The Hidden Costs of Cash Advance Loans

Knowing the Costs of a Cash Advance Loan

If you are reading this, you no doubt know what its like to live from one paycheck to the next.

Some people plan their finances very carefully and make sure they spend strictly within their means. They will never splurge on a brand new jewelry set, new clothes or a swanky new car if they knew it could possibly put them in the red. However, sometimes even hard working people can be caught by surprise and thrown into a financial crunch by some exigency such as an emergency car repair or doctor’s high bill. If you find yourself in this sort of situation, a payday cash advance loan might just be the extra boost you need to get through the immediate money crunch.

Before you apply for a payday loan, you should first make sure you really need it. In case of an absolute emergency situation, such as unexpected car repairs or a higher than usual utility bill or high medical bills; taking a loan may be completely unavoidable. However, you should refrain from taking a loan, if you have the slightest suspicion that you may not be to repay the loan on time. You’d only be piling on more debt on top of the debt that already exists.

Researching cash advance loan companies

It is wise to research cash advance loan companies before doing business with them. A simple Internet search will provide you with links to quite a few companies who each have different requirements and terms. By reading all of the fine print and comparing what several companies offer, you will be in a better position to choose the best cash advance lender for you and your individual situation.

The costs associated with a cash advance loan can vary from company to company and even from state to state. The laws in California for instance may dictate certain limitations on the fees that their companies are allowed to charge. The same rules may or may not be in force in Florida or North Carolina.

One thing that you should be aware of is that as a borrower, you have certain rights from the beginning. According to the Truth in Lending Act of 1968, all financial lenders must disclose up front any and all fees associated with the loan they are offering and must offer that disclosure to the borrower in writing. This disclosure also includes informing you of the annual percentage rate (APR) of the loan (or in simpler terms, how much the loan would cost you on an annual basis).

The APR of an average loan that is acquired through a traditional lender is somewhere in the neighborhood of 7%. Based on recent surveys that have showed the average payday cash advance loan will cost the borrower about twenty five dollars ($25) per hundred dollars borrowed, a payday loan carries an APR of about 650%. How do you arrive at such a high number? It’s simple, really. Let’s say for example that ABC payday lender charges $25 for you to borrow $100 and that you must pay back the loan plus the fee in two weeks time. If you do the math, the APR of this sample loan would be 651.79%. Of course as was mentioned previously, not all cash advance loan companies charge the same amount. The Truth in Lending Statement will provide you with all of the details about any fees and charges as well as show you what the annual percentage rate is for your particular loan.

Another key factor to keep in mind is the repayment period for the loan. Typically the loan will need to be paid in full within two weeks. If you are able to pay off the loan and the associated fee in that period of time, there is nothing more for you to worry about. If however you are like many people who avail themselves of this type of service you are unable to fulfill your obligation in the time frame outlined in your original agreement, the majority of payday cash advance lenders will allow you to extend the term of the contract. While this can be a tempting offer that enables you to put off thinking about your financial problems for another couple of weeks, you need to be aware that extending the length of your loan will add to the fees that you are responsible for. Most often, the fee for such a term extension is higher than the original fee.

Before you enter this or any other such contract, do your homework. Don’t do what we are all guilty of from time to time and ignore the fine print of your contract. Read and understand what you are getting yourself into or you might just end up paying the price later!

Title Loans – The Best Loan Alternative In Case of a Financial Emergency

Another financial setback has just occurred unexpectedly and it is becoming exceedingly difficult to keep up with all the expenses that are cropping up at the most inappropriate time of the month. You rush to some of your friends and family members only to come back empty handed, yet the financial hurdle must be tackled quickly. So, where else do you rush to, you ask yourself. This is a sort of a financial dilemma that occurs to most of us at one time in our lives and it demands an immediate solution. Luckily the financial market has come up with a solution for this sort of a problem in the name of title loans. Furthermore, it doesn’t matter about your credit worthiness, the loan will be availed as long as you have a valid car title.

Title loans provide the borrower with the much needed funds for them to get out of the difficult financial problems that have just compromised their financial world. There are numerous title loans that can be availed by the lenders to the borrower. In fact, these loans are similar to payday loans in that they are offered for a short duration of time. The duration range is 14 days with an option of extending the repayment to a month. The only difference between these loans and payday loans, is that, the applicant must provide proof that there are the owners of the car they are pledging as the collateral.

The common features about these types of loans are as follows:

* The applicant keeps driving irrespective of having pledged their vehicle as the security for securing the loan. This is as long as the borrower doesn’t default on their loan repayments, otherwise the car can be repossessed by the lender to cover the loan costs.
* Title loans approval is quick and easy. The fact is, all you have to do is to drive to the nearest financial office with the title papers and a proof of residence for the loan to be processed. Furthermore you can fax in the required documents by the use of your fax machine for the loan to be approved. Within hours you will receive 50% of the retail value of your car.
* The vehicle title is your credit meaning that even if your credit score is poor, you will still be advanced with the required loan amounts.
* The loans are short term meaning their rate of interest is higher than would have been expected in long term loans.
* No credit check is performed on the borrower when applying for these loans, thus their approval is instant.

There many uses that a title loan can fulfill, for example, the loan amounts can be used for payment of unexpected medical bills, pay for various grocery bills, pay out immediate utility bills, pay out other loans thus mending your credit score and other such purposes as the borrowers deems important.

Timely payments of the advanced amounts ensure that your poor credit score is mended at the same time saving your car from being reposed. This also ensures that any other time you are in need of some quick money, the lender will always be ready to do business with you.

One Hour Payday Loans No Faxing – Tips to Help You Find the Fastest Cash Advance

There is no shortage of lenders offering payday loans in the US and in the UK, and with developments on the internet over recent years, there are many lenders who offer a fully online service that can be extremely fast and simple. The best can have money in your bank within one hour of you submitting an online application form.

Not all payday loans can be obtained this quickly and there are several things to look out for to help you find the fastest and most straightforward lenders. It is always best to go for direct payday lenders as this is a more streamlined process than dealing with a third party broker who then pass your details onto various lenders. You should also try to find a company that do not carry out a credit check, as this is another step that can be missed out and speed up the process.

Payday lenders often do not do credit checks, which is why they are an affective form of borrowing money for people who have bad credit. They do not need to check your credit rating because there are other factors which are more important for them to know about in terms of assessing the risk of lending to you. As payday loans are for small amounts and short periods of time, all they need to know is that you have a source of income which will put enough money in the bank by the repayment date to cover the loan.

It used to be the case that you had to fax through various documents before you could be approved, but this is easier to avoid with the increase in companies that operate wholly online. You need to start by selecting companies that do not ask for faxing of documents as part of their process, but there are still some circumstances when even these might ask you for documentary evidence. You can reduce the likelihood of this happening by making sure you complete the application form fully and accurately in the first place. The more you can give them up front, the less likely they are to need anything else.

Even if lenders promise to get cash to you within hours of applying, you should check what hours their service actually operates. While a website will be available 24 hours a day, the rapid service may only be available while there is someone in the office hours from Monday to Friday. There are companies who are genuinely round the clock, but you need to check.

Another factor that can slow things down for US citizens is finding a company that seem to tick all the boxes, only to find at the last moment that they do not offer loans in the state you live in. You can avoid this by checking this first, or selecting a lender that covers all states where payday lending is permitted. This is not an issue in the UK as all online lenders operate nationwide.

Your main concern, however, should be to find a reputable and reliable payday lender, because there are many companies operating who unfortunately set out to exploit people who need to borrow money. While fees for payday loans will vary, some companies will add enormous penalty charges to any late payments, which is a practice that can lead to rapidly spiralling debts that become almost impossible to get out of.

For all these reasons, it is important to start by following recommendations for payday lenders that are well established and reputable, as well as being fast and efficient. When you have a manageable shortlist of a few good lenders, you can then compare to see which suits you best.