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Payday Loans How To Choose A Lender (Page 1 of 2)
Most of us have experienced a minor crisis which called for immediate cash. If you have been in this position you may have considered taking out a payday loan, also known as a cash advance or paycheck loan. It’s a well known fact that these loans feature steep finance charges, obligating the borrower to repay the debt at an annualized interest rate of over 900%. Because of the high cost of this form of borrowing, payday loans should only be used as a last resort. Using them frequently can trap a person in a dangerous cycle of debt.
If you decide on a cash advance loan you have a number of options. To the dismay of many lawmakers, this form of lending has proliferated throughout the US and Canada, and those who don’t have local access to a lender can easily find one online. In fact, your online payday loan options are so abundant that you may have some difficulty in settling upon a lender. The following are some unique features of payday loans, and a few guidelines to follow when getting one.
Exactly how high are the finance charges? A typical $250 payday loan carries finance charges from about $40 to $75, which translates into an APR of 400% to 800%. Not much of a bargain, but you can find significant differences from lender to lender.
One criteria you can use to compare payday loan companies is the maximum amount they will lend. The minimum amount is normally around $200, with the upper limit being somewhere around $2000. The precise amount will be determined by several factors including your income and work history. In many cases you will be able to increase the maximum amount for which you are eligible by building a history with the lender. Take care not to borrow more than you can afford to repay on the specified date, or you will incur even more finance charges.
How quickly will you receive your money? If you get the cash advance in person at a local establishment, you will have the cash as soon as you are approved. Online lenders take slightly longer, with the next business day being the norm. Some companies offer money wired into your account on the same business day provided you receive approval before a certain time, for instance 2:00 pm. You will probably pay more in fees for same-day service.
The minimum monthly income requirement for a payday loan can be as low as $800, not a big issue for most full time workers. Most lenders will not run a credit check; however, many of them use some type of tracking service that verifies identity and other information given by the loan applicant.
What if you are self employed or living on a fixed income like a pension or social security? Not all lenders will extend credit for this type of income, but you can find one with some persistence. In the event that you receive some non-traditional form of income that you want considered, the lender will verify the income by looking at your bank statements.
Do you happen to have access to a fax machine? With many payday loan companies, you won’t need it. “No Fax” lenders are the norm these days. While some lenders may require you to fax proof of income, most of the time everything can be verified online, saving valuable time in getting your money which can be deposited directly into your checking or savings account.
How To Obtain Your Bad Credit Loan Easily Today
If you have bad credit, you are probably all too familiar with rejection, possibly being turned down many times for credit that you need. It may seem as if heartless bankers do not care about your needs, just because a few past mistakes have made you appear to be a credit risk. If so, you might want to consider the friendlier lending environment online with lending institutions that specialize in bad credit loans.
Bad credit loans are for those with credit scores that are less than 650. Once your credit score has declined to this level, you can typically expect to pay more interest on any loan that you are lucky enough to qualify for. However, the online lending environment is more competitive with many lenders who are willing to give you the needed second chance to get you back on your feet while rebuilding your reputation as a creditworthy borrower.
Loans For Cars, Repairs And More
Whether you are looking for a bad credit personal loan, bad credit automobile loan, bad credit student loan, online lenders are standing ready to process your application without the hassle of the traditional lending institution in your hometown. Get money for a vehicle, appliances, home improvement, travel, education, etc., from the comfort of your own home without setting foot into a bank.
To apply, you will need to visit the lender’s online secure website, where you will find an application link. You will be asked to verify your identity, income, residence. Most of the material that you will use to document your circumstances can be easily emailed as well as transmitted via facsimile to the lender for quick processing. In addition, you may be asked to prove several personal references on your application.
Amounts Up To $10,000
When you apply, you can ask for any amount that you deem necessary for your needs. Most bad credit loans start out as low as $5,000 or may be for as much as $10,000 – more under certain circumstances.
You can make your application for your bad credit loan look even more appealing by applying with a creditworthy cosigner. Your cosigner should have good, established credit as well as be willing to pay the loan in the event that you fail to do so. Your cosigner can be a relative, friend, co-worker.
Another strategy to enhance your approval is to pledge a security against the loan. This security is known as collateral. Collateral can be your home, vehicle, boat, real estate – any item of true value that you can prove legal ownership of by presenting a title of ownership for. It is important for you to keep in mind that any item you allow the bank to use as security for your loan stands the chance of being taken should you fail to make your payments.
Easy Receipt Of Funds
You can receive your bad credit loan in two convenient ways. You might choose to receive your bad credit loan electronically via an electronic funds transfer to your bank account. You can also elect to receive a paper check that will be mailed to your home address. The fastest way, of course, is to receive the electronic deposit, for which there may be a small fee.