Tag: Payday loans near me

Payday Loans vs. Bank Loans –What’s the Right Choice When You Need Cash Now?

Posted on by Michael Hodges

If you need extra cash to cover expenses, you’re probably trying to figure out the best way to borrow money. There are several options to consider, including borrowing money from friends or family, getting a cash advance with your credit card, taking out a traditional bank loan and applying for a payday loan. This article will cover the last two options—bankloans and payday loans—andcompare the requirements and advantages of each. After reading more, perhaps you’ll have a better idea of which is the right choice for you.

There are several important factors to consider when deciding which type of loan you need. Do you need a large amount? What is your credit history? When will you be able to pay back the loan? Let’s look at a few key points that can help you decide if you if you should apply for a bank loan or a payday loan:

When do you need the money?

A bank’s loan approval process takes time—typicallyweeks (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.

What is your credit score?

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. See more!

How much do you need to borrow?

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. When are you able to repay the 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.

Finally, a note about interest rates…

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. Click here for more information: http://www.blogincomelife.com/the-4-types-of-short-term-loans-every-business-owner-should-know/

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The 4 Types of Short-Term Loans Every Business Owner Should Know

Posted on by Michael Hodges

With all the common information about short-term loans, it is time to delve into the details. To look closely at your short-term loan options, we have divided them into the 4 main types of short-term loans. Let’s look at what these short-term financing options can provide your company:

1) Merchant Cash Advances

The first type of short-term loan on our list is not really a loan, it’s a down payment. That said, a cash advance from a merchant is when a lender buys future sales of your company’s credit cards, so it basically serves the same purpose as a short-term loan. This type of short-term loan is one of the most widespread and accessible types of commercial financing. On the other hand, it is also often the most expensive type of short-term loan.

Cash advances from merchants are paid through the point-of-purchase technology of the credit card, either a tablet supplement or a simple credit card machine. Your lender will cut off a daily percentage of the income of your company’s credit card even before they reach your company’s accounts. This will happen every day that your company transacts with a credit card until the cash advance from your merchant is canceled completely.

2) Lines of Credit

This short-term loan option works much like a commercial credit card: you will receive a credit limit that you can use as required and then reimburse what you spend regularly. However, this short-term financing option is always made in cash, while commercial credit cards usually charge you high fees for cash advances. In addition, you will generally be able to access lower annual percentage rates with a commercial credit line than with a commercial credit card. That said, commercial credit lines do not come with the rewards, such as cash reimbursement or travel miles that a commercial credit card can offer you. More details!

3) Invoice Financing

This type of short-term loan serves to give a solution to a very particular financial problem: a cash flow suffocated by pending bills. Through bill financing, a lender advances a percentage, sometimes as high as 90%, of the value of your outstanding bill. Depending on the number of weeks your bill is outstanding when you receive funds; your advance will accrue interest at a fairly low rate.

After your client completes your bill, your lender will intercept the remaining percentage of your invoice, subtract and claim the interest that accrued and then return the rest of the invoice value to your company.

4) Short-Term Loans

As the name implies, the short-term loan is the most direct of your short-term loan options. This type of loan works like a condensed version of a traditional term loan: your company will get a lump sum of cash that it will pay, plus interest, consistent with a predetermined payment schedule for a predetermined period.

On the other hand, you will have to pay off short-term loans much faster than a traditional term loan. As such, they are usually less manageable in the context of the frequency and amount of payments, with high daily or weekly payments. As a result, short-term loans are usually one of the most reasonable options of all types of short-term loans available to small business owners.

Conclusion

While it may seem that a small business loan will always involve a lot of paperwork and waiting weeks, most short-term loans can finance your business in less than a week, if not a day. You have already completed the hardest part: get all the essential information about your choices, reading this article. The next step is just easy, you just have to apply and you will be well on your way to getting the financing your company needs to grow. For more details, visit: https://smallbusiness.chron.com/ways-short-term-loan-3613.html

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5 Alarming Payday Loan Statistics

Posted on by Michael Hodges

Thousands look for payday loans near me as they believe that’s their best option. It’s easy to see why there are so many borrowers who look to payday loans and in a way they can offer so much. However, while they do have their good points there are also some alarming concerns coming to the table. So, what do you need to know about payday loans and what statistics should you learn about?

The 5 Statistics You Need To Know

  1. Almost All Borrowers Spend 200 Days Per Year Drowning In Debt
  2. 14% Of All Borrowers Can’t Afford The Loan
  3. Apr Can Run As High As 400%
  4. 80% Of Borrowers Roll Their Loans Over To The Following Month
  5. More Than 69% Of Borrowers Use Loans To Pay For Everyday Expenses

Payday loans offer a lot of great advantages, but, that doesn’t mean to say there aren’t still some shocking facts about them. Yes, there are reasons to opt for these types of loans over many others, but at the same time, there are also reasons to be careful of them. What you have to remember is that a payday loan might not be suited for you at this time and you have to be very cautious before you delve into this lending stream. However, that doesn’t mean to say they can’t be suitable, but you need a great loan and a wonderful lender.

Think Before You Act

People often rush to get a loan for one reason or another and that’s perfectly reasonable. When you’re in a financial muddle you want to resolve the situation fast, but that doesn’t mean you should rush into a payday loan – or indeed any loan. Loans are a last resort or they should be in any case simply because they’re adding more pressure to your already stretched finances. When you’re thinking about payday loans near me you should ensure this is the route you absolutely want to take. You have to make sure the lender you choose has a great reputation and they offer a loan that suits your needs also.

Payday Loans Work – If You Can Afford Them!

Payday loans near me are great! You shouldn’t have too much trouble finding a loan that fits your requirements. However, what you need to know is that payday loans are only good if you can actually afford to repay them. Now, you might think you’re going to be able to, but, this is technically a short-term loan and while you can roll them over to the next month it’s not advisable. The reason why is simply because there are additional fees included and it’s best to pay them off as soon as you can. Think about whether or not the loan works for you and whether or not it’s something you can afford too.

Don’t Become a Statistic

Do you want to become another statistic? Do you want to fall into the category of being unable to pay the loan and defaulting? Do you want to be the one who has to use the loans to pay their bills every month? Sometimes, you have to take a step back and say, ‘is this for me? Can I afford a payday loan and will it help me or cause further financial problems?’ That is something you have to ask so that you don’t make a mistake with your finances. Payday loans are great, but they don’t work for everyone. Click here for more information: https://www.forbes.com/sites/donnafuscaldo/2019/02/07/new-payday-lending-rules-present-an-opportunity-for-fintechs/

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Title Loans vs. Payday Loans: Which Are Better?

Posted on by Michael Hodges


People who have an emergency need for liquid funds generally do not have the time to go through the lengthy process needed to obtain a long-term loan from the main bank. Or, they may already have a bad credit rating, which prevents them from being approved. These people may be entitled to receive immediate assistance in the form of payday loans or title loans. Regardless of some overlapping characteristics, these types of loans have clear distinctions and borrowers must know all the details before signing their names on the dotted line.

Here is a fast overview that can help you decide if a payday loan or a title loan is the best for you:

What Are the Title Loans?

The defining feature of a title loan is that it should be backed by some type of guarantee, particularly by the title of a car. The maximum loan amount is generally based on a percentage of the estimated value of the car, but the title loans can be received for amounts as low as $ 100. Just depending on the amount and the correct agreement with the institution granting the loan, the Debt can be settled at once or in many installments over a period of time.

In order to qualify for this type of financial assistance, it is essential to have clear legal ownership of the vehicle, without any prior responsibility for the same auto title. The credit history is fully irrelevant in this case because the transaction is backed by tangible assets. Then, almost all owners of cars, trucks or recreational vehicles can count on this type of loan when the situation requires it.

What Are Payday Loans?

Payday loans do not require any kind of property as collateral, as they are linked to the regular income of the borrower and are reimbursed as soon as the next paycheck arrives. This method of financing is generally used to overcome a temporary cash shortage and make ends meet until you get your next paycheck. Payday loans can be issued very rapidly, despite credit rating or existing obligations, so they are popular with people who might not otherwise be able to get long-term credit or who are not willing to wait for the process of a bank loan is completed.

What Type of Loan Is Better?

Each type of loan has its own advantages and disadvantages. Regardless of their considerable similarities, title loans and payday loans are intended for various situations and lenders must know the exact conditions to properly estimate which one they really require. It would be a fault to compare these two types of loan and ignore the small but relevant differences that could have grave consequences when the loan expires.

Payday loans are generally a better option when you immediately need to spend some cash, there are still a few days left until your next paycheck and you are willing to pay the full loan with your next paycheck. But if the required amount is greater than your weekly income or you cannot sensibly pay what you owe with your next paycheck, title loans become the smartest option. Individual circumstances can vary and the final decision just depends on a number of factors, such as people who do not own a vehicle obviously would not qualify for a title loan.

see more:
https://www.get.com/guide/personal-bank-loans-vs-payday-loans/

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