Understanding the Basics: Payday Loan Costs

26 Jun 2012 | No Comments | posted by cash-fast.net | in Articles

In the present economy, no matter how hard you try to save your money, your earnings are not enough to pay for the bills that you need to pay. Although you already anticipated these bills, there are times that you cannot help but spend your hard earned money especially during emergencies that can sometimes be overwhelming. You may foresee these emergency situations yet sometimes you need help from your family, friends and other times banks to help you when you are in a difficult situation. For others they turn to payday loans for aid when it comes to money. There are many advantages of payday loans. For example, there are payday loans online so it means faster application, no need for grueling interviews especially when you need the money badly, relationships are not in jeopardy, and many more which makes payday loans a great help when you need money.

Defining Payday Loans

A payday loan can be accessed online and this is helpful especially when there is a need to produce money fast. It is a cash advance scheme but only for a minimal amount of time and the money is directly deposited to your existing bank account. Companies offering payday loans seek to aid their customers in times when they need to spend money on bills that they need to pay immediately and cannot wait for their monthly salary. In this way, payday loans can help its customers by maintaining their financial stability and not stain their reputation with their creditors. Moreover, payday loans are faster than other loans offered by banks because the money is transmitted directly to your bank account and you can use the money right away. The amount that you borrow from payday loan companies, including the charges for the loan, is automatically deducted in your next salary. By the time comes when you already paid for your payday loans, you are not just able to save your credit status as well as adding more taxes to your income.

Cost of a Payday Loan

Payday loans may be an answer from heaven but you also need to be careful so you do not end up getting more bills to pay. It is safer to ask questions about the payday loans from the companies that offer them before signing the contract such as the fee that the company charges if you pursue getting a payday loan from them. You can ask the representative of the company to translate the figures in layman’s term so that you could fully grasp the amount of money that you need to pay. For instance, if you need to borrow $150, ask about what exactly is the amount that you need to give back to the company to cover your cash advance. There are companies that offer $20-30 in every $100 that you borrow and there are others who offer a much lower charge. There are states that control the percentage that can be charged in payday loans, and surprisingly even in that rule, you can still make an arrangement with the company to make the payday loan in favor of your capacity as a borrower. You need to scan every company that offer payday loans so that you will have clear view of the choices that you have.

Moreover, to prevent misunderstanding along the way, you can ask all the possible scenarios that may happen if you borrow money from cash advance companies such as if you cannot pay the additional charge for the loan and other payment options. Knowing the nooks and crannies of a certain loan will help you decide if that specific company offers the payday loan that is right for you. Remember that being fully aware of the situation that you are going to enter is the best prevention that you could do to protect yourself from being used by an opportunistic company. Payday loans may be of great help during emergencies but you also need to be careful when dealing with cash advance companies. You need to make sure that you can pay the loan and the additional charge of the loan in the future so that you will not find yourself in a sticky situation.

Ten Things That You Need To Consider Before Signing a Payday Loan and Cash Advances

23 Jun 2012 | No Comments | posted by cash-fast.net | in Articles

There are times that you just need help when it comes in dealing with your bills. Although there are many sources of money that one can turn to in times of need, you simply need to be cautious so that you do not end up as victims. Being knowledgeable about the options that you have is a good way to protect yourself from crooks especially your money that you save for a long time. This is just understandable because raising a family is not a walk in the park. You not only have to think about saving money for the present expenses of the family but also make room for emergency situations. You do not want to be faced with a problem with no solution at hand. That would be a suicide. Thus, everything should be clearly planned.

If you think of turning to payday loans as a way to pay for the bills that you need to pay right away such as in emergency scenarios, you need to think of the consequences of your action. You need to think about the how you can pay your debt and the additional charge with your current salary. Here are some tips that you need to ponder when you choose payday loans as a solution to your money problems.

• Before choosing payday loans, you need to make sure that you can pay your debt and the additional charges.
• When it’s time to pay your debt, as much as possible do pay it on time. This will make your financial status look stable to the creditors.
• Upon signing the contract between you and the cash advance company, make sure to read the document from top to bottom.
• Think about other source of money before turning to payday loans like your family and friends.
• You need to be straightforward with the cash advance company and present updated deposit information and precise bank statements. In this way, the company will not have any reason not to approve your request.
• When you need to pay your debt, schedule the payment date on your payday so you have the money to pay your debt on time.
• Payday loans are just last resort when you need money suddenly. Instead of always using payday loans during your times of need, you can practice saving up for your emergency fund right now. This will help you in times when you need money desperately. Just bear in mind to replace the money if ever you use your emergency fund so that it will never run out.
• If you always use payday loans as a way to cover your expenses, maybe you need a professional help, credit counseling to be precise. The counselor will guide you on what are the things that you need to change to strengthen your financial stability and prevent relying too much to payday loans.
• Make sure that you have enough money to pay the payday loan when the payment is due or else you need to pay a lot of fees such as the late payment, the withdrawal, and if you issue a bounce check.
• Do not be a victim of opportunistic cash advance companies. If you feel that they violated the contract, you can tell the authorities right away. Know your rights.

When you are aware of the things that are listed above, then you can get a clear view of the things that you need to expect before signing a contract to any companies that offer payday loans. Preparation is the key to defend you from unfair contracts so just in case, you can keep all the bank statements, phone conversations, and emails that you can use if the worse comes to worst.

How To Be Responsible With Payday Loans

20 Jun 2012 | No Comments | posted by cash-fast.net | in Articles

If you come across an emergency and you need money fast, you might consider a payday loan.  These loans offer financial relief when something unexpected comes up.  There is not any hassle when applying for a payday loan, making it a fast and easy process.  Credit checks are rarely done, and there is no need for collateral.

You can apply for a cash advance loan in person, over the phone, and online.  Most loan offices will go out of their way to get you to apply.  Plus, once you apply you find out if you are approved in less than twenty four hours.  Some loan offices you can find out instantly.

Payday loans are generally smaller.  Because of this, the lender will probably expect payment by the next month.  The loan office will check your source of income, making sure you do paychecks coming in regularly.  This is the most important information they will ask you, and will make or break your approval.

What Lenders Want To See

If you qualify for loan, you will have three important components.  Your paychecks from your source of income will be electronically deposited.  Your last payday loans, if you have been approved before, will have them paid off on time.  Plus, your loan amount will be significantly lower than your amount of income coming in.

After the lender makes sure the information is accurate, they will make sure the borrower can pay back the loan on time.  You do not have to have good credit to get approved, but you still must pay the loan off within the required time frame.

Being A Responsible Borrower

If you want to borrow money from any loan office, you need to provide the lender with good information.  Not being truthful to the loan office will just cause you a bigger financial burden.  They will require your banking information, such as routing and account number.  They will also want to know your name, phone number and current address.  Last, they will ask for your pay schedule, whether it is bi-weekly, monthly, or on the first and fifteenth every month.

When you are honest with the lender, you are also being honest with yourself.  Therefore, you will have better chances of getting another payday loan if you happen to need one.  Having good intentions to pay back the loan is the first step when applying for a payday loan.

Problems That Occur With Dishonesty

The first step in getting a payday loan is filling out an application.  If you have no source of income, but pretend that you do, it will mess up any chances of getting another loan.  Because you have to pay the loan back with your next paycheck, the loan office is going to make sure that you do have income.  They will look for proof, whether it is with a pay stub or an electronic deposit.

If you are getting the quick loan just to put off your debt collectors for another month, you will end up paying more money in the end.  The bills and debts will continuously pile up until you have exhausted every loan office.  Do not make the mistake of using a payday loan to help with long term financial troubles.  Avoid the snowball effect and take charge of your debt today.

In order for payday loan companies to stay in business, they need responsible, loyal customers who pay back the money they borrow.  Before you apply for this type of loan, ask yourself if you can pay it off within two weeks of borrowing.  If you cannot, then a payday loan is not for you.  Consider other options, such as unsecured long term loans, to help you with your financial burden.