested in the speed at which the payday loan is approved.
Is the lender flexible with the loan amounts?
Customer Service and Ease of Navigation
What are the customer service like, are emails and phone queries answer promptly?
Is the website user friendly?
Application Process
Is the application process straight forward or is it onerous?
Is it truly fax free and hence does not require bank statements, phone bills etc to be faxed?