Payday Loan – Why Should You Go For It?

Payday loans are all the rage in the here and now. While most people don’t favor this type of loan, the reality is different. Other names of payday loan include quick cash loan, check advance loan, and so on. Actually, it’s a type of loan where you can get cash right away. However, it also comes with a higher rate of interest. In return, you get speed and flexibility. Given below are some good reasons why you should opt for this type of loan in your time of need.

Get Cash Quickly

Suppose, you have an emergency and you need some quick cash. Who will you ask for it? You may or may not be able to find someone to give you the cash you need. You may think that your bank can help you. Well, to be honest, the application process of a bank is so complicated is that it will take them ages to complete the verification process and then grant you a loan. And when the loan will be approved, you will be in a bigger trouble. So, heading to the bank won’t be a good option. In this situation, payday loan will come to your help.

Payday Loan May Be Cost-effective

If you have a debt to pay back, you may think of getting a short-term loan. If, for some reason, you are unable to pay back the installment, you will have to bear a greater cost. What can happen in worse situation? Well, you may lose your car if the payment is not made on time. Or in case of a mortgage payment, you may lose your house. Think of it this way: the cost of losing your home or car would be much higher than getting a payday loan and paying a bit higher rate of interest. Therefore, getting this type of loan makes sense. After all, you don’t want to part with your beloved house or car at any cost.

It’s Just Business

Of course, the payday loan will cost you in the end, but you won’t have to go through all the emotional trauma caused by your family or friends. In case of a payday loan provider, it will be just business and there will be no emotions involved. On the other hand, if you borrow from your friends or family, you relationship will be at stake in case you are unable to pay back the loan on time. And you don’t want to break up with your loved ones. So, if you borrow from a loan provider, no one from your loved ones will come to know about it. Plus, if you fail to pay back the loan, you will only have to pay a higher interest and your relationship won’t be at stake in any way.

No Credit Check

When you go to a bank to get a loan, you have to go through a complicated application process as the bank has to do the require credit check. On the other hand, in case of a payday loan, there is no credit check involved. Another good thing is that this loan won’t be part of your credit history if you pay it back on time. It will have an impact on your credit record if you don’t pay back the loan on time. So, you get the loan and no one comes to know about it. It’s a win-win situation.

5 Benefits That Makes Payday Loans The Best

Dealing with a financial emergency is easy with a payday loan. This type of loan helps you deal with an unexpected situation, such as a medical emergency or the payment of overdue bills. You can pay back the loan with your next check. So, you will have this burden for no more than a few weeks. Given below are 5 benefits of a payday loan.

1. Speed

When provided required information, most lenders will grant you the loan almost instantly. The procedure is quick and easy. Unlike the traditional loan procedures, you won’t need to fill in a bundle of forums. The process will take a few hours and the funds will be deposited in your bank account on the same day or the next day in some cases. In other words, you won’t have to wait in the queue for your application get approved and the loan granted. The paper work will take a few hours and the money will be in your hands.

2. Convenience

Since the procedure is carried out online, you won’t need to see the loan officer in time. The application will be sent online and you will get the credit in the form of cash. You can use the cash on anything you want. On the other hand, with the credit card, you can only pay for a service or product.

In case of a payday loan, you can use the cash to buy goods or pay your bills. On the other side, other traditional loans are granted for a specific purpose, such as for buying a car or home.

3. Easy Requirements

Since a payday loan requires you to meet a couple of fundamental requirements, the access to the service will be a lot easier. One major requirement is that you have to have a stable source of income. If your income is stable and verifiable, you are good to go. Actually, the lender needs an assurance that you earn enough to pay back the loan.

On the other hand, conventional loans require collateral. Another requirement that you need to meet is that you must have an active checking account and you must be a registered resident of your state. Aside from this, you have to be over 18 years of age to apply for the loan.

4. Qualifying for a Higher Amount

Some payday lenders put limits on the amount that they can lend. In other words, you can apply for any amount as long as it is within the amount of salary you get each month.

Usually, the amount of loan that can be granted is set by the state. During the application, you will know how much you can borrow. If you pay the loan back in time, you can develop a good relationship with your loan provider and get a higher amount of loan the next time, which is a great plus point.

5. Credit Rating

Failing to pay back your loan means you will adversely affect your credit score. Besides, you can incur fines and penalties, which will add to the cost of the loan. On the other hand, a payday loan helps you deal with your financial emergencies in a quick and easy way. Even if you have a bad credit rating, you can get a loan within hours. Since you pay back these loans within a month or so, your credit rating won’t get affected and you won’t have to face legal consequences.

Is It Possible To Get A Payday Loan Refund?

Payday loans offer quick financial fixes to individuals who do not want to go through long processes of getting loans. They are quickly processed and therefore come in handy even in situations that seem urgent. However, if you are not careful with where you get these loans, you could end up being charged very high interest rates which can eventually put you into more debt.

In recent times there have been an increase in the number of people complaining about the payday loans. A good number of people on realizing irregularities are taking action to get compensation. It may seem impossible, but there are a number of ways you can qualify to make a complaint and actually enjoy payday loan refunds.

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.

9 Things to Consider Before Getting A Payday Loan

Dealing with the financial concerns is not an easy task. You need help when you know that everything depends on you. If you are considering payday loans, read on to know what you should consider to make the right decision.

Payback Time

Remember: the payback time for a payday loan is around two weeks. If you fail to pay back the loan on time, you don’t need to worry as you can contact companies that allow you to roll over the loan. You may have to pay some low fees but that won’t be a big problem.

Research Your Options

Going with the first lender you get in touch with is not a good idea. You will find good rates if you check out different lenders. It may take you some time but will save you a lot on the fees later on. Nowadays, you can compare lenders on the Internet.

Payday Loan

While applying for a payday loan, make sure you keep scammers at arm’s length. For this, you can contact Better Business Bureau. Aside from this, you should borrow as much as you need. By keeping the amount small, you will find it easier to payback the amount later on.

Make Sure You Will Have Enough Funds

Make sure you will have enough funds in your bank account to payback your loan after a couple of weeks. Even if you fail to make the payments, the lender will try to collect the funds. Your bank will figure out the additional fees for making payment to the lender. As a result, it will become even harder for you to pay back the loan.

Consider Direct Deposits

Make sure you choose a lender that will use the direct deposit option only. With this option, the lender will deposit the funds directly into your bank account the following day. This way you won’t have to carry the cash in your pocket.

Cash Advance Loans

Make sure you use the cash advance loans only when you have no other option. If you have some financial problems, you can get in touch with a credit counselor in order to control your finances. In other words, you should consider taking a payday loan only if you have no other options left.

Comparison Shopping

When deciding to take a loan, make sure you take into account the comparison shopping as well. One provider may be offering a lower rate of interest than the other. This way you can get the best deal. What you need to do is keep looking for a better lender.

Don’t Borrow Too Much

You shouldn’t borrow too much. For instance, if you need only $2,000, don’t borrow $3,000. It may be a bit tempting to borrow more, but the interest rates will keeping going up as you borrow more. Therefore, figure out the amount very carefully or you may get into a huge trouble.

This Is A Serious Matter

Applying for a payday loan is a serious matter. If you take this decision without considering all your options, you may get into a serious problem. As a matter of fact, payday cash advances may not be for you if you know that you won’t have enough funds in your bank account a few weeks later. The principal, interest and the additional fees must be paid on time.

Long story short, if you really need money to deal with an emergency, you can consider other options, such as borrowing from a friend or relative. But you should never take out a payday loan unless you absolutely need it.

Some Top Advantages of a Merchant Cash Advance Loan

Small businesses often find themselves in a cash crunch. There are very few options in such instances. One can try to borrow money from friends or relatives but there is always a question mark. There are loan sharks but it is risky. There are other options for the immediate supply of cash without any collateral.

Merchant cash advance is the best solution for small businesses like hotels, restaurants, professionals, retailers and even small manufacturers. It is a straightforward deal and one is never beholden to friends or relatives. It is cash on demand, no questions asked. The process is relatively simple and there are minimum eligibility criteria making is the best source of funding for small business owners. There are inherent advantages and the cons are only a few. Consider the advantages of a merchant cash advance loan.

Fast approval, fast disbursal

If cash is needed urgently there is no better source than this. One only need to apply online, submit a request and then the process is taken forward. Applicants usually receive cash in their bank account within 4 days of making the request provided every other requirement is met.

Minimum paperwork

Unlike banks and other lending institutions that ask for a lot of documentation, this method of funding is the easiest when it comes to paper work. One needs to submit only the bank statement for the past six months, proof of ownership of business and proof of identity and residence. That’s that.

Best for people with bad credit

People with bad credit can find themselves in a jam with no one willing to even consider their request for temporary funds to overcome their difficulties. If they go down this road, it is a reprieve and they can really get back on their feet. More to the point, their credit rating can improve with assistance from the right lenders.

Best for businesses that wish to expand or launch campaigns

Traditional lenders may insist on a solid project report to show why borrower needs funds, how they will use it and how it will help them generate revenues. Small business owners rarely have the resources or wish to pay a chartered financial specialist to prepare such papers. Going this way helps them get their hands on cash that will help them expand the business, buy equipment, modernize, give their retail store a makeover or launch periodic campaigns to rope in customers.

No collateral

One of the finest advantages that borrowers like is that there is no need to submit any collateral or guarantee. Just their personal word is sufficient to help them get their hands on sorely needed cash.

Easy repayments

MCA repayments are usually tied as a percentage of the daily credit card sales. One can just as well opt for a fixed monthly repayment. In the former case, the repayment amount is low if sales are slow and higher if the sales are high. In any case, repayment extends over one year and by that time the borrower may have used the money wisely to increase revenues.

Cons

The only cons are that the factor rate is high ranging from 1.2 to 1.5 that translates to the interest rate of 20% to 50%. But then, a non-secured loan is always expensive. Another factor is that the business should have been in existence for at least a year or so with a minimum turnover of $ 10000. These are minor niggles

Payday Loans – The Benefits And Risks

Living on paycheck can present challenges, especially when instant cash is needed in situations that really can’t wait until the next pay date. Running out of cash is not uncommon, but when an emergency arises, you will need that boost and sometimes it can be hard to get. This is where payday loans come into the picture to rescue the situation. They are quick loans that offer short terms financial support until the next paycheck.

The payday loans come with varying repayment terms depending on the provider you settle for but the truth is that you are most likely to pay back in a as little as two weeks. They of course can be paid in installments and they do attract interest. The total amount you can enjoy from the loans can be determined by your salary and the financial situation you may be in. They have become very popular, but the least you can do before going for one are getting familiar with the benefits and the risks involved when taking them up.

Payday loan benefits

  • These loans come in handy in emergency financial situations and they are quite discreet. You do not have to worry about your close friends and family knowing about your financial crisis when you can easily access the payday loans discreetly.
  • The loans can be enjoyed with any collateral requirement. All you need to do is fill a simple application form for an evaluation and you qualify for a reasonable short term loan. You can actually enjoy no credit check payday loans where the lender does not rely on your credit history to give you the financial assistance you need. As long as you have a salary to repay the loan, you qualify for it.
  • The loan processing is quick and easy so you can access the money when you need it most. You do not have to worry about long loan processing processes when dealing with the short term loans. Sometimes it may only take a few hours for your application to be approved and for the funds to be channeled to you. This is something you really can’t say with bank loans.

Payday loan risks

  • The loans do not offer ideal cover for long term financial issues. They are most suitable for urgent fund shortfalls for working people and relying on them continuously may mean more financial trouble for some.
  • Since the loans do not require any collateral or a good credit history, they tend to come with very high interest rates. If you are not very careful when choosing a lender, you could end up with a loan that is just too challenging to repay.
  • They can affect credit score when you are late on a payment and incur penalties. Some lenders may not require a clean credit history, but these are loans and failing to adhere to repayment can impact your credit score negatively. It is something that can affect access to funding even from banks and other institutions in the long run.

When looking for a payday loan, it is important to first evaluate the financial crisis you are in to determine whether the short term loan is what you really need to fix it. Sometimes you may need some serious expense changes to fix your need for funding. It is most advisable that you stick to the loans only when it is absolutely necessary to get one and when it is the only reasonable financial solution at that present moment. Take time to compare lenders to get yourself better loan and repayment terms that suit your financial status.

When And How To Make Payday Claims

Payday loans have without doubt become very popular especially because they are easy and quick to get. Whereas they are short term loans that are supposed to save individuals from difficult financial situations that can’t wait, they do attract a very high interest rates. With so many lenders now offering the loans, if you are not careful with the loans you could end up with debts that spiral out of control. A good number of people find themselves in more financial difficulties when they get hooked to the payday loans.

Luckily, if you feel your payday loan is not yielding the kind of results you expected because of one issue of another, it is possible to apply for a refund. The refunds are usually based on mis-selling by the lender or the payday loan providers and they can work on saving you from an agonizing financial situation. You can claim a refund if:

  • You feel the payday loan costs are ever increasing and sending you into more debt, thus making living a struggle for you. If you can hardly maintain your household bills and daily expenses because of repayments then you can claim for refund.
  • Repayments are automatically deducted from your credit card or bank account by your lender leaving you with insufficient funds to survive on.
  • You qualified for the payday loan even though you were suffering ill health or while you were on low incomes and benefits. All lenders are required to go through an evaluation process wisely to ensure that you can actually repay the loan as indicated.
  • The payday loan proved unaffordable and you really cannot repay without being subjected to undue difficulties. Whereas the loans come with high interests, some lenders charge hefty rates and attach other fees to the loans making them quite unaffordable in some circumstances.
  • The lender encouraged you rolling over the loan, thus resulting in more fees on your side. The lending terms should be clear for you and no lender should offer solutions just so they can reap you off in the end when you thought they were actually helping you out.
  • You have to borrow more funds to pay important bills like utility bills, rent and council tax just because you are servicing a payday loan.

Making the complaint

First, you would need to write a letter to the lender as a way of trying to sort out the issues at hand. Let the lender know where they have failed as per best practice charter and the set rules for such loans and express how you wish to resolve the problem. You can review repayments plans so you are able to pay what you can afford at convenient times.

If the lender fails to respond or sort out the problem as requested, you can take the complaint further to the financial ombudsman service. The office will look into the complaint and offer advice to sort it out and final decisions made binds the lender.

In case you still are not satisfied with the decision by the ombudsman service, you can take lender to court. It however should be your very last resort when making a claim because court cases can be long and tedious and they also come with charges. It helps to seek professional advice first before making it a court case.

There are very good claims management companies that can help you get the compensation you want without any court proceedings. If you decide to settle for such a provider, ensure that they have impressive success rates and their services are affordable and reasonable enough for you.

5 Tips To Get The Best Payday Loan

In tough circumstances, it’s difficult to make both ends meet for most people. As a matter of fact, unfavorable economic climate forces many people to take a loan. If your current job doesn’t pay you enough, we suggest that you give a go to a payday loan. If you don’t know whether you should reduce your expenses or apply for a payday loan, we suggest that you check the tips given below. These tips may help you make a wise decision based on your circumstances.

Consider your needs

First of all, make sure you know how much money can meet your needs. While it is tempting to apply for an amount that is a lot higher than what you currently need, you should never go this route. The reason is that the high rate of interest will kill you down the road. So, if you want to be on the safe side, you should only apply for a loan that will jus meet your needs. Don’t be greedy. Some people don’t need as much money as they borrow. As a result, they find it really hard to repay the loan. Paying the higher rate of interest becomes a headache for them and their life becomes a hell. So, always go for what you need, not what you want.

Repayment method

Now, this factor is the most important. When applying for a loan, make sure you choose the best repayment method based on your circumstances. For instance, you can give a post dated check to your lender so he could get the payment on a certain date. Or your lender may ask you to give you the account number of your checking account. In this case, the lender will just deduct the payment amount from that account. Based on your needs, make sure you ask the lender to use the right payment method.

Extension

Due to one reason or the other, you may fail to repay the loan on the due date. In this case, you can ask for an extension. Your lender may give you a 48-hour extension based on your history. However, keep in mind that you will have to pay the fees for the extension.

It’s important that you make all the payments until you have gotten rid of the loan. In case of late payments, you will have to face penalties, which you don’t want at any cost.

Valuable items

If you want to enjoy a lower rate of interest, you can apply for a loan with a valuable item, such as jewelry. Usually, a secured loan will save you a lot of money because of the lower interest rate. So, if you can, take something valuable with you to the lender.

Credit history

As far as payday loans are concerned, your credit history plays a great role. Even if your credit history is bad, you can apply for a loan but the rate of interest will be a lot higher. On the other hand, if you have good credit rating, the lender may offer lower rate of interest and better repayment options. Therefore, we suggest that you keep a good credit history in order to prevent higher rate of interest. And for this paying the loan back on time is the way to go.

So, if you are thinking about getting a payday loan, we suggest that you consider your circumstances and use these tips to be on the safe side. Keep in mind that payday loans are not for everyone. You should get this loan only if you are sure that you will be able to pay it back on the due date.

5 Advantages of Payday Loans

If you have an emergency and you need money, payday loans are probably your best option. Unlike other types of credit, this type of loans offers a lot of advantages. Given below are a few advantages that can help you get a clear idea of the importance of payday loans. Read on to know some of the most prominent advantages.

1. Speed

You can get a payday loan in a few hours unlike other types of loan. For instance, once you have made your mind to get a loan, all you have to do is apply online or walk into the office of the provider for applying. And within an hour or so, you will get the cash. With other types of credit, you can’t get access to the money in a short period. So, speed is one of the top advantages of this type of credit. You can get the funds in a few hours. There is no waiting period involved at all.

2. No Strict Qualifications

Payday loans are easy to qualify for. Even if you have a bad credit score, you can qualify. All you need to do is let the loan provider know that you have a job and that you make enough money each month to pay back the loan. If you meet these qualifications, the provider will grant the loan. On the other hand, other types of loan require a lot of time consuming background checks before you get access to the loan amount. In some cases, the background checks take weeks to complete. As a result, you have to wait for a few weeks before getting the funds in your account.

3. No Cash Advance Limits

If you can get a payday loan, what you can do is get cash quickly that you can spend on whatever you want. On the other hand, with a credit card, the bank won’t allow you to get the cash and spend it on whatever you want. You can use the credit card online; however, if you get the cash, you will be charged a very high rate of interest. Moreover, you can’t get the same amount in cash that you can spend to buy stuff online. For instance, with some cards that have an online spending limit of $10,000, you can only get $2,000 in cash through an ATM machine.

4. Flexibility

Flexibility of a payday loan is another advantage that you can get. You won’t have any restriction as to where you can spend the money. On the other hand, with other kinds of credit, you have some restrictions to consider. For instance, if you go for a car loan or mortgage, you can only spend it on a car or a house. You can’t spend that money to buy other things you may need to do your routine work. You are bound to spend the money on either a house or a car.

5. Convenience

Typically, payday loan providers are easy to deal with. For instance, their working hours are more flexible. You may find providers that stay open until 9 o’clock. They may offer support through phone, email or a live chat system. This way you can get cash advance or a payday loan. Plus, you can return the loan without any problem.

So, you can see that payday loans offer a whole lot of benefits. If you are in need of quick cash, we suggest that you consider taking out a payday loan. Hopefully, you will be able to meet your needs and return the loan as soon as you can.

Things You Need to Know About PAYDAY LOANS

Payday Loans often termed as Salary Loans or Cash advance loans are short term loans, relatively of small amount provided with the assurance to be paid back as soon as the borrower gets his salary or payday. Payday loans are generally for the time period of one or two weeks, as they are borrowed for instant need of money and are to be paid back after the next wages arrives. Borrowers need to provide a postdated cheque of the amount to be paid to the lenders. If on the very particular day the cash amount is not received by the borrower, the lenders are eligible to deposit the cheque in their respective accounts, which in case if bounces can result in a hike in the paid amount because of the cheque bounce penalties together with the effect of notice period being over. Borrowers can also use electronic mediums to receive and pay the amount.

Who are eligible to get payday loans?

Borrowers need to have a bank account and a steady source of income with their identification ids to get a payday loan, that ensures that the person is trust worthy enough to pay the loan amount back, as he is employed and earning.

Payday lenders

The payday loans are provided either by some payday loan store or the stores providing other financial services. In order to prevent the unreasonable and excessively high rates of interests over these loans by lenders, some jurisdictions limit the APR i.e. annual percentage rate that any lender can charge.

Payday compensation and refund

In some cases, the payday loan proves to be load for life, as it can reach to an extend where it becomes impossible for you to repay the whole amount you borrowed as the amount becomes unaffordable. This case generally arises when the interest rates are getting higher and higher and you are unable to pay the final amount every time. The amount generally becomes unaffordable when the only way to pay it, is to take on another loan. Sometimes the company is responsible for the situation as it provides loan to a person who already is trapped in other loans, or is not in suitable financial state, in such a case, the person can ask for a refund or compensation, after proving that the company didn’t treat him fairly. Treating unfair means suggesting wrong ideas, plans or schemes, that took the borrower at a stage where he is all surrounded by financial crises.

The borrower can prove the company was responsible for the amount getting unaffordable status for him, as it lend the loan, even after seeing the bounced cheque records, and the financial state of the borrower, the amount is now that large that it consumes more than half of his income, making it impossible for him to repay. The borrower hence can ask the compensation or refund of the amount.

The question arises now is what amount should be claimed for compensation, this totally depends on the current situation. Was it totally clear to the lender that the amount is becoming unaffordable to the customer, and if it was so then why was the lender still lending money. The amount after which the loans lend were becoming too high to get paid back by the consumer should be refunded or compensated.

Though the customer isn’t likely to get the whole amount refunded, but he can ask as much he can, and let the justice decide further. The customer first can simply ask for removing the unaffordable loans from his credit account, and a refund of all the interests he paid.

There are many companies which can help you with the payday loan compensation, payday loan claims and payday loan refunds. You should research and select the best company which can take care of your interests.