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Low cost payday loan looking for a low-cost payday loan?
One of the solutions to have gained a lot of attention during the credit crunch is the low cost payday loan. This type of loan is made for an amount between $100 and $1500. It is generally repayable within 14 days and in most cases is secured against the applicants pay cheque.
The great news with this type of loan is that it is available very quickly, to a huge range of people and without any reference to your credit record. In fact, your privacy is guaranteed and no one will ever tell the credit reference agencies of the transaction which takes place between you and the low cost payday loan company.
These loans are exceptionally simple to get. Provided you have a job which can be verified by the low cost payday loan company and provided you have a checking account into which the money can be deposited, as long as you are over 18, you will qualify for this type of credit.
It isn’t designed to help you remodel your kitchen, it’s designed to help you to overcome some short-term emergency issue. These types of companies generally have excellent resources which can help you to budget in the future so that your need to access this new type of credit line is limited.
The costs are pretty good too. Today in America, if you bounce a cheque, it is likely to cost you up to $50. In addition to the monetary cost, there is a cost in the future relating to the damage that this type of transaction can do to your credit rating.
Borrowing $100 for 14 days from a low cost payday loan company will only cost you $15. This is less than a third of what a typical bounced cheque will cost you and it doesn’t do any damage to your credit rating.
What most customers are amazed at when they use this type of credit is how fast and easy it is. These types of companies are experts at providing the exact solution that people need in an emergency. Their key focus is or is to provide the money quickly and with the minimum of fuss and to put in place a fair agreement with you to have the money repaid from your next pay cheque.
Once the agreement has been reached, the money is deposited into your checking account within 24 hours and is repaid from the same checking account on the date that you stipulate.
If you have had an emergency and haven’t been able to raise the capital, you’ll know how frustrating and potentially damaging this can be.
Thanks to a low cost payday loan, millions of Americans now have access to capital that can help them get through this very difficult period.
Personal Secured Loans – What to watch out for
Obtaining a secured loan on your home can indeed save you a lot of money by helping you consolidate debt or paying off your credit card debt. Before jumping and signing loan documents, be sure to watch out for personal loan ripoffs that can lead to more expensive loans or even losing your property. Below are things you should consider before signing loan documents
Personal Loan Interest Rates: The Interest rate determines how much money in installment payments you are going to pay, and the total cost of the loan. Few percentage points increase in interest rate can lead to thousands in additional payments. Before settling on a secured loan, consider interest rate shopping to see if you can getter a better deal. Consider inquiring from about three to five lenders to see if you can save.
Before signing loan documents, READ the fine print. Sometimes we ignore those 20-30 pages but some lenders like to slip some terms and conditions in there. Most common is Early payment fees. Some lenders will penalize you for paying off the loan early. This can be frustrating.
Look out for PPI – Personal Payment Insurance: PPI is one way to make sure that your loan does not turn into a financial burden. Its optional and you may substitute disability insurance if you have any. This is however not calculated into the total cost of the loan. Thus your monthly payments may be more than listed on loan agreement. PPI is great but the cost can be extremely high. Sometimes lenders will bundle Personal Payment Insurance into the cost of the loan without informing consumers about it. If you absolutely need PPI,research other sources to find out if you can get the insurance at a cheaper rate. Do not feel obligated to take out PMI with the lender, you can get insurance from somewhere else.
Monthly payments are not the only factor to consider when calculating your loan. Additional costs such as PPI, loan closing fees and ledger fees should be added to the total cost of the loan.
Introductory rates can also be deceiving. We have seen reduced interest rates for 6 months! What happens after that? Do the payments increase in an attempt to bring the loan to term? Reduced interest payments may end up accumulating interest which in turn bears more interest.
Watch out for unsolicited offers. Research such companies and brokers. Some loan officers will get paid more if they sign you onto a high interest loan. Door to door marketers should also be avoided. A loan officer should not pressure you for an immediate decision. If he does, that raises a red flag. You should take time to discuss the loan documents with a qualified person. You should not at any time be forced to make an immediate decision. Most of the time a hurried decision leads to mistakes that can lead to hundreds in payment costs.Any company or broker that asks for a deposit/security is obviously a fraud.