Personal Loans Explained
Confused over what type of loan to apply for? We admit, it can be overwhelming. In the post we will go over the various types of loans being offered. This will help you get a clearer understanding of the types of loans available to you.
How online PayDay Loans or cash advance loans work? Online PayDay Loans usually work by first filling out a pre-approval application. 90% of the time, your credit is not pulled. Most PayDay Loans are not based on your credit history, so, even if you have bad credit you are still welcome to apply. If having your credit pulled is a concern to you, check their FAQ’s page, that will usually tell you whether or not your credit will be pulled.
After you have filled out the initial PayDay Loans application, you should receive a response on whether you are pre-approved or not. Responses vary, but most online PayDay Loan companies will give you a response instantly. By clicking on the links on this site , you can view PayDay Loan companies and which ones can give you a 30-second approval.
If you are pre-approved, they will usually ask for some kind of income verification. Some online PayDay Loancompanies require you to fax them a pay stub and/or a bank statement. They sometimes want to verify that you have a valid phone number and email address. There are other companies who are “faxless” who help you get the loan processed without you having to fax in any verification. These loans usually verify income by telephone.
Once you have completed the companies PayDay Loans quick verification process, you will usually receive a direct deposit into your bank account the next business day. Most online PayDay Loan companies will deposit the money into your account within 24 hours.
Make sure, when you get a PayDay Loan, that you are using the PayDay Loans for the shortest amount of time possible and get the lowest cash amount you can get by with. This will help you keep your fees to a minimum.
Cash Advance Loans
A Cash Advance Loan is a short-term loan secured by your paycheck. It is also known as a “Payday Loan”. A Cash Advance Loans is a quick and confidential way to get a cash advance until your next payday. A Cash Advance Loans is a short term, high rate loan, where the lender requires the loan to be repaid on your next payday. Your funds can be used for anything you like, such as car bills, phone bills, medical emergencies, etc.
From time to time, we all find ourselves short on cash between paydays and this mainly occurs because we never know what’s round the corner. Cash Advance Loans are a quick, easy and confidential means to relieve your financial situation. All you need is a checking account in good standing and a steady paycheck to obtain cash till payday. You will need to be employed, have a permanent address, and an active checking account.
Cash Advance Loans , also referred to as payday loans or check advance loans, are short-term loans to help overcome various short-term financial needs. The purpose of a cash advance loan is to provide a way to pay for emergency or immediate expenses that cannot wait until your next payday. People often choose cash advance loans to cover small, unexpected, expenses and to avoid costly bounced-check fees or late payment penalties and other less desirable short-term credit options.
How does it work? When a Cash Advance Loan is approved, usually the borrower authorizes an automatic bank withdrawal, or writes a post dated check to the lender for the amount of the cash advance, plus the lenders fee. The lender then gives the borrower the amount of the check, minus their fee. The fees charged for a Cash Advance Loans are typically a percentage of the amount loaned. Lenders are required to provide a truth in lending disclosure that shows the full cost of the Cash Advance Loan .
You can apply and receive loans as often as you need to as long as your previous loan has been paid off. The term of the Cash Advance Loan usually ranges from about one to two weeks, with time extensions available, but more fees are charged for each extension.
If you do not have the funds available to repay the cash advance loan on the due date, you should contact the Cash Advance Loan lending company as soon as possible and make arrangements for an extension. However, this can be costly with additional fees and interest charges applied. While the fees can be high, they can be less than the alternative expenses, such as, late charges for utility reconnection, rent penalties, or bounced checks.
If you decide to use Cash Advance Loans, just remember that it is only a short term loan, and any extensions can be very expensive. Borrow only as much as you will be able to repay with your next paycheck and still have enough money to live on until the following payday.
Personal Loans For Bad Credit
Bad Credit Personal Loans are becoming easier to obtain for people with bad credit, especially on the internet, where companies are competing for your business. Lower interest rate than credit cards – Getting a Bad Credit Personal Loan can help you get the extra cash you need at a lower interest rate than you might pay for a credit card.
How is it different than a credit card? A Bad Credit Personal Loans are borrowed all at once and then paid off in monthly installments, unlike a credit card which is a revolving account (where you can borrow and pay off and borrow again).
Renters Welcome – The nice thing about Bad Credit Personal Loans, is that you do not have to be a homeowner to get approved.
Bad Credit Personal Loans – A Pay Day Loan May Be Your Best Option, No Credit Check
If you have bad credit, have an emergency and need some fast cash, an instant pay day loan online could be a quick solution for you than a Bad Credit Personal Loans. With online pay day loans, the lender does not pull your credit, so it doesn’t matter how poor your credit history is. Adverse credit will not hold you back from getting an instant cash loan. Pay day loan lenders will just need to verify your income with pay check stubs. They will also usually want to see bank statements to make sure you have an active checking account. The pay day loan or cash advance lender may want to verify some of your other information. Each online pay day loan company is different.
Pay day loan or cash advance loan companies will not pull your credit. There is no credit check because they base the loan off of the fact that you have employment verification. The money to be paid back will be automatically withdrawn from your checking account, usually right after your next pay day. You can tell the pay day loan company what day you would like the money to be withdrawn from your checking account. Usually you can borrow the cash for 2-3 weeks. The amounts you can borrow vary from company to company. Most of the time, you can borrow $300-$1000 depending on the company.
With bad credit, it can be difficult to get a Bad Credit Personal Loan and especially difficult if you need the cash quick. A pay day loan or cash advance loan is your best bet if your credit is bad and you need the money quick. The only drawback to these Bad Credit Loans is that the fees are high. You will usually pay about $10-$30 per hundred dollars borrowed, per week. So, you only want to borrow this money until your next pay day, you don’t want to depend on a Bad Credit Personal Loan like this for any type of long term need.
Unsecured Personal Loans
A Unsecured Personal Loans is an amount of money which you borrow from a bank, building society or other financial institution. Ordinarily, you will receive a lump sum. In return, you agree to make regular repayments, usually monthly. Assuming you have taken out a repayment loan, some of the money you repay will go towards servicing the loan and the rest of your payment will be used to pay off capital and reduce the outstanding debt.
A Unsecured Personal Loan can be a good option if you have a number of debts which you wish to consolidate into one loan. In doing so, you ought to be able to simplify your affairs and often reduce the overall cost of credit.
Banks, building societies and specialist finance companies all offer Unsecured Personal Loans, so you will need to shop around. Different lenders have different preferences when deciding which borrowers to take on. As a borrower when you’re considering one deal with another, make sure you’re comparing like with like. The interest rate to look for is the Annual Percentage Rate (APR).
The APR (Annual Percentage Rate) is a method of providing a true comparison between different Unsecured Personal Loan interest rates. It shows the true interest rate of the Unsecured Personal Loans you are being offered.
The lower the APR on a Unsecured Personal Loan the better because it means you have less interest to repay – so the Unsecured Personal Loans is cheaper. Interest rates vary. And, it’s worth bearing in mind that some lenders are only interested in lending to people whom they regard as a ‘low risk’. These people may secure lower interest rates.
Lenders vary in their approach, they’ll want to ask personal questions about your finances and your future plans before making up their mind on whether to lend and at what interest rate.
If you cannot pay back the Unsecured Personal Loan for whatever reason, talk to your lender at the earliest opportunity. They’ll want to consider carefully your individual situation. If they reasonably believe your financial situation may improve, they may be prepared to suspend Unsecured Personal Loans repayments for a while or extend the term of the Unsecured Personal Loan. In the final instance, they can insist on the debt being repaid.
Happiness is what they’re selling. Relief from the crushing weight of that gigantic rock we’re all forced to carry called ‘financial burden.’ It’s heavy and cumbersome, and the very thought of unloading it for a short time is so tempting, that some of us find it easy to throw caution to the wind and apply for the quick Cash Loans these small payday advance lenders offer.
Why not? The cops towed your car off, and you need eighty bucks to pay off the ticket. You can’t work without your car. You don’t have the money to get your car. You don’t get paid until next week. A cash advance seems like the logical solution. They don’t even look at your credit history. They just want to see a paycheck stub and a bank account. How easy is that? Then there’s that thing you’ve been wanting to buy…it’s only a few bucks more, so you may as well make it a hundred instead of eighty dollars. Oh, and your kid has been begging for that game. Another twenty won’t make a difference.
The excuses for more will keep adding up, and here’s this company ready and waiting to hand you a wad of cash. Cold hard cash. The kind that’s easy to spend, because it’s in your pocket (burning a hole) instead of in the bank (waiting for bills).
Why not? Because if you don’t have the money you need saved in the bank, it shows you have a hard time controlling your spending habits, and you’re probably going to have a hard time paying off Cash Loans. This means a new set of weekly fees that you hadn’t planned. Before you’re through, you’ll end up spending much more than you borrowed just in interest and late fees. Stop the mad cycle of easy Cash Loans and payday advances. You might have no choice but to borrow, but following a few simple steps can help eliminate the painful after-math of a cash advance.
Only borrow as much cash as you need
This might be one of the hardest parts. When you’re applying for Cash Loans , and you know you’ll be out of diapers before your paycheck comes, it’s so tempting to add a few bucks of spending cash to the credit line.
Stop yourself right there. Ask yourself a few questions.
Do I need this Cash Loan right now?
Will I spend the money immediately on something that is necessary?
Can I do without the money by conserving my resources?
Will I actually use the money on this excuse, or will I end up blowing it on something frivolous?
Can you wait for the extra money? You probably can. It’s nice to have everything you want without waiting for it, but it will save you a lot of money if you just hold off until payday.
Will you spend this money immediately? If you want to advance an extra thirty bucks so you’ll have enough to for gas on Friday, you should reconsider. If you know for certain that you’ll need it, fill your tank on the way home. Don’t carry the extra cash in your pocket, because you’re likely to spend it on something else.
Can you find another way to get by? Most of us are surprised by what we can accomplish when we’re strapped for cash. Use only half the soap for laundry loads. Buy the cheap hotdogs for supper tomorrow, and reheat last night’s meal for tonight. But don’t use credit.
Are you really going to spend the money on what you think you’re borrowing it for? Cash is hard to hold on to. You know your habits. If you’ve blown the grocery money at a restaurant before, then don’t borrow it.
Don’t let the Cash Loan late penalties kill you
You’ve followed good sense and only borrowed what you needed. You skimped by on as little as possible, and now your pantry and gas tank are empty. You want to stop at the bank, cash your check, and buy a few things before going to the Cash Loan company to take care of your advance.
Here’s where you’ll make your biggest mistake. When you have your paycheck, go straight out and pay off that Cash Loan…all of it. The groceries can wait. The movie rentals can wait. Your only concern should be to get out of debt. Most Cash Loan companies can cash your check for you. This will make it easier to do all at once. Don’t spend a single penny until your debts are satisfied. If you delay your payment, or only pay it partially, you’ll start that ugly cycle again, and who knows when it will end, or how much extra you’ll spend. Sell all your toys and eat macaroni and cheese for the next two weeks, but settle that Cash Loan .
Now it’s time for discipline
You borrowed only what you needed. You paid all your Cash Loans in full the very day your paycheck came. Now you’re debt free and living easy on payday. You even have a few extra bucks in your pocket. Maybe you can afford to buy the gourmet coffee. Just one cup to celebrate. Oh, and a doughnut to go with it. Wrong.
Now comes the real work. Now it’s time to roll up your sleeves and keep this from ever happening again. You need to restructure your spending habits. You need to stop thinking of those extra dollars as spending cash, and start thinking of them as your safety net. Put the money away. Put it in a different account. Not a checking account, but a savings account. One that you need to actually go to the bank in order to withdraw, because the situation will rise again. You’ll have another emergency, and you’ll need cash. Your car will get towed again, your water heater will stop working, or you’ll get a tooth ache and have to go to the dentist who only accepts payment at the time of service.
Here are a few tips to avoid frivolous spending.
Don’t carry cash. As mentioned before, cash burns a hole in your pocket, so don’t keep it with you. If you feel it’s necessary to have a stash, keep it at home. If you’re spending more than fifty dollars, sleep on it. We’ve all bought things on the spur of the moment and regretted it later. If you make a strict rule and hold yourself to it, you’ll cut down on most of these regrets. No credit means good credit. Cancel your credit cards. All of them. If you can’t do it, then take your one credit card, put it in a Tupperware bowl filled with water, and put the bowl in the freezer. Eliminate any records you have of your credit card numbers. Go through your monthly bills and decide which ones to eliminate. Don’t ‘decide if you can eliminate any.’ Decide that you’re going to get rid of at least one and figure out which one it is. We all have unnecessary monthly bills. Be honest. Do you really need two cell phones? Do you even need one? If you can eliminate one of them, and put exactly that amount away every month, you’ll be surprised at how fast your safety net grows. As you put away your groceries, look for items you can do without the next trip. Most people could cut down their grocery bills by over 25% just by not buying what will go to waste anyway. Look at everything you throw away, and ask yourself why you bought it to begin with.
Cash Loans are convenient, and sometimes necessary, but they are not ideal. They are for emergencies, but with some careful planning and healthy spending habits, you can avoid the need for them altogether.
High Risk Loans
Home prices in the Untied States continue to soar, and the remarkable run of real estate as the “must have” investment continues. The median price of a new home, which only recently crossed the $200,000 barrier, is now $215,000. The high prices of homes haven’t deterred buyers; sales in June reached a record number of units. There is some concern in Washington about the explosive real estate market, and Federal banking regulators issued lending guidelines in May that urged lenders to be more cautious when lending money for home purchases. How have lenders responded to these guidelines?
High-Risk Loans have made it even easier to borrow money.
It seems rather odd for lenders to make it easier to lend money after having been warned that they’ve been lending money too easily, but that’s exactly what has happened. Some banks have lowered the minimum credit score necessary to obtain a High-Risk Loan or increased the percentage of income that may be spent on a mortgage. Others have introduced High-Risk Loans that require no proof of income. Still others have begun offering a wider variety of no-interest High-Risk Loans and dangerous Option ARM High-Risk Loans, which can actually raise the principal of a loan after a buyer makes a payment. Why are lenders easing High-Risk Loan restrictions after being warned that they are too lenient?
The primary reason is competition. The market is red hot right now, and due to the fluctuations in the stock market in the last five years, everyone wants to invest money in real estate. With so many people flocking to borrow money, lenders want to do as much business as possible. They also want to do more business than their competitors. By lowering qualifying standards, lenders can approve High-Risk Loans. It’s that simple.
There are several problems with this High-Risk Loan scenario. Some percentage of buyers will always default on their mortgages. When the standards for obtaining a loan are lowered, that percentage will certainly increase. While foreclosures currently remain low, they combination of lowered standards and rising prices will certainly contribute to an increase. An expected increase in interest rates would make the situation worse.
The effects of these changes in High-Risk Loans can be felt by most anyone. If you are considering buying a home with a mortgage, be careful. Don’t automatically assume that you will be comfortable making a $3000 house payment just because the lender tells you that you “qualify” for it. You must still leave within your own means, and the mortgage broker isn’t really concerned about that. He or she just wants to sell the High-Risk Loan, and doing so may not be in your best interest.
If you are going to take out a High-Risk Loans, create a budget and determine how much you can comfortably pay each month. That figure will undoubtedly be less than what your broker is willing to offer. Stick with your own figure, and don’t let the fever of the marketplace sway you. After all, you are the one who has to make the payment each month on the High-Risk Loan.
Bad Credit Loans
Bad Credit Loan – Pre-Approval is Still Possible With Adverse Credit HistoryIf you are among the millions with less than perfect credit, there are many sources available to you in obtaining a mortgage. Lenders that specialize in Bad Credit Loans are competing for your business. The lender will analyze your credit report, credit score, debt-to-income ratio, and your employment history. You may also be asked to provide statements from your utility companies and other creditors to help form a complete picture of how you manage your finances. The lender will then inform you of how much you can afford to spend on a mortgage and the terms of the proposed home loan.
Bad Credit Loans will naturally be made with a higher rate of interest than for those with good credit. Keep in mind that your home will still appreciate in value and after maintaining a good payment history for a period of time, you may be able to refinance your mortgage at a lower interest rate and lower your monthly payments. Along with making you monthly mortgage payments in a timely manner, you can also help improve your credit rating by lowering your current debts, avoid applying for more new credit, and keeping your credit card balances low.
In applying for a Bad Credit Loan, ask your lender about the costs involved in obtaining the loan, the length and interest rate of your loan, and the ability to refinance at a lower rate down the road. Bad Credit Loans are available through many lenders and with a variety of terms and conditions. Bad Credit Loans can include a 2/28 home loan or a 3/27 home loan. The interest rate for a 2/28 Bad Credit Loan is fixed for two years and fixed for three years in a 3/27 Bad Credit Loan. This means that there will be a prepayment penalty during the first two or three years of the Bad Credit Loan and that Bad Credit Loans cannot be refinanced prior to that time.
Sub prime lenders will work with any credit score and income level to help you finance the home of your dreams at the lowest possible cost. Contact a couple lenders that specialize in Bad Credit Loans. There are numerous variations in the interest rates and terms offered by these Bad Credit Loan lenders. Shopping around for a Bad Credit Loan lender can save you thousands over the length of your home loan, even if your credit is less than perfect.
Bad Credit Loans .
Easier to get approved than ever – Bad Credit Loans are becoming easier to obtain for people with bad credit, especially on the internet, where companies are competing for your business. Lower interest rate than credit cards – Getting a Bad Credit Loan can help you get the extra cash you need at a lower interest rate than you might pay for a credit card.
How is it different than a credit card? A Bad Credit Loans are borrowed all at once and then paid off in monthly installments, unlike a credit card which is a revolving account (where you can borrow and pay off and borrow again).
Renters Welcome – The nice thing about Bad Credit Loan , is that you do not have to be a homeowner to get approved.