Tag: Payday

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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TITTLE LOANS VS. PAYDAY LOANS: WHICH ARE BETTER

Posted on by Michael Hodges

INTRODUCTION

In a situation where emergency need for cash arises and the loans are not forthcoming, title loans and payday loans may seem to be the saving grace. The fact that they are easier to qualify for and need lesser papaerwork when compared to standard bank loans makes them attractive. However, their high interest rates, unfavorable terms, additional fees and aggressive collection measures will pose a nightmare to the borrower. Choosing between payday loans and title loans , is synonymous to choosing between the “devil and the red sea” or between two terminal illnesses.

PAYDAY LOANS

Payday loans are short-term cash advances against a paycheck, they come with an  pre-authorized check acting as collateral. Payday loans online are available and can take around to 15 minutes to apply for and the money sent to your a checking account within 24 hours, ideally. Payday lender most times, never check credit ratings of their borrowers unlike the banks, all they need is evidence of a steady paycheck. A major scare in payday loans is that they come with exorbitant interest rates (APR) of about 400% , they also come with additional  charges of about $15 per $100 borrowed and aggressive collection techniques. In case of default, you may suffer an overdraft from your bank or the lender rolls your loan into a subsequent two weeks term, with additional penalty charges.

TITTLE LOANS

Title loan lenders offer short term loans while holding your motorcycle or vehicle’s title as collateral. The lender evaluates the vehicle value and lends up to a percentage of that value. Title loans usually are larger than payday loans because of the collateral. They also come with exorbitant loan APR of about 300% as well as additional charges. In event of failing to repay your title loan, you may be lucky if your lender offers to roll the plan into a new 30 days plan although with penalty charge.  In worse scenarios, your title is sold off to repay the loan. Read more.

WHICH IS BETTER?

Choosing between payday loans and title loans is a herculean task, given that they almost bear more harm than good.  Payday loans come with an APR of about 400% while title loans come with 300%. This is far above standard rates and credit card rates, but if you call this a deal, title loans seem better. Also, there is no need for collateral when applying for payday loans but this is needed to get a title loan. Both are fine too, for persons with low credit ratings and can’t access bank loans. Too, payday loans are paid in full but on negotiations with your title loan lender, the option of installment can be allowed.

Nevertheless, choosing either of both loans is risky because your property is on the line if you default in your title loans, especially with the high additional fees and interest rates.  Also, payday loans when repaid can leave one with little money to settle his/her regular financial obligations, thereby throwing him/her into a cycle of debts.

CONCLUSION

Payday loans online and title aren’t any good options for sourcing funds, in the face of financial difficulty. Borrowing from the family, loans from the banks, lending societies and even credit card is more advisable. Even asking your employer for a payday advance is more reasonable. Payday and title loans are never advisable except all alternative avenues are closed, then you should think carefully to know if the financial crisis is worth the risk and is urgently important. Click here for more information: https://www.unclebuck.co.uk/payday-loans/

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Advantages of Applying for an Online Payday Loans

Advantages of Applying for an Online Payday Loans

Posted on by Dorothy Clark

Who isn’t looking for payday loans near me? Over the last decade or so, more are searching for a payday loan and they can actually be far better than you think. Recently, they have had a lot of bad press over some unscrupulous lenders but if you take the time to find a suitable one, you shouldn’t have too much trouble. Not convinced? You aren’t alone in this as a lot of people aren’t sure over a payday loan. What are the advantages of applying for an online payday loan? Click here if you like to know more about payday loan essentials.

You Get an Answer within 24 Hours

Traditional loans have a very simple application system but the actual processing time is somewhat lengthy. For most people, if they need a loan, they need it in a timely manner and in truth they can’t always afford to wait two or three weeks to be approved. However, with payday loans, they don’t offer a lengthy waiting time; within twenty four hours, approval can be given. That is really quite interesting and very unique as a lot of lenders would never offer such a quick acceptance time. It’s really one of the advantages of the online payday lenders.

Advantages of Applying for an Online Payday Loans

Your Credit Isn’t a Problem

Another factor which isn’t given much thought is your credit. Now, that is very strange to say because most lenders would absolutely take a very in-depth look at your credit but payday lenders are different. Yes, they like to see creditors with perfect credit but as long as they are able to repay the loan, they are not really overly bothered! In truth, payday loans near me are popular with more people searching for them. However, lenders are able to offer them because they are short-term loans so people more often than not, repay within the next pay period. Learn more about the CFPB’s long-awaited rule on payday loans.

You Can Get a Small or Large Loan

Payday loans vary considerably. The loan amount can range from one hundred to one thousand and that’s fantastic. These loans are designed really for borrowers who need quick cash but who also want to repay within a few weeks. With many banks they don’t have that option as usually banks give out larger loans and have a six or twelve month repayment time. However, being able to get a smaller loan as and when it’s needed can be useful for those who need quick cash until the next pay day. It’s useful in a variety ways. Visit http://www.blogincomelife.com/are-online-payday-loans-right-for-you/ for online payday loans information.

A Payday Loan Offers Some Excellent Advantages

While you might not have given much thought over the use of payday loans, they can actually offer a great deal of benefits over many other loans. Yes, they have had some bad press recently but if you know what you’re getting into and choose a good lender then you really shouldn’t have too much trouble with them. A payday loan can offer many great advantages that enable you to get far more for your money and a simple way to repay too. Payday loans shouldn’t be feared as long as you know what you’re getting into.

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Top Secrets to Get an Online Payday Loan

Top Secrets to Get an Online Payday Loan

Posted on by Dorothy Clark

Obtaining payday loans have become very popular within the last few years. For most people, they have the need to obtain fast cash without having to go through a lot of red tape. Unfortunately, for one reason or another, traditional lending streams take weeks to give you an answer over whether or not you’re eligible for a loan. It’s not ideal, especially if you want the money in a quicker manner. However, with a payday loan, you need to ensure you get the very best in order to make these work for you. Want to know a few top secrets to get an online payday loan?

You Can Compare Lenders to Get the Best Deal

Borrowers often forget to compare lenders and the loans they’re offering too. If you want a really good loan then you must compare! This is a very basic secret everyone seems to forget but if you don’t compare loans and lenders you’ll end up with a loan that doesn’t really work for you. Instead, you have to take a little time out to compare one lender and their loans to other similar lenders. This will be the best way to get a suitable loan. Getting payday loans online is very easy but it’s so simple to get the wrong one; you don’t want that, so take the time to compare! Visit www.unclebuck.co.uk for more detail on payday loans.

Top Secrets to Get an Online Payday Loan

Apply for an Online Payday Loan Once Per Month

If you start applying for more than one loan you might get refused. A lot of borrowers think it’s best to apply for several payday loans at once, just in case their first lender turns down their loan application. However, lenders, even payday lenders don’t like to see borrowers who are potentially taking out credit lines here, there and everywhere! Instead, you have to consider applying for one loan at a time. Also, if you require another payday loan after the initial one, try to avoid applying in the same month. Again, it doesn’t look good if you’re constantly applying for loans. Click here for payday loan lenders.

Be Smart: Apply for a Loan Amount that Works for You

When you’re looking for payday loans online you have to be smart as to how you approach the application process. It’s not about making the best impression because sometimes online lenders don’t really care as long as they get their money back; it’s really about how much you ask for. Borrowers who try to get the maximum loan amount out can often find they get refused. Why is that? Quite simply, lenders don’t know them well enough to hand out large amounts. That is why sometimes it’s best to opt for a more manageable amount. Payday loans online are approved all the time but they can also be rejected down to how much the borrower is asking to borrow. Learn more about how to find the right loan for you.

Get the Right Payday Loans

Payday loans are very popular but you have to be smart if you want to get a good loan. Yes, anyone can apply and be approved for a loan but getting one that is good for you is another matter. What’s more, lenders are being a lot more skeptical over whom they hand money over to and you can’t always count on being approved. The above are a few good secrets that might enable you to get the best payday loans online.

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Are Online Payday Loans Right for You?

Are Online Payday Loans Right for You?

Posted on by Dorothy Clark

Millions search for payday loans online each and every day and it’s quite easy to see why they have become so popular. Getting fast cash is very popular especially for those who don’t need to borrow the money for a long time but it’s not always easy to know which loan, if any, are suitable. You can honestly think going to the bank is better and even then you aren’t convinced it’s the right move. Payday loans might be the right option for you, even if your credit isn’t at its best but how can you be sure it’s right for you? Learn more about top secrets to get an online payday loan.

Payday Loans Are Good for Borrowers Who Need Fast Cash for a Short Period of Time

For those looking to borrow money over a prolonged period of time, a payday loan is not suited for them. What you do have to remember is that more often than not, the whole point of the payday loan is to borrow money until your next payday at work so it’s really a two to four week loan. While some people go over that time period, they were designed to be short-term loans. Payday loans online are ideal for those who want to borrow a small amount and until their next payday at work. Now you know what a payday loan entails, this is right for you? Everyone is different and while some will find these loans to be ideal, other’s will not. It depends on your situation currently. Click here for more detail on payday loans

Are Online Payday Loans Right for You?

Don’t just take Out a Payday Loan because it’s Faster

Payday loans are usually approved or rejected within twenty four hours, if not slightly less, but that is no reason to jump into these loans without thinking first. Remember, if you don’t have the ability to pay the loan back within a few weeks you might find the loans roll over until the next month and then there is more interest. It can be a vicious circle if the loans are not suitable for you and your circumstances. It is very important to understand what a payday loan is as well as what you actually need. Visit www.consumer.ftc.gov/articles/0097-payday-loans to get further detail on payday loans online.

How Can You Tell if You Should Use a Payday Loan?

It really comes down to how much you wish to borrow and over what period of time do you wish to repay? For instance, do you require a few hundred and have the ability to repay at the next time in which you are paid at work? If that is the case, then a payday loan might be suitable for you. However, if you wish to take out a larger amount and repay over the course of the year, payday loans online are not for you at this time. In truth, a payday loan should be only taken out by someone who has the means to repay within a few weeks.

Choose Your Next Loan Wisely

There are lots of loans and while you might like the idea of a payday loan, it might not be suitable for you at this time. However, that doesn’t mean to say you can’t look at a few payday loans and see what loans are available to you. Whether or not a payday loan is right for you depend entirely on the need for the money, how much you wish to borrow and when you wish to repay. Sometimes, payday loans are far more appealing as it means you can repay within a few weeks.

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