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Monthly Archives: May 2018

Payday Loans versus Bank Loans

A bank’s loan approval process takes time – typically weeks (or even months in the current economy). So if you need cash fast, a bank loan is not for you. Bank loans work better for planned expenses than for unforeseen financial emergencies. A payday loan, on the other hand, means the loan will be approved quickly and you can have cash in your checking account in as little as 24 hours.

First of all, you should know your credit score. The bank certainly does. Your credit score will play a large role in any bank’s decision about your loan application. If you have bad credit, it may be impossible to obtain a loan through your bank. On the other hand, payday lenders don’t look at your credit score. They only verify that you have a steady, reliable source of income to determine whether or not to lend you money. If your credit isn’t great but you have a steady job, a payday loan might be right for you.

Payday loans tend to be for smaller amounts, usually a few hundred dollars up to around a thousand dollars. The amount you can borrow certainly won’t exceed the amount of your next paycheck, because this is the money that the payday lender is counting on for repayment. If you have an unexpected car repair and don’t have cash on hand to cover the mechanic’s bill, a payday loan could cover the costs until your next paycheck comes in. If you need a new car, however, you’ll have to apply for a bank loan.

If you can get approved for a bank loan, you’ll typically have years to repay the loan and have the option of making very low monthly payments. This is convenient because you know you have time to repay your debt. With a payday loan, you usually have a couple of weeks or at most a month to repay the full amount of the loan, plus the interest charged. You have to keep in mind that a large part of your next paycheck will go to pay back your loan, so be prepared to cover your normal monthly expenses and settle your debt in a tight timeframe.

Remember that a payday loan is a SHORT-TERM credit option. Payday lenders charge high interest rates for the convenience of obtaining a quick and simple loan, so these types of loans should be used for emergency expenses only. Rolling over a payday loan can be costly, so plan on repaying it in full with your next paycheck. After answering these questions, you should have a better idea of which type of loan best fits your needs. Consider all your options carefully before deciding if a bank loan or a payday loan is right for your financial situation.

No Credit Check Loan Works

These loans are something that one looks forward to when no other banks or financial institutions will give them a loan for any number of reasons. They could be previous defaulters or have missed payments on a home loan or have pending credit card bills – anything late or unpaid in terms of debt will immediately make their credit history tarnished and it will become impossible for such a person to get a loan approved.

But when we talk about such a loan that requires no prequalification, it is important that the consumer fully understands the ins and outs of this procedure before actually getting into a contract with a lender. To find the right lender who will provide such a loan is not easy. You will need to make background checks on the lender or the company who will provide the loan, and you will need to be very careful what terms are agreed.

There are so many scams going on in this regard that the borrower needs to be very careful. Just because you need money at that moment does not mean you should not be careful. If you are not careful you may land yourself into even more trouble. If you conduct a little research about the lender it may save you from a lot of mishaps and problems in the future. Even if you are sure that they lender has credibility, they might still be offering you an unfair deal.

No Faxing Cheap Payday Loan

Some Requirements

As mentioned above, a no faxing cheap payday loan does not involve any highly complicated procedure. In fact, it is easy and fast because it requires a minimum of paperwork. In order to apply for such loans, you should be a U.S citizen with at least 18 years of age. The lending company also looks for job security of the borrower. As a borrower, your monthly income should be 1000$ per month or more. In addition, the lender asks for personal details and a valid bank account. However, no guarantee or collateral is required. The company does not check your credit history either. So, you can get a loan despite having poor credit ratings. Above all, a cheap payday loan does not require borrowers to fax any document to their lenders. So, borrowers can get funds without faxing any papers. The entire system works smoothly without any fuss.

What Can You Get?

This kind of an instant financial relief is for short term requirements. Therefore, only small amounts ranging from 200$ to 500$ can be obtained for sudden and unexpected needs. These amounts are offered for shorter periods and the borrower has to pay them back on his next payday. For ensuring smooth repayment, your lender collects a post dated check covering entire loaned amount with interest and other charges. However, the company returns the check in case you make the payment in cash on your payday.

Advantages Associated with the System

As mentioned above, the system is effective and runs hassle free. As a result, a cheap loan till payday offers a host of benefits to borrowers. First, the transaction can take place online, though offline options are also available. An offline transaction is always advisable, since it is quick and easily accessible. Just fill in an online application with your essential details and your request will be processed instantly. Second, the amount is credited to your bank account electronically within two business days. Nevertheless, there are some companies claiming to credit money within thirty minutes. Exercise caution while dealing with such companies as most of them may have false claims. Third, lending companies provide credit without cross checking credit history of borrowers. Fourth, no bank or third party guarantee is required and money is lent without any collateral.

Few Important Considerations

Here are certain significant considerations that you should know before settling on for any monetary relief. These quick loans come with high rates of interest because of high risk associated with them. There are other administrative fees and charges as well making them even more expensive. These extra charges and interest normally comes around 15$ for every 100$ borrowed. Moreover, interest rates are higher as compared to conventional debts. Subsequently, it becomes important to obtain them for shorter periods, since they are not feasible for longer durations. However, keeping in mind benefits that they offer, high interest rates may look justifiable.

Payday Loan Debt Consolidation

Consolidating Payday Loans

Consolidating debts remains the only feasible option under conditions of mounting debts. Normally, a lender allows a maximum of two extensions of 30 days each if payments are not on due date. However, there are times when you as a borrower are not able to repay your debts within those two extensions. In this scenario even a small amount becomes bigger because interests and other charges keep on accumulating. The situation becomes unbearable especially if you are a middle class person. Most lenders under such circumstances assign the task of recovering money to a collection agency. Subsequently, the agency people make frequent phone calls and harass the borrower. In order to avoid such an embarrassing situation, taking help from a debt consolidation company remains the best available alternative.

Know the Consolidation Procedure

As mentioned above under conditions of acute debt, consulting an expert company is always advisable. The company consolidates as well as manages your finances efficiently. It negotiates with your creditors on your behalf and carries out settlement. It offers a feasible repayment plan and combines all your multiple loans into single one. Now, you have to make only one lower monthly payment to your company. Most of these companies offer low interest rates making the entire process quite easy. The best part is in this kind of a system you do not have to deal directly with your creditors or collection agency. As a result, there is no inconvenience or harassment.

Things to Do

Even though payday loan debt consolidation is the best solution to all exigent economic troubles, every effort must be made to avoid a situation of acute debts. If you sincerely repay all your debts on time there will never be a situation of debt trap. Make sure all your payments are on time. Never obtain unnecessary finances or more than required. Try to maintain a decent life style without too much focus on luxury. Consolidating debts is an effective solution but it must be used only as the last resort. First, make a sincere effort to avoid any grave economic situation. However, always remain prepared for the worst unexpected circumstances.