Fast Cash

When Is It A Good Idea To Use Payday Loans?

theempire — Sun, 15 Jan 2012 20:24:45 +0000

Using payday loans is risky business. They are expensive and difficult to pay off. However, there is a time and a place when they make perfect sense to use. In this post I want to cover when this is, and share some details of why they are so risky. One of the biggest things I preach on this site is to arm yourself with some knowledge before you decide if fast cash loans are the right choice, and I feel that we haven’t really discussed this matter yet.

When Does It Make Sense To Use Payday Loans?

Emergencies are the most common time to use a loan like this. Car repairs that can’t wait, a new hot water heater, or paying the emergency room (unless they allow you to make payments to them). Other common uses for them are bills that fall between your paydays, namely your rent.

Uncommon things that still make sense are having to travel for a job interview and not having the money to get there, or having to buy school supplies for your kid. These are expenses that are mandatory, but since you’re between paydays you simply can’t afford them right now.

When Is It Not A Good Idea?

This could be a very long list, but we can sum it up with “just about everything else!”

Some people use payday loans for fun money, which is a horrible idea. You don’t want to buy food and smokes with borrowed money! That leads to wasting the money and then the payday loan trap, which we’ll cover in the next section.

Other times when these loans should be avoided is when your payday is still a long way away, or not coming at all, and when your next paycheck is already spent before you get it. It’s safe to assume that almost half of your next paycheck is going to be spent on paying your loan back, so factor that in as well.

So What Are The Risks?

Some times when people use payday loans they end up taking other loans to cover the ones that they have to pay back. This is called the payday loan trap, and it’s damn near impossible to get out of it. This article from The Nashville Ledger covers this perfectly if you’re interested in seeing just how bad it can be.

All problems stem from the high price and timing of repayment. You can expect to pay somewhere in the range of $20 for each $100 that you borrow. The amount that you actually pay is regulated by your state’s government, but you can expect to pay whatever the maximum amount is. Using the $20 from above, a $500 payday loan is going to cost you at least $600 out of your next paycheck, plus whatever ridiculous fees the lender is going to charge you. Can you afford to have that much of your next paycheck gone before you get to touch it?

The lender will likely give you the option to rollover your loan, or extend its terms. Accepting this offer is the precise moment that you start down the payday loan trap! Fees are added along with you borrowing more money, and until you’re completely clear from the loan every paycheck you get will go to the lender to cover this.

So Is It Worth It?

I firmly believe that you should do your research on payday loans then sleep on it before applying for anything. There are other options out there that can help out, check out these other articles on Fast Cash Authority for some ideas:

If you choose payday loans, please do so responsibly. There are a lot of ways to get into trouble with these, but it’s also easy to stay safe!

Understanding Installment Loans From Payday Lenders – They Might Not Work How You Think They Do!

theempire — Sat, 14 Jan 2012 17:39:48 +0000

The definition of installment loans is a loan that is repaid over time with a set number of scheduled payments, but one that comes from a payday lender and your local bank are going to be very different. The most glaring difference is the extreme price, but there are other things as well. Knowing what you’re getting into before you apply for a loan is one of the single best things that you can do to protect yourself from falling into major debt. This post will help clear up some of the myths surrounding these loans so that you can apply with confidence if you choose to.

So What Is The Real Cost Of Installment Loans?

Getting an unsecured personal loan from your bank is likely to net you a fixed APR of somewhere between 6-15%, which is great if you can take this route. Most banks will set the loan minimum in the $3,000 range, much more than a payday lender can offer. Doing the math with a $3,000 loan, at 9.5% interest, for 3 years will have a monthly payment of about $96.10, which makes the total payment to the bank $3459.60. Not too bad if you ask me!

Getting the loan from a payday lender will give us an entirely different set of numbers. Going off of the information on a direct lender’s site that I will not name, they offer installment loans that range from $250 to $800, with an APR of 360%, with the loan to be repaid over 12 biweekly payments. Now doing the math here with an $800 loan we get 12 biweekly payments of $139.71, and a total payment of $1697.13. You’re going to end up paying more than the amount you borrowed in interest! Do some quick math and figure out what your life will be like with $140 missing from your next 12 paychecks before you decide on these loans.

The problem now becomes that many people simply cannot get a loan from the bank, which is why so many people turn to installment loan lenders in the first place.

What Does It Take To Get A Payday Installment Loan?

To be honest, not much! The requirements are almost the same as a normal payday loan. You need to have steady employment, meet the lender’s monthly income requirement, and have a checking account that is in good standing. Some lenders are going to check your credit, but in most cases they are doing so to see how much you currently have in outstanding collections, rather than your credit score.

These lax requirements are the reason that many people turn to installment loans. They are almost TOO easy to get, which leads some to apply without checking out all of their other, more affordable options.

Are There Any Affordable Alternatives To Installment Loans?

If you’ve read this far you may be turned off by the idea of these loans, that’s fine, there are alternatives out there!

Many banks are getting hip to the idea of short term lending, which usually ends up much more affordable than using a payday or installment loan. Take Wells Fargo for example, they offer something to their customers called a direct deposit advance. This works exactly like an online payday loan, but it happens completely within the bank and costs a hell of a lot less. Rates for these are $1.50 per $20 borrowed, or $7.50 per $100. To compare, average payday loans charge $17-30 per $100 borrowed.

For something with longer terms you can look into personal loans from your bank or local credit union. These are going to require that you have a decent credit score, but they will be much more flexible in both your terms and amount you can borrow. Fortunately, banks have gotten much faster over the last few years, and can rival payday loans in the time it takes for you to get paid. Assuming you’re approved, funds can be in your bank account by as soon as the next business day.

Which Loans To Avoid If You’re Trying To Save Money

There are lots of fast loans out there, and most of them are ridiculously expensive. Title loans are a common option that get too many people in trouble. Rather than go much further into these, I’ll share a quote from Americans For Fairness In Lending:

The typical car title loan has an annual interest rate of 300% or more.
In Oregon, 19% of title loans that were paid off in May 2002 had been renewed six times prior to payoff.
The Missouri Auditor found that, on average, car title lenders make 3.5 times more renewal loans than new loans each month.
Over half of the states ban high-priced car title lending, but in states where it is legal the industry is growing at an alarming rate.

It’s pretty scary stuff!

Pawn shops are also a common way to get money if you have valuable stuff laying around your house. There is less risk here if you don’t plan on getting whatever you pawn back, but if you do the rates are among the highest in the industry. Loan terms are generally a few months, but expect the lender to charge you the maximum interest they legally are allowed to do.

Borrowing Money Is Never Fun

Once you get the whole picture, payday installment loans probably aren’t a good idea to use. However, knowing exactly what to expect may help you get the loan from a payday lender and use it safely. Whatever you do, please use caution and responsibility with your loan to make sure that you don’t end up with a mountain of debt in front of you.

What To Do When You Need Money Fast For Rent

theempire — Mon, 10 Oct 2011 23:56:13 +0000

When you need money fast for rent your back is truly against the wall. Either you need to come up with some cash or get kicked out of your house. I know it probably won’t make you feel better, but I’ve been there plenty of times as well, so in this post I want to offer as much help as I can. We’ll cover everything from borrowing money to earning it.

Rather than dive into a full blown essay on the different ways to get cash fast, I’ll use this as a resource to other parts of the site that cover each topic in more detail. This way you can bounce around as needed very quickly.

Different Types Of Fast Cash Loans

The amount of money you need and your job situation will determine which route you take here.

If you have a steady job, a checking account, and don’t need more than a thousand bucks, check out our Ultimate Guide To Payday Loans. There you will find everything from how to save money on the loan to how to prevent getting ripped off.

Should you meet those same requirements above and need more cash, check out our page on installment loans. These are very similar to payday loans, except you’re able to borrow more cash and have a longer time to pay it back.

For those that have a paid off car and are willing to use it as the loan’s collateral, check out the post on title loans. These are secured loans, and if you have a nice ride you might be able to get a very large loan. The biggest risk is that if you don’t pay it back the lender is going to repossess your car.

We usually don’t recommend borrowing from a family member unless you absolutely have to. I would rather wreck my credit score than my relationship with someone who is close to me!

What About Earning Money?

If you have some stuff laying around your house that could be worth some money and are looking to get rid of it, check out our post on pawn shops. There’s a lot of good stuff in there, especially on how to figure out what a pawn shop will buy.

A couple of years ago we wrote a post called 8 Easy Ways To Make Fast Cash. It’s pretty thorough and covers a lot of things that most people don’t normally think of. You might not be able to make enough to pay rent, but it will definitely put some extra coin in your pocket.

How To Make Sure This Doesn’t Happen Again

I know right now you probably don’t give a damn about preventing this from happening again, you just want to make sure you have a roof over your head. Bookmark this post and come back once this mess has passed!

Being broke allows you to take a hard look at your finances. Nobody cares about it when things are going good, so take some time now and figure out where things are going wrong. The obvious problem is that more money is going out than is coming in. This means you can make more, spend less, or (preferably) both.

I could try and list some ways to save money, but this article from the site Dumb Little Man has done it way better than I ever could.

Making more money can happen in a lot of ways. The link a few paragraphs above about making fast cash has some good ideas in it. If you don’t want to take the time to do that kind of stuff maybe get a second job or work OT at your current gig? Making money is all about being resourceful, and there are a million ways to do it.

What You Can Do To Get A $1500 Loan Today, Or Maybe Tomorrow

theempire — Mon, 10 Oct 2011 22:49:49 +0000

There are a couple of ways to go about getting a $1500 loan today, and the route that you choose really depends on what your credit score is like. Due to the large amount that you need, payday loans are pretty much out of the question. Most states simply won’t let you borrow that much from a payday lender at any time, and the states that do allow this will require you to get loans from multiple companies which is just way too risky to recommend.

$1500 Loans For People With Bad Credit

Like I said above, payday loans are pretty much out of the question, but that doesn’t mean that payday lenders can be helpful here. Many of them will offer something called an installment loan that is essentially a large payday loan that can be paid back over several months. Not every company is going to offer these, but with a few phone calls you will likely find someone who can help. If you truly need the cash today, go to your local lender, do not apply online.

If you truly need the cash today, go to your local lender, do not apply online. Online lenders usually can’t get the cash to you the same day

Online lenders usually can’t get the cash to you the same day, instead they deposit it into your checking account which likely won’t show up in your account until the next business day.

If you’re the patient type and can wait until the next business day you can apply online. Lenders like 100 Day Loans and Great Plains Lending offer online installment loans that are extremely easy to qualify for.

Keep in mind that many of the requirements for installment loans are the same as payday loans. You need to have a steady job, a checking account, and meet the lender’s income requirements. Since these loans are larger the lender may check your credit, but don’t fret, they lend to people with bad credit.

An alternative to all of this is title loans. These are secured loans that use your paid off car as the loan’s collateral. Title loan lenders are very fast, but you do have to take your car to them to get it inspected and appraised. Borrowing $1500 or more is very easy, and most loans start around this amount and go up. The more your ride is worth, the more you’re going to be able to borrow. There is also more flexibility in payment schedules with these lenders. It’s likely that they will offer you at least a few months to pay it back, but some will go all the way up to several years.

$1500 Loans With Good To Decent Credit

If you have at least a decent credit score, jump in your car, public transit, bike, moped or whatever and head down to your local bank or credit union. Banks don’t normally like to make small loans, but most will go to $1500. You’re going to get the best rates here, but it’s probably not the fastest route to take. If you need cash today and choose this route you may be put off by the fact that they’re going to take at least a business day to process everything. Just remember that the incredible amount of money you’re going to save in interest offsets the extra day of waiting!

Any Alternatives?

There are always alternatives! Do you have something laying around your house that’s valuable? Go pawn it and get all of the cash that you need. This can be things like jewelry, antiques, or your old baseball card collection. At the pawn shop you’ll be offered a few options. You can sell the item to them or pawn it. Pawning is where you give them your stuff and they give you a loan based on its value, and in a few months you pay the loan off and get your stuff back.

When you need fast cash it’s important to weigh out all of your options before making a decision. I’ve known many people who seriously regretted their decision when it comes to some types of loans, only to learn that they really didn’t need the money in the first place. Before you apply for anything sit down, take a deep breath, clear your mind, and make an honest decision about all of this.

How To Get $1500 Loans For People With Bad Credit

theempire — Fri, 07 Oct 2011 20:04:07 +0000

Trying to get $1500 loans for people with bad credit from your bank is damn near impossible, especially if you bank with a huge corporation (Wells Fargo, Bank of America, etc.). With smaller banks or credit unions your chances are a lot better, but still not that great. However, when you look to other, not so common lenders, things get a lot better. This post is going to cover a few of the ways that you can get the cash that you need, no matter what your credit score is like.

When you need a $1500 loan I strongly recommend you start at a bank or credit union, even if you have terrible credit. The odds are stacked against you, but the great interest rates that you can get there make it worth your time if you get approved. Compared to the other lenders we will discuss here you will save a serious amount of cash, as well as help rebuild your credit. It’s a long shot, but it’s still the best place to start.

They are much more expensive than a bank loan, but in some cases it may be your only option.

So what do you do if you can’t get a loan from your bank? It’s time to check out installment loans. These work like really large payday loan that offer you much more time to get the loan repaid. They are much more expensive than a bank loan, but in some cases it may be your only option.

Most of these are no credit check loans, meaning that the lender simply won’t care what your credit score is. The things that they will check are how long you’ve been at your current job, how much you make each month, if you’ve recently filed for bankruptcy, and how often you overdraft your checking account.

A problem that you may run in to when looking around for installment loans is that the lender may not offer you $1500. For example, Great Plains Lending will offer just about anyone a $500 loan with installment payments, which may or may not work for you, but it’s important to know to expect this. Plus, taking out several loans to meet your needs is very risky to do!

$1500 loans for people with bad credit are definitely out there as long as you can meet the installment loan lender’s requirements. What’s important to keep in mind is that patience is extremely important here. Jumping on the first loan that is offered to you can lead to either not getting enough money or accepting terms that screw you over in the long run.

Why You’re Never Going To Find An Instant Loan

theempire — Thu, 06 Oct 2011 20:25:05 +0000

Despite the best marketing tactics by payday loan lenders, you’re never going to get an instant loan. Ever. I’m sorry to say it, but it just won’t happen, unless these lenders stretch the idea of “instant” to mean a lot longer! These loans are extremely fast, but the money won’t just magically show up in your bank account! In this post I want to show you how instant loans really work so that you can understand what you’re getting in to.

While online and local payday loans are similar, the way that you get paid and how you pay it back are very different, so in this post we’ll break it down this way.

Applying for an online payday loan is extremely fast and easy. You fill out an application on the lender’s website and wait a few minutes (or up to an hour depending on how they process it) to hear whether or not you’ve been approved. This is the “instant” part. From there, things grind to a halt. Assuming you’ve been approved the lender then has to transfer the funds into your checking account. In a perfect world this would happen quickly, but it doesn’t. Banks don’t like to have funds flowing in and out freely, so they put a hold on the transfer until they get to approving it. The hold is very similar to depositing a check into the ATM and they only make a small portion of the check available to you right away. This approval will generally happen overnight, making the funds available to you the next business day.

Not so instant, right?

As far as local loans go, they are much faster. This is due to the lender being able to write you a check right in their office. You will fill out an application in the office, wait a bit for it to be approved, and then get paid. Most lenders can get all of this done in just a few hours.

One thing that slows down a lot of people with local loans is that they don’t bring all of their paperwork with them when they apply. To prevent this from happening, simply give the lender a call before you leave your house and ask what you need to bring with you.

If you have the time to wait for an online payday loan, the convenience definitely makes it worth it, just don’t expect the payday loan fairy to waive her wand and make the money available to you right away. However, if time is seriously pressing get in your car and head down to your local lender.

While an instant loan is a myth, if you set your expectations accordingly you can get all of the cash you need without getting burned!

I Need 2000 Dollars Fast! Will Payday Loans Affect My Credit Score

Admin — Sun, 02 Oct 2011 13:45:11 +0000

Payday loans can be very helpful for people who are in between paychecks but need money right away. It is also very helpful if there are extra expenses which you were not able to include in the budget. Payday loans are very easy to get. There is no credit check required so even if you have bad credit, you will be able to qualify for it as long as you are a citizen of the United States, at least 18 years of age with a job that pays no less than $1,000 and you have an active savings or checking account. If you are saying “I need 2000 dollars fast”, payday loans may be the answer you are looking for.

A lot of people are drawn to payday loans because of their accessibility. However, most of the people who take out payday loans have problems with payments. Payday loans have to be paid in just 14 days or when you receive your very next paycheck, there are also special types of payday loans which are to be paid in 30 days. If they cannot make payments on time, they opt for a rollover. When you rollover, you are extending the term of the loan and this means additional costs. The amount you pay for the rollover will not be subtracted from the principal. People who missed payments or have late payments are asking if a payday loan will affect their credit score. Are payday loans worth it if you really need money?

Payday loans, just like other loans, can affect your credit score negatively if you do not pay them on time. Applying for the loan does not have any impact on your score but you have to keep in mind that credit score will plummet if you do not repay on time. You have to be mindful of your obligations if you want to retain a good credit score.

How To Make Sure You’ll Get A Loan When You Need It

Admin — Thu, 29 Sep 2011 20:06:04 +0000

A good credit score is important because it can determine whether or not you get a loan, what interest rate your auto loan will come with, or even whether or not you will be hired for a job. As a result, experts stress the importance of checking the accuracy of your credit report and your credit score numbers at least once a year.

Being denied a credit application can be embarrassing. Plus, just think about the stress of being denied credit when you need it. If you want to avoid the embarrassment and stress of denied credit applications just when you need it most, just do the credit report check at least once a year to find out where exactly you are on the credit score scale, as well as to make sure that all the information is correct, and to verify that the report does not contain inaccuracies or grave errors.

If you do find an error, you will need to work on clearing it up. How?

It may be a good idea to first write a letter to the creditor whose statements you believe are wrong. Hopefully, the creditor admits the mistake and sends corrected information to the agency.

If that doesn’t happen, then you’ll need to send a dispute to the agency. You will need to make a copy of your credit report and mark every item that is incorrect. Write a dispute letter to the reporting agency explaining in detail what errors you found and request an investigation of your case. Send any supporting documents that you can find as evidence (you will find the address on the report). Also, remember to use certified mail and request return receipt , so you can prove the letter was delivered.

If you find out that your credit score is low for a good reason, e.g. you were late with mortgage payments, or perhaps you missed an auto loan payment, then you will have time to work on raising your credit score by improving your money management skills without resorting to the dubious practice of using credit repair kits or other credit repair services, that can really put you in even deeper trouble. Listen to my advice and never trust the claims made by various credit repair companies and their ads.

If you are behind with your payments because of financial hardship, contact the lender as soon as you can to discuss the possibility of arranging a different payments schedule that will help you pay your debt. Most lenders will work with you, as they want to recover they money.

If the low credit score is due to your negligence, however, keep in mind that it will take a lot of effort from your part to redeem yourself in the eyes of your creditors and credit agencies. In some cases it will take several months until the credit score will increase to a positive value again.

What to Consider Before Taking Out A School Loan

Admin — Thu, 29 Sep 2011 19:54:05 +0000

A school loan can be a great way for a student to pay for college now and then when they have a job pay back the loan at their own pace. The only problem is that sometimes the student who is fresh out of college does not find a job or high paying job and thus paying back a loan is a hard plan to follow. If you were fortunate your loan was not collecting interest while in school, but now that you have graduated interest can be collected, so what should you do?

1.Work During School

No matter what kind of work you choose to do, working is a good plan if you have a loan to pay back, and if you can work during school then you will have a jump start. Granted we would all love to go to college, stay in a dorm and live care free for a few years while earning a degree, but that dream is hardly obtainable for most people. Thus if you can get by with working a few more hours at the local grocery store or StorageMart each week to help save for that loan you took out then do it.

2. Check Your Loan

There are basically two different kinds of school loans, the one that does not collect interest until you are out of school, and the one that does collect interest while you are in school. If you can then obviously the loan that does not collects interest until graduation or six months after would be the best plan. But even a loan that does collects interest in most cases will be under inflation and thus not to much of a worry for a student, just make sure you have a plan for paying it off.

3. Forget The Loan, Set Up A Payment Plan

Many schools such as community colleges have payment plans that can be set up for students to pay off their school debts. The payment is typically during the current semester and will break up the once horrible lump sum into 4 to 5 payments over the semester. This way you do not have to be out a large amount of money at one time, but you can pay it off over a few months period. Also community college in comparison to a four year university is a good way to save money at least for your first two years of general education.

4. Make a Decision

Sometimes if you really think about it you may not need college, I know this is a hard pill to swallow. But many times people will go to college fresh out of high school not knowing what they want to do, just because everyone else is doing it. Take a year or two off, asides if you can not get any grants then it does not matter when you go to school right now, work a little and find out if college is for you before racking up a huge debt.

Credit Score and Your Reputation

Admin — Wed, 28 Sep 2011 23:18:07 +0000

What do most people think affects their reputation? Many people know that the way they act – things like their integrity, generosity, and sense of humor all have an effect on the way that they are perceived by everyone around them. Many people work hard to make sure that they build up a good reputation with their friends, neighbors and coworkers. However, what is one thing that many people do not realize has a huge effect on their reputation? Many people do not believe that their credit score has anything to do with their personal reputation, however as many people come to realize the way that you handle your money has a huge effect on the way that you are perceived.

Although most aspects of your reputation are just talked about by your friends and acquaintances, your financial reputation is made public for anyone to view. Your financial reputation, like your online reputation, can have a major effect on your life as it is public information that anyone can find out about. Practicing good online reputation management can make a huge difference in your professional life. Not everyone is technically knowledgeable enough to be able to practice online reputation management. If this is the case and you are worried about how your online reputation is affecting your personal or professional life, you can always hire a reputation management services company to take care of all of that for you. No longer will you have to worry about your online reputation and how it will affect you in your life. You can simply tell them what you want your online reputation to be and they will work tirelessly until you can comfortable do a web search for your name and find the information that you want others to see. That is what it means to have a sound online reputation.