Tag Archives: usually
Decoding Financial Gobbledygook
Thank goodness for the proliferation of Internet websites on loans. They have made life so much less complicated for all those lesser mortals who find it so tough to understand (so-called) simple concepts like redemption penalties, collateral, secured homeowner loans, unsecured loans, and so on. I no longer have to look to friends in the finance field to advise me on what loans to take and what not to. The world being driven by the cyber world these days, everybody has to learn to think for themselves. It was while trying to sift through the financial jargon that passes for English on the cyber world that I found the answers to many of my queries. Of course, I had to look through almost a dozen different websites and spend a couple of hours before finally reaching a complete understanding of the words that loan companies try to get our business with.
For starters, I managed to find out the difference between secured homeowner loans and unsecured loans. Now, secured loans of any kind are usually secured against some asset. Most often, this asset is a home. On the other hand, unsecured loans need no such security, which is one reason why the time taken to get hold of an unsecured loan is reduced considerably. After all, you could be giving the name of any property anywhere in the world and proclaiming that it is your own. Obviously, that is not going to work. So, you have to provide several documents to prove to the loan providers, that the property is your own. Most people who already own homes resort to secured homeowner loans because, in spite of the paperwork required, such loans are quite easily managed.
Finally, I understood what is meant by the term “collateral” (also a Tom Cruise movie). “Collateral” basically is the term used to mean “security”. So the house that secures the loan for you, works as your collateral. In case you are unable to repay the loan on time, you will have no choice but to bid goodbye to your home.
As regards an unsecured loan, it becomes easier to get one if you have a good credit history. People who do not have a history of good credit are usually treated like prodigal sons. They are made to pay quite a high rate of interest, getting loans is that much more severe, and in general, even getting a loan is a task and a half. But now that you have understood some of the concepts, you will find it easier to weigh and evaluate each loan.
Benefits of Payday Loans
A payday loan is required for many reasons nowadays and is sought after more, rather than traditional bank loans or borrowing from family and friends when you require cash urgently. Cash emergencies arise when you least expect it and there are instances that you cannot hold on until bank loans are processed and finalized. Online payday loans or payday loans are short term loans that are usually offered by payday loan companies and not banks. This has been highlighted in the recent years as a short term credit option for people who require cash advance loans. The benefits of payday loans are as follows.
Payday loans are easily accessible. You can apply for payday loans online, over the phone or even in person. Unlike traditional loans they require very little information other than your proof of income and bank account information. You have to be 18 years or older to apply and qualify for this facility. Payday loans are usually approved within 24 hours if you have provided them with accurate information. Unlike traditional loan schemes that take up to several weeks, payday loans can be approved and credited to your bank account the following business day and you can immediately make use of the cash.
Another advantage of a payday loan is that it requires no credit check as opposed to traditional bank loans. Usually banks check your financial background before providing you with a loan facility. They check if you have defaulted with a payment and endured any type of financial crisis. But with payday loans, the only required information type is proof of your income and having a stable bank account.
Payday loans are also considered to be a credit management tool since this is mainly obtained to settle bills before your pay check arrives and settling it when it does. You also have easy access to the funds within one working day making it convenient and hassle free. Payday loans are mainly an easy way out of lifes financial difficulties. It only takes you to face a money emergency and then you apply for it online which is the most convenient way and sit back and relax until you receive the money shortly.