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Monthly Archives: April 2018

Payday Loan Companies

In all its glory, these fast payday loan direct lending companies have made it easy for those who should be looking at cutting back on their expenses and lowering their debt. Instead of solving the problem of having poor credit, people seek out quick fixes. Before any more third party money is used, credit utilization rates should be understood.

Credit utilization rate is based on the ratio between how much you owe creditors and how much you could potentially owe. Take all of your credit card statements and set them on the table. Get yourself a calculator and find the sum of the outstanding balances for them all. This is your aggregate credit card debt. Next, go back through your statements and find the sum of the credit limits. This will tell you that if you charged every penny on each card, you could potentially be that much in debt. Finally divide the aggregate debt by your potential debt to find your credit utilization ratio. The higher your score, the worse shape your credit score is in. Since this ratio is used as approximately one-third of your credit score, it should be taken very seriously.

Individuals do have control over what direction their credit score moves. If you are looking to improve your number, then it is good to start by looking at the real scenario. How much is your take-home income each month? What is your total budget for monthly expenses? Is there anything left-over? What would be the best use of that money?

Besides spreading the extra out among paying off a priority debt you also need to think about saving some for any upcoming emergency. Why save and pay debt at the same time? It’s a good question. Many people like to place it all on a credit card in order to quicken the payoff pace. It seems like a great idea, but it won’t protect you from future money emergencies. If you don’t create a savings simultaneously, the next unexpected cost will end up back on the card diminishing some of your hard work. Using credit cards or applying for small loans with responsible payday loan companies on line may seem like a good solution at the time. In fact, for some people who have not built up enough savings to cover the extra costs, having these options can help save the day. The trick here is to only use what you absolutely have to use. Use what you have already saved and juggle what you can from non-fixed budget categories (i,e. groceries fuel, clothing). This way you can borrow the least amount of third party cash.

Get A Payday Loan Refund

1. Fraudulent loans – They are some of the most common among complainants seeking refunds. It is possible for the payday loans to be taken out in your name fraudulently. It is the responsibility of lender to verify identity of customer before approving the loans, but most are not that careful hence the many cases around this issue. If you start getting harassed for a loan, you have no idea about, you have every right to look into the matter. You can try to settle things with the lender or you can directly deal with the financial ombudsman service to get the assistance you need.

2. Unclear repayment – Repayment defaulting can get serious because your debt just keeps on piling in terms of interests and any other charges attracted by the failure to pay. As an applicant, you should get very clear terms of how to pay back the loan including the fees and timeframe. Before you take up the loans you should know the exact total you need to pay back and within what time. When such important information is hidden from you, you can make a complaint to have the extra charges refunded or unreasonable debts taken off your payday loan.

3. Recurring payments – Payday loan providers collect their payment through bank requests. Most use continuous payment authority and you should ensure that you are aware of what this is and you can cancel it. A good lender should also notify you before taking the money out of your bank. There are lenders who keep trying to get access to the funds throughout the day and this translates into huge bank charges for you at the end of the day. You can lay claim of such to have some of the charges offset by the lender.

4. Financial situation – You may be in need of the loan, but it is really up to the lender to determine how qualified you are in terms of repaying the loan on time. Your income, employment, mental health, age, credit history and identity are some of the serious checks the lender should check before approving the payday loans. In case you are unable to repay and the lender overlooked all details with regard to your financial situation, you may actually qualify for a refund.

5. Higher interest rates – Most people when taking out payday loans rarely pay attention to the interest rates. A desperate financial situation can make you ignore such hence end up being charged interest rates that are unfairly high making it harder for you to repay the loan. Lenders are limited to cost cap of around 0.8% of the total about borrowed. This should be inclusive of interest and any other fees applicable to the payday loan. If you are a keen borrower, you will be able to tell when the interests are excessive as well as the fees and this way you can claim for a refund from your lender.

Get an Emergency Payday Loan

Payday Loans Are A Booming Business

Payday lenders have had seen booming success worldwide, and credit that success to offering a service that was not formerly available. They point out that emergency cash loans offer an attractive alternative to people who are not able or willing to use less expensive conventional routes to borrow money. Some companies that offer emergency cash advances in the UK have described their approach as a handy financial service for young, Web-savvy borrowers, accustomed to the ease and convenience of instantaneous online communication. These applicants often feel left out of the conventional banking system. Today’s modern consumer, raised entirely with social media, can even apply for these micro-loans using their smartphones, with money transferred to successful applicant’s bank accounts within minutes.

Compare Payday Loans With Other Loan Types

Many types of short-term loans can seem expensive when the fees associated with the loan are factored as yearly APR. For that reason, payday lenders prefer to compare their loan products to bank overdraft fees and other charges that traditional lenders use to recoup funds. Many payday lenders don’t even characterize their business as banks, simply as another form of Internet technology, used to connect willing borrowers with willing lenders.

Payday Loans Are Available 24/7

As traditional outlets for loans become harder to find and are requiring larger and larger amounts of paperwork for even small loans, payday advances have stepped in to fill the vacuum. They’re available day and night, seven days a week, and in many cases the process is so fully automated that loans are granted without the borrower ever having to speak to another person. After applicants have established a track record of successfully paying off cash advance loans, some lenders only require applicants to text the amount of the desired loan, and the term of the loan desired, and the money is instantly made available.

So Why Would I Pay the Added Interest?

Sometimes it’s an unexpected emergency, or it may be that an opportunity has come up you couldn’t possibly pass up. Is it tickets to the playoff? Has a friend obtained access to ringside seats at the “fight of the century”? Or maybe you have committed an unforgivable sin and forgotten your significant others birthday…

Whatever the reason, you’re short on cash. If you haven’t got credit cards and maybe your friends and family are not in a position to help out. What do you do?

It’s increasingly common for those in immediate financial need to approach a short-term lending company for a “payday loan”. These loans are often unsecured, meaning the borrower has no collateral to provide. This makes the loans a high-risk cash advance for the lending company. If the borrower bails, there’s nothing of value to collect. They compensate for the increased risk by charging very high-interest rates.

The applicant usually must provide proof of employment, and government issued identification. The idea is that when the applicant’s next pay check is issued, the funds will be used to pay off the loan. In some cases, the loans may be made for the borrower to purchase a car or other big-ticket item. In these cases, there is somewhat less risk involved for the lender. The item may be re-possessed should the applicant fail to repay the loan as promised.

So What is the Bottom Line

Companies around the world offer payday loan services including Canada, the United States, Australia and Great Britain. The rules and regulations regarding how much interest may be charged, and limits on the amounts of the loans vary depending on the country, state, province or county where the payday loan company is located.

Right Lender for You

Does the lender have a good reputation? Do they look genuine and are they able to answer all your questions? Don’t commit until you feel confident that you’re entering into an agreement with an ethical, legitimate lender.

Do they have a consumer credit license? In order to lend money in the UK, all lenders must hold a consumer credit license. Responsible lenders must adhere to a set code of conduct according to the terms of their license. Avoid borrowing money from lenders who don’t have the consumer credit license as they could be trading illegally.

Are you clear on what you will be paying and when? A responsible lender should provide you with a clear schedule of the repayments of any money you borrow, including the dates, amounts and how it should be paid.

How long will you have to pay back the loan?This varies from lender to lender. Some loans would need to be paid back in 30 days, others might be longer. Make sure that you will have the money to pay the loan back by that date.

How much is the interest (APR) on the loan on top of the original amount? Make sure you find out what the APR figure is on the loan. Since payday loans are designed to be paid back quickly, you should be aware of what you’ll pay in interest. Compare the rates with a few different lenders to make sure you’re getting a good deal. And don’t make any commitments until you are certain you will be able to afford the repayments.

What will happen if you can’t afford the repayments? Find out from the lender whether there would be any additional charges if a payment is missed.

Is the company a real lender or a broker?Some companies which present themselves as a lender are actually a broker, and it may work out better for you to borrow direct from the lender. If you do decide to go with a broker, do you know whether they will charge a fee?

If the lender can transfer the money very quickly after the loan is approved, will they charge you extra for this service?

There are many different types of loans available, so make sure you do your research and this will help you secure the best deal.