This is default featured slide 1 title
This is default featured slide 2 title
This is default featured slide 3 title
This is default featured slide 4 title
This is default featured slide 5 title
 

Monthly Archives: June 2018

When Applying for Payday Loan

Paying back

If you don’t have enough funds in your account to pay back the loan, you may try other options. For instance, you may renew the loan amount or consider taking out another payday loan. But keep in mind that this new loan will have its own financial charges and extra fees. And the extra fees are actually incur because of late payment of the amount of loan.

State Regulations

In each state, regulations are different for payday loans. Usually, the term limit is not more than 30 days. The problem is that lenders often issue loans that feature a longer term limit. In this case, you are at the lender’s mercy, which is a situation you may not be willing to go through.

Cash crunches

As said earlier, the purpose of a payday loan is to deal with a temporary financial crisis, and we have to pay back the loan as soon as we are out of the financial trouble to avoid high interest and fees.

So, it is not a good idea to be tempted by the “roll over” trend or you may have to pay a huge sum at the end.

Financial position

Usually, these loans are for borrowers with lower incomes as they can’t afford to borrow from other sources. Here, it is important to keep in mind that lenders don’t usually take into account the financial position of those who are applying for the loan. So, you have to think harder before opting for this option.

Automatic rollover

You need to be aware that there are some loan sites that tend to rollover the loan amount automatically. And then there are sites that have some contractual agreements that state that you, the borrower, do not have any right to file for bankruptcy or file a lawsuit against the lender.

Approval

A great characteristic of payday loans is that they are easy to get, meaning the approval process is quite easier than other types of loans. So, most borrowers find them quite tempting, but you should be careful and only opt for this option if you have no other choice left.

Instant Approval Payday Loan

As an immigrant to the United States with no family support or long term friends to turn to for such an intimate issue as finances, it was, to put it mildly, a gut-wrenching moment that needed urgent attention.

Add to the mix the fact that I did not have any credit at all, not even bad credit, and you’ll understand the predicament I found myself in.

Sleeping in a fetal position whilst sucking on my thumb was not an option. I had a wife and new baby relying on me.

There’s a saying out there that, if you think your bank does not care about you, try missing a couple of payments, and you’ll see how really concerned they are about you!

Sadly, that concern does not transcend into help of any sorts, but more like an urgent nudge to produce some cash or else.

What I’ve never really been able to understand is, Banks charge you more for having insufficient funds in your account or for having no money to pay your bills as if you’ve just hit the jackpot!

I digress.

If you’re unfortunate enough to find yourself in a similar situation as I once was, take heart, perhaps this article will assist you avoid all the minefields of searching for credible instant approval payday loan companies that will empathize, listen and work with you until you’re out of your predicament.

You see, when you have no credit or have bad credit, financial institutions do not want to have anything to do with you, you’re as good as dead in their eyes, so there’s no love lost there.

However, you have the option of seeking out alternative sources of finances, or the parallel market, as it’s called, and this is where Instant approval payday loan companies come in.

In a nutshell, Instant approval payday loan companies advance you some cash, usually up to between 1000 – 1500, on the understanding that you’ll repay all of the money, or a fraction of it based on your terms and conditions, by your next pay date.

In most cases, the Instant approval payday loan company will not even check your credit history. All they require is that you’re gainfully employed, that you earn between $800 – $1000 per month, and that you have a checking account.

Advance Your Payday

We do not want to choose the wrong one because we want to save the most money we can. This is why it is incredibly important to understand what the options are and use that knowledge to our benefit.

The problem is that some of the options are less publicized or even downplayed so we do not consider them. Payday loans are one of those options that are commonly misrepresented.

Because of this, it is necessary to understand what they are and contrast their cost with other options to see which would save the most money. In your financially difficult dilemma you are $100 short on cash and you have to pay your rent at the end of the week.

The problem is that your paycheck will not arrive until the following Thursday. You have to pay off this debt but you simply do not have enough money to do so.

You decide that you will simply not pay off your rent and hope your landlord will accept a late check. The problem here is you will be charged a late fee on your rent as soon as it is late.

This fee is usually a percentage of how much rent you pay so you end up paying a significant amount of money. Realizing this you decide you want to avoid going this route and look to other options.

Another thing people often choose to do is write out a check for money they do not have. This means that you would simply hand your landlord a check for the amount in full even though in your bank account you are $100 short.

This is done in the hope that the check will not be deposited until after you receive your paycheck and are able to take it in. This is a tricky decision because banks charge an overdraft fee on every check that bounces.

When your landlord takes the check in to deposit it, it will bounce, and you will be left with the fee. These fees range from $25 on the low end up to at least $50.

Considering you are just $100 short, this translates to a costly fee. Payday loans came into existence because of these costly situations.

These loans are short term loans that offer you the freedom you need to pay off that rent and then pay off the loan in a timely manner. This prevents you from remaining in a constant state of debt and allows you immediate money saving measures.

On a $100 payday loan the fee would be about a little over $1 a day. This means that after two weeks, when you pay the loan back, you will owe $115.

This clearly saves them the most money so is a great option for this situation. Despite its seemingly great appeal, many other financial institutions are scared of what effect payday loans have on their profits.

About Regulatory Laws For Pay Day Loans

Loans and all financial transactions do come under the purview of the law makers. Hence Pay day loans are also under the scanner and some regulatory laws have been framed. The United States is an association of states. Certain laws are under state jurisdiction and certain under federal control. As far as these short term loans are concerned they are state subject and no federal law exists to regulate them.

But there is one exception to this scenario and that concerns pay day loans for members of the United States armed forces. In their case Congress has framed laws regulating the APR that can be charged to a service man. US Congress by an act in October 2006 has capped pay day lending for military personnel to 36 %.

Pay day loans as we know are also available to persons with bad credit. This is like opening a Pandora’s Box and earlier people with bad credit were charged interest rates of 600 or 800 percent. This is pure extortion. But now regulations are there that restrict these extortionist rates. Thus it is in your own interest to be aware of the rules and laws that regulate disbursal of these loans.

The states have also enacted laws that make it mandatory for the lender to disclose the APR he will charge as well as all rules and regulations regarding the loan. All this is supposed to be in simple language and there has to be transparency in all deals. Presently more than 30 states of the union have passed laws regulating such loans and advances. The information on these laws is available on the net and can be assessed easily.

However there is a hiatus in the laws of the states. Nearly 37 states have declared pay day lending as legal and laws are enacted to regulate these loans. However in a lot of states including Georgia, such loans are proscribed and illegal. However when not explicitly banned laws that prohibit payday lending are usually in the form of usury limits. In states that have not proscribed pay day loans, the interest rates are capped and the APR is controlled. This is a major regulatory practice.