Author Archives: Dave Stockton

Why Bank Overdraft Charges Can Hurt You

Why Bank Overdraft Charges Can Hurt You
Some of you may not know what a bank overdraft is. For those of you who don’t, it’s when you write a check and you don’t have enough money to cover it. If you write a check for say $75 and you don’t have the money to cover it, the bank will have to cover those expenses. When that happens you end up getting overdrawn and a fee is incurred because of it. When an overdraft happens that brings your account into the negative numbers. Most banks will usually charge a $35 or $45 fee for having to cover the expense.

This may not seem like a big deal to many of you, especially if it only happens once or twice. But if it happens more than once or twice, it can have a bad impact on your banking and your credit history. Every time that overdraft happens, it gets sent right to your credit history. That has a direct impact on your credit score.

In what ways will this have an impact on your credit score? For one, it will affect your bill paying. If you miss just one payment due to insufficient funds, this gets reported to the credit bureau. Your check will bounce and the company that you owe money too will not get their money. One missed payment may not have a huge affect on your score, but several missed payments will. The more you bounce your checks, the more your score and history gets impacted. That means lack of funding for loans and mortgages. You might also have a hard time getting a job, due to this delinquency.

What about the overdraft fees? If you have just one overdraft, than it might not be a big deal. But if you keep incurring draft after draft, that money adds up. The bank can charge hundreds of dollars for unpaid debts. That money needs to get replaced. The bank will charge you that $35, if not more, to cover that debt. But that money needs to get put back. You can’t keep leaving your account in the negative numbers. The linger your account stays in the negative, the more the bank has to cover what you owe. That money still needs to get put back. it could get to the point where the bank returns the checks, without paying them. When that happens they charge a bounce-check fee on top of the fees already incurred.

For your own sake, it’s better to not let it get this far. The deeper the hole, the longer it takes to climb out of it. If it gest to this point, your bank will place your account into collections. Which means that any fee that needs to get paid back, gets reported to them. This is also a major impact on your credit score. This impacts your score much harder than paying back a payday loan.

Another negative side effect of this issue is that the bank can place a freeze on your accounts. Any wages that you make will go directly to paying off your debts. That also means that your other bills will suffer too. Your bank can press charges against you. If you are convicted of the crime, you will have to pay restitution fees. Every fee that has every been charged to your account will need to be paid back.

This also spells disaster for your credit score and history. Whatever you do, don’t let it get this far. Keep track of your accounts. Just one bank overdraft can ruin your credit score and rating for life.

Payday Loans Are Better Than Installment Loan

A payday loan can be defined as a short term loan which you are supposed to repay at your next payday. Most payday loans range from 500 dollars or less while the installment loan is the loan that you follow a number of repayment scheduled and is paid for a specified period of time. Unlike the payday credit, it is a long term loan. An example of installment loan includes the auto loans and the mortgages. Below are the reasons why the payday loans are better when compared to the installment loans.

Speed

It only takes the payday lenders just a few minutes to approve your application, however for the application to be fast and successful you have to provide the lender with all relevant information and it must be correct. Unlike the installment loans where you have to fill the lengthy forms, in this loan, the application is easy and quick. Also, when it comes to transferring of money from the lender to you it only takes a few hours, meaning you are likely to get the funds the same day or latest, the next working day. The installment loans take up to two weeks at times to get approved meaning the loan will be of minimal help in case of emergency. The good thing with payday lenders they usually inform you whether you have qualified for the loan or not so that in case you don’t qualify for the loan you can look for alternative means to get cash.

Few Requirements

For you to qualify for the payday credit, you only have to fulfill the basic requirement. One of the basic requirements is a steady source of income which can be verified.  Unlike the traditional loans that require collateral; under this loan, you do not need any collateral. The payday lenders are usually interested in the stability of your income which to them is enough proof that you can manage to repay the loan. The other requirements for this loan are permanent registration of you as resident of a particular neighborhood and you should have an active checking account.

There is also an age constraint when it comes to people who can access this loan i.e.  18 years and above. In most cases, people with permanent jobs are the one who meets this loan requirement. In case you have a poor credit rating then payday credit would work for you very nicely since unlike the installment loan which considers your credit rating, the payday lender does not consider the credit rating only your capability to repay.

You Can Qualify for Higher Amount

As a new borrower, the payday lenders will limit the amount of loan that you can access so that they can monitor your repaying behavior. Remember, the amount of loan that you have access to usually lay between the lender’s range and your salary range. It is advisable to always pay the loan within the specified time since it will determine whether the lender will increase the amount of loan that you can access in your subsequent borrowing.

The payday lenders are guided by the laws of the state when it comes to the maximum or minimum amount of loan that they can lend. During the application process is when you know how much you qualify to borrow. Remember prompt repayment of the loan creates a good relationship with your payday lender who will always provide you with a quick solution in case of an emergency.

Protecting Your Credit Rating

Most people do view the short repayment period as a shortcoming of the payday credit but in case you want to protect your credit rating, it can greatly work for you. To get my point let’s take an example of an installment loan, when you borrow an installment loan it will take you one to two years to repay the loan. During this one or two years anything can happen for example you can lose your job which is your source of income, this means you are likely to miss some installment as you look for alternative source of income and this will result in a decline in your credit rating and an increase in the cost of you loan due to the fines and penalties incurred.

A credit card is said to be convenient but for you to protect your credit rating, you have to be well disciplined when it comes to spending. Most cardholders do confess that they find it difficult to control their spending which results in them spending more than they can afford hence further affecting their credit rating.

 

 

Convenience

A payday loan is very convenient since all interaction between you and the payday lender is done online. This saves you the hustle of having to book an appointment with a loan officer. With this loan you will send the application form from the comfort of your office or home, you don’t even have to call the lender several times for you to get the cash. Remember for you to get an installment loan you have to meet the loan officer in person.

The other convince of this loan is that you can spend the loan in anything including repairing your car or paying for your water bill. Most installment loans are issued for a specific purpose. For example, a home mortgage can only be used to pay for the house and not any bills no matter the emergency. Also, the paperwork involved in payday credit is very minimal at times some payday lenders do not ask you for any document meaning there is no faxing; however there are those who insist you send them the proof of your income. The good thing it will only take you just a few minutes to fax the payday lender all the relevant documents.

As I conclude, a payday loan is the most convenient and the fastest solution to all your financial emergencies. You do not need good credit rating or collateral to get cash from payday lender unlike in the installment loan. However, it is your obligation to ensure the borrowed cash is repaid on time otherwise you will have to deal with lawsuit and penalties.

 

How Not To Make Use Of Payday Loans – Torrance Payday Loans Tips

Many people will be confronted with a down economy – at one point in their life. They might not have money that is enough to pay their bills. Others have to deal with unforeseen expenses; such as, for example, their car breaking down or emergency repairs for their home. For folks that need help getting by, until their next paycheck, they can simply take a payday loan.

The loan, is for a amount that is small, frequently a couple of hundred dollars to a thousand dollars. This will help the person get by until they get paid. After they have been paid, they could either pay the amount in full or make a certain amount of installments, before the debit is paid off. Many individuals make the mistake of that the purpose of a loan. This kind of loan is used for emergencies  – not simply for extra spending money.

A cash advance isn’t a loan for visitors who blow money. Financing a payday loan should  not be used to get clothes, or shop for other goods that aren’t needed. If a person wants something, they should save up the cash to purchase it, not simply take a loan. A payday loan should not be used to venture out and used to socialize over the weekend. Most of us must have fun and once in a while get out. A payday loan should not be used for this. An individual should not spend a couple of hundred bucks because they felt like having a night out in the town. By the time they have completed repaying the loan, it will be a very expensive night.

Payday loans should not be used to host parties or impress others. They should not be used to go to a sale at a department store. Loans should not be taken away to detail a motor car or make it look cooler. In any event, a car that operates well is fine. You can wait until enough money is saved up. These don’t count as emergency circumstances. Which they have to be paid back with interest, while it might appear like a way to get money people often forget.

Someone should not take a payday loan out to aid a buddy. It is a gesture that is nice, and the amount of money is certainly going to be paid back. In the event that close friend is falling on difficult times, they may not manage to pay the money back. However, the debtor is still responsible. If a friend is in that tight of a situation they should take away their payday loan.

Payday loans do have their purpose. Buying unneeded items and spending money foolishly is not the intent behind a payday loan. This type of loan should be used wisely, and not very often. They are needed for emergency situations, and be used sparingly. Too often, people use the loans to spend foolishly, and this is not going to get you out of debt. Learn to conserve your money, and spend money like a miser.

Payday Loans Long Beach CA

Often people in middle to lower classes find themselves in need of fast, certain money, and at the moment they need it. Thousands know when funds are short, having money when it’s available is essential to every lifestyle, but checks don’t go all the way through with the bank, or the next pay day’s more than enough to live off us, but it’s too far around the corner to put dinner on a plate. This is where payday loans come in, offering on the spot, easy money for any with a job they can rely on, but complications, sometimes, in the waiting space between paychecks. Payday loans have simple terms, are easy to set up and transact, and are short term, ensuring no built up interest or fees. Many use payday loans to buy the needed things to live on a day to day basis, and many more have the daily opportunity. Payday loans help everyone, and despite the statements against them, shouldn’t be shirked, or ignored.

What Are Payday Loans?

When money’s tight, and a paycheck’s more than an arm’s reach around the bend, things can get scary for families with children, or loved ones to care for. Or even just the solo term student, living alone. Payday loans are more or less exactly what they sound like, and are here to help in exactly these situations. When in need of a dollar, people can go to a loaner, complete a transaction, and carry on with their cash. These transactions usually take less than fifteen minutes, and are simple and easy to complete. There’s no hassle, and people can carry on their way, buying what they need and continuing their stress free lives.

Repayment of these loans is also easy, and easy to remember, because payment is due the very day you get your next paycheck. The loan can be repaid in person, the lender can cash a given check, or initiate electronic funds. It’s simple as that. There’s often a fee, usually 15%, but 15% of a cashed check is little in comparison to the damages that can be caused without the money.

Should a car be wrecked, when transportation to and from work is vital, or a serious hospitalization take place, with needed funds for bills, those without cash can enter devastating situations. Nobody wants the experience of fearing debt collectors, or repo men. When heat and electricity get shut off in a home, because bill can’t be paid, just because a paycheck is one week away and debt is piling up, life can look despairingly grim for many. Payday loaners wish to save people from this fate, with the offer of money to pay bills, debts, and purchase needed items like food, medicines, and other living essentials, invaluable to everyday life.

Who Can Get  Payday Loans Long Beach CA?

Anyone with a paycheck finding themselves in need of money, to make it through the day. There doesn’t need to be a short term date on the coming paycheck, just that the loaners know it’s coming, and you’ll pay when it gets here. Loaners understand job difficulty, as well, and should a job be lost during the repayment waiting period, most don’t have a problem continuing to wait until a job is found, and a paycheck is acquired. Payday loans are open to everybody!

In Short, Payday Loans Help People

Payday loans are a helpful, effective way to get money where’s it’s needed, and not worry about paying back until you can be certain you have money again. There’s no harassing calls, no worry when a debt collector decides it’s time to pay up. Everything is scheduled, easy, and secure to promise the best possible option to those in need.

Why Use Check Cashing Stores Instead of Banks?

In today’s tough economic times, safeguarding money and preventing any unnecessary losses or expenses is becoming increasingly important to the average American, and due to the uncertainty many people face in regards to the safety and future of their money, it may be time to consider an alternative to traditional banking.
What is becoming more evident is that as the US economy continues to struggle through the recession, bank account fees and interest rates on loans continue to surge upward and account balance requirements continue to be raised.
Many of the current well-known banks have certain account balance requirements for different types of accounts such as and account holders must ensure that their accounts always maintain the minimum balance requirements so that they don’t get charged fees or penalties for not meeting them.
This can be difficult for people who may be experiencing financial difficulties such as the slowing down or loss of employment, or having to make payments on a mortgage or loan that might be prone to fluctuating interest rates.
While there are some alternatives to regular banking such as credit unions or other financial institutions that do not require a minimum account balance or charge fees except in some extreme cases, these entities may require special memberships or be reserved solely for individuals employed by certain businesses or organizations.
When that is the case the only alternative left is a check and cash store that allows for customers to cash their paycheck and store their money in their own home.

The benefits of using a check cashing store are that customers usually do not need a permanent account with the store; they can usually just come in with their check and request the amount on the check in cash to take home with them provided they have the proper ID.
Some of the disadvantages to relying on these services include a greater risk for customers to lose their money in the case of events such as burglary or pick-pocket, not having a checking or credit card account, not having the option to direct deposit their paychecks, and the store may also charge a certain percentage of the check or small fee to cash it.
But customers also do not have to worry about losses from account balance fees that bank account holders can incur, and they also don’t have to worry about having their account frozen or hacked into.
While losses from identity theft are still possible if the customer uses online accounts with the check cashing store such as PayPal, the losses can be smaller due to the customer having complete control over how much money they wish to have in their online account, and not having a bank account linked to it that hackers can find and empty of its funds.
Even though using the check cashing store will not give the customer the benefit of earning interest that bank account holders earn in savings accounts, CD accounts, or other related accounts, their money also will not be subject to interest taxes that might be imposed on them by the government if their interest earned meets certain criteria.

Payday Loans Hawthorne CA

So many individuals today may need payday loans Hawthorne CA and they need it fast. Whether they are picking up a couple hundred bucks to cover the rent or they are simply trying to get money for an unexpected bill, we can all end up forgetting about expenses or even having it come up unannounced.

The most common option that you would get if you asked a child where you could get money would probably be a bank. Why is that? Because a bank has money and everyone wants to get their hands on some money as well.

But, while a bunch of kids might think that the bank is a great place for some cash, it isn’t necessarily the best choice for you to get your hands on some cash when you really need it. Truthfully it can be pretty difficult to try and find any sorts of loans unless you have built up solid credit however, and even then it might be pretty difficult to find some cash quickly.

Plus, while our needs might be extremely important and our deadlines might be imminent, the bureaucracy and red tape of the banking and lending world might be pretty difficult to break through at all, let alone to do so in a timely manner.

Because bankers deal with hundreds of thousands if not millions of dollars each and every day, they are at a place in their industry where the utmost of security is necessary. When you combine that with people who can and do try to steal from banks almost every week out of the year (where do you think the terms bank robbing or robbing the bank have come from?), it is absolutely essential for bankers to be extremely careful. Their diligence stems from the fact that they don’t want to be victims of some cunning schemes.

Furthermore, when individuals invest their money in banks, they also want to know that their money is being taken care of and being done so correctly as well. The last thing that the bank wants to do is report taking in fake money, falling victim to faulty schemes and cons, or even practicing faulty accounting practices or unsafe workplace and monetary processes.

In short, a bank almost HAS to be extra careful with all of their money, because so many people would like to get their hands on it. And, one minor slip up means that the bank could be out millions or even billions of dollars.

Hopefully now it’s starting to make sense why these bankers aren’t just going to hop up off of their chairs and make sure that you get the money that you need. Maybe if you were a millionaire or billionaire investor they would let you have all of the money that you would wish for at a moment’s notice, but for someone who only wants to borrow a couple hundred bucks … you’re just a small fry and you need to wait your turn just like everyone else.

However, instead of going to the bank, waiting in line, filling out half a dozen forms, waiting for a banker to approve your loan, waiting as he reads it over, and then answering half a dozen questions on why you need the money, you could have other options. Plus, while you might end up waiting days or even a week until all of your money is available to you at the bank, you could go ahead and use a payday loan system and possibly have your money in hand and then use it to pay off whatever you needed it for all by the end of the day!

Furthermore, some payday loan systems have made the process so easy that you don’t even need to go in and see them anymore! Many have started to offer the options of using the internet to fill out your request. You enter your information and you are completely able to do whatever is necessary to prove your ability to repay the loan all from the comforts of your home!

And, when you are done being amazed by that, you will also come to realize that many of these same systems are completely capable of paying you your money within hours. And they won’t just pay you, they could even give you the option to come down to the nearest branch and pick up your money in person, or they might even be able to deposit it directly into your bank account!

There are definitely a great deal of options that are available to you when you go about these processes, and you will find that the system has continued to get easier over time as well.

So, just think about it. If you are in need of money and you need it fast then chances are you are looking for the best way of getting it to you, both quickly and conveniently. It is not the worst thing in the world to have to pay a small fee on your interest if that means you can literally get an advance on your pay. Plus, if you truly need the money to pay off your bills then which would you rather suffer?

Would you rather deal with a small fee for taking out a loan and getting the money in the same day? Or, would you rather deal with not having money and needing to tell your bill collectors that you will be late on your payments as well? This might not only hurt your credit, but it could also be a situation where you will suffer heavy fees as a result of making a late payment. Guess what? Those fees might even end up being more in the long run than a payday loan fee would be itself.

I’m not saying that you need to take out payday loans Hawthorne CA, so I hope you don’t think that I am pushing it on you. BUT, I do know that sometimes the worst things that will happen is that we get bills when we expect them least. Don’t put yourself in that situation. Always have a backup plan. One of the top backup plans could be a payday loan.

Payday Loans Compton CA

When individuals start to think about needing money fast, there are more than enough sympathy stories around the country which can fall right into line in the same exact way. Times are tough and it is becoming more and more difficult to even find a legitimate job let alone have enough cash coming in to pay off all of your debts. And, while it might have been due to negligence or just miscalculations, even having old debts in the past can continue to haunt you unless you can find a way to get the cash you need now in order to pay them off.

Everyone knows that debt is never a good thing when you don’t use it as it was originally intended. Debt is when you don’t have the money for something now that you really need, so you borrow and basically get an “IOU” (I owe you) in order to obtain the item(s) that you want and need. However, just because you are borrowing the money doesn’t mean that you won’t have to pay it back, and in most cases you will actually be forced to pay back more than you borrowed in the first place in the form of interest! So while it is important to make sound financial decisions, many people abuse their power of borrowing and will instead end up putting themselves in a significant hole full of debt.

The most important step to digging yourself out of debt isn’t by using payday loans, but they definitely are an important part of the entire system. Probably the first thing that you should be looking into with your debt situation is to curb your spending! If you live outside of your means and continue to stretch yourself thin, then you will hit a point where your entire pay is wasted paying old bills or you might even get in over your head to where you can’t even afford what you owe to others. Plus, because interest continues to pile up over time, it only makes sense that the more debt you find yourself in that the faster it will snowball.

Finding out how to use a payday loan correctly is pretty important, and as long as you think through your specific financial situation then you should absolutely be able to get out of debt relatively quickly by using payday loans to your advantage. The first thing to think about is whether or not you can actually afford to skip using payday loans. Sure, some people get upset that payday loans will charge a fee, but shouldn’t that fee be seen as the cost of doing business and not as just some sort of charge that will hurt your wallet? After all, when a credit card or the bank charges you a slight fee, it’s never actually seen as a big deal; in fact people have come to actually just expect it as part of the process. But why then do individuals get upset to have real money put into their pockets in no time at all while they don’t even have to go through a credit check or wait a long time for their loan to clear?

Once you have actually taken the steps to get the cash you need right now to pay off your loans then you should take the time to look into what sorts of behaviors and habits you can change. You need to actually discover what sorts of habits you can change that actually got you into debt in the first place. People seem to care about a few bucks when it comes to borrowing money with payday loans, but then they just don’t seem to mind when they spend a few dollars here and there on non-essential items; talk about a weird behavior concerning finances.

After you have found the way to trim down your finances to a specific level that will allow you to pay off your future debts, then you will finally be living within your means. In other words, you can actually start to pay off your bills on time and you won’t have to continue worrying about late fees. You will also be able to start chipping away at your debt rather than continuing to see it add up to higher and higher amounts. And, as you finally decrease your debt then you will see it decrease by greater and greater amounts just like it originally had snowballed up in the first place. This is great news simply because the more you pay off the less you will owe, and the less you owe the more money you will have each payday to put towards paying off your debt.

In the end it is extremely important to realize that there is no magic way of getting out of debt. You won’t just wake up one day and discover all of your money problems have been solved so you actually need to work hard at it in order to get ahead of the curve. By thinking ahead and using some clever problem solving skills, you can absolutely use payday loans to dig out of debt and actually get ahead. Whether or not you end up getting out of debt as well as how long it takes you will always come down to you, but by being able to access real money in no time at all you can not only avoid digging your debt hole deeper, you can also start to fill it in and get back on the path to financial freedom.

If you have any sort of debt problems or you just want to learn more when it comes to what you can do with respect to paying off your bills and loans, make sure to look into payday loans to dig out of debt as soon as you can. You might learn something, end up saving a ton of money, or even find a few ways to think outside of the box and get ahead in the end.

Payday Loans Torrance CA

If you aren’t really sure of how it happened, but do know that somehow you are actually in the middle of a cash crunch, then you need to figure out what type of risk tolerance you actually have. You see, while it can happen to many of us, the truth is that if you don’t have enough cash in your bank account when your bills all start to come due at the same time, you could be facing a combination of horrible outcomes. Things like overdraft fees (which can hurt the terms of your agreement and jack up your rates), late fees for your bills (which could also hurt your credit and kick other penalties into play as well), or even some sort of scenario where you end up being hassled by the creditors and might even have to deal with bill collectors or other repossession type agencies.

The thing is that no matter who you are or what you end up doing, you do need to get your finances and spending completely under control. If you don’t, then you are just going to end up facing this same problem week after week and month after month, until you finally do get the problem under control. However, if for some reason something has come up that you just didn’t account for, instead of risking higher fees, higher rates, and a huge hassle, then why not look into a payday loan to tide you over for the short term?

Payday loans are basically a quick way to take care of any lapse of cash that you might have. They more or less just give you an advance on your paycheck, just like your parents used to give you an advance on your allowance. Like any company, they do want to make a profit so they will charge you some money to loan you the cash as well, but it’s nothing out of the ordinary as long as you know what you are doing.

Credit cards can really be a pain when you have to pay something but you can’t pay with credit. What if you need to fill out a utility bill, rent, loan payments, or even your credit card payment, but just don’t have the money at this time? The truth of the matter is that a credit card can definitely come in handy for a lot of situations. However, a credit card cannot actually replace cash or having some sort of access to cash in all circumstances. That’s why it’s great to be able to use a payday loan because you actually walk away with real cash in your hands which you can use for anything. It’s real money and it’s your money, you are just getting your hands on it a little bit earlier than you originally had thought.

Another major problem with something like a credit card is that you don’t really become forced to pay it off. In the long run you will end up accruing hundreds or even thousands of dollars in debt, but because it takes so long you will actually not seem to notice the small amounts add up. You will also not be in a situation where you feel compelled to paying off your credit for potentially a long time until it becomes too much debt for you to handle!

A payday loan, however, is one that will organize the whole transaction so that they loan you money now and then will take back what you borrowed as well as a small percentage of the transaction for themselves for the costs of simply doing business. But, they don’t let you string out the payments forever and slowly bleed yourself (and your finances) throughout the long run. It is specifically a painless transaction that will give you the money right up front and you can have cash for whatever it is that you actually need.

It should be noted that if you do use a payday loan and don’t follow the agreements as stated at the time of the completion of the transaction (when they gave you the money up front), then you could wind up having to pay high rates and fees. They need to run a business as well, and the only reason that they are loaning you money in the first place is because they think you are trustworthy. The last thing that you want to do is screw up your credit by not paying back your payday loan when it was agreed upon that you would!

There are a lot of minor hurdles to cross in order to secure a loan, though, and many of those will actually help to ensure that you can afford the loan and that it will make sense for you. The payday loan centers will usually want to know what your employment status is and how much you make in any given paycheck. They don’t want to loan you too much money because they want to be sure that you can pay them back. They also don’t want to give you money too far out in advance, because who knows what can happen in the next 30 days (including the interest rates)? And, while it might not seem necessary, they will probably have some other store specific policies such as checking your residence or checking your credit. They need to run a business and they aren’t just going to loan you money if they think you are about to skip town on them.

Overall, a payday loan can be a very good tool for helping you to have access to some real money in the short term. Like anything else in this world, you will have to pay a small amount for it. But, as long as you end up making the most of the situation at hand and are doing it for good reasons instead of bad, then it’s almost like an investment. Just make sure that you end up getting your spending habits under control in the long run so that this doesn’t happen again, and until then you should be fine for your overall payday loan.

Payday Loans In Gardena CA – What Is A Payday Loan?

Sometimes, when your bills are due and payday isn’t for another week, you’ll need some kind of money coming in to support yourself. Unfortunately, unless you have another way to supplement your income, the ways for getting this money could be difficult. That is where payday loans come into play. They can help you get the money that you need so that you can pay those bills. Let’s take a look at how they work.

What Are Payday Loans In Gardena CA?

A payday loan has many names. Some call it a cash advance loan. Some call it a check advance loan. Another name is a post-dated check loan. Still others call it a deferred-deposit check loan. The Federal Trade Commission in the U.S. calls it “costly cash”. No matter what you call it, it’s the same thing: a small (usually $50-$500) short-term loan with high interest.

Why Would Anyone Get a Payday Loan?

Payday loans are popular for a number of reasons. To those who are in the position of needing one, the advantages outweigh the disadvantages. And there are disadvantages, but we’ll look at those later. First, put yourself in the shoes of the person who needs some quick cash. Perhaps you’ve just been put in the unenviable position of unexpectedly needing some cash and being “caught short”.

You might have had an unexpected medical bill or car repair bill, or you might have to travel unexpectedly, like in the case of a death in the family. Others who need quick cash use it to pay their everyday expenses, like rent, groceries, utilities, etc. Whatever the reason, you need that cash and you just don’t have it.

Is a payday loan your last resort? Do you have other alternatives you could explore first? Well, what are the benefits of payday loans? Let’s see:

§ You won’t have to go through the hassle of a credit check.

§ You can apply in person, on the phone or on the Internet.

§ The process takes less than 20 minutes.

§ The loan proceeds are automatically deposited into your bank account within 24 hours.

§ It’s affordable, at least immediately – you don’t have any up-front costs.

§ It’s discreet – nobody else is involved.

§ It’s secure – your financial information isn’t shared with others.

Ok, that makes sense. Those are enough reasons to get rid of the stress of being short of cash. It’s a “quick fix”. You can cover the shortage, and get on with your life. And you’ll be able to pay it back next payday, right? So you’ve solved your problem.

Where Can Someone Get a Payday Loan?

Payday loan companies are all over the place. There are over 10,000 payday loan outlets in business in the U.S. And they’re spread out in similar fashion throughout the world. If there isn’t a payday loan store near you, you can search the Internet and find hundreds of online payday loans there.

These companies are in business to “help” those in dire financial need. They offer these loans to people who can’t find the money they need anywhere else. Let’s profile one company who offers payday loans as part of their overall financial services business – Money Mart.

Money Mart was created as an alternative to banks. Their hours would extend beyond banking hours, and they’d situate themselves in more accessible locations than banks. They could cash checks when banks were closed, and people wouldn’t have to travel very far for their services. They must have been on the right track because now, they have 1,700 locations in Canada, the U.S. and the U.K.

A typical Money Mart customer is an average working person, 32 years old (82% of customers are under the age of 45) and employed, with an annual income around the national average. These customers go to Money Mart because of their fast service, their convenient locations, and their extended operating hours. The founders of Money Mart were right – their original ideas still hold true today.

Since adding payday cash advances to their financial services, they’ve carved themselves a very nice niche in the industry. But they’re definitely not the only choice. You can now find at least one, and usually several, payday loan centers in every community.

Why Wouldn’t Someone Get a Payday Loan?

Now that we’ve looked at the convenience of payday loans, let’s take a fair look at the disadvantages. Throughout the U.S., governments on every level are looking at payday loan outlets with increasing concern. Many people think that they take advantage of low-income people in financial trouble. Some go as far as to say they “prey” on them. Their argument to that is that they’re filling a need and they’re not doing anything illegal.

Common Payday Loan Example

If you came up short again, you needn’t worry – payday loans are renewable, or extendable. This process is called “rollover” and, if you do it too many times, it could end up costing you a lot of money. Let’s look at an example: Say you borrowed $100 for 14 days (until your next payday). You write a check to the lender for $115 (includes your $15 fee).

The APR (annual percentage rate) of that loan is 391%! If you can’t pay back the $115 on the due date, you can rollover the loan for another two weeks. If you rollover the loan three times, the finances charge would reach $60 for a $100 loan. That’s pretty high interest, don’t you think?

These are things you need to consider when you’re deciding if a cash advance payday loan is the right choice in your particular situation. Yes, the cost of the loan is high, but it provides you with the money you need, when you need it, thus avoiding a lot of stress and trouble. It’s very true in consumerism today that convenience costs money. But is it worth that much? That’s a question you’ll have to answer for yourself.

Conclusion

Now we’ve clearly shown both sides of the argument – and it’s a huge argument these days. So which party do you side with? That depends on your immediate situation. If you really just have to have it, and you don’t have any other choice, then a payday loan is probably the wise thing to do. At least you’ll be able to keep your sanity, even if it does cost you a few dollars.

When you find yourself in that situation, use it as an opportunity to learn. Remember, there are no mistakes – just lessons. If you have to get a payday loan, make sure you don’t roll it over too many times – that’s when it becomes a problem. And in the meantime, try to build up an emergency fund so you will be able to cover those unexpected costs. Become a good financial manager. Then you’ll have an alternative, and you won’t have to rely on a payday loan as”your last resort”.

Payday Loans Carson CA – Qualifications

Qualifying for payday loans Carson CA is much easier than qualifying for any other kind of short-term loan. Basically, all you have to do is establish that you are employed and meeting the monthly minimum income requirements to be approved- and poor credit isn’t even a factor. In this article, we are going to cover some of the biggest requirements that you should meet when applying for an advance payday loan. But first, let’s take a look at exactly what a payday loan is.

What is a Payday Loan?

Most people who are employed get paid bi-weekly or twice per month. The only problem is that sometimes an unexpected financial crisis will occur and you’ll need money to get by until the next paycheck arrives. This is when an advanced payday loan may come into handy. Payday loans can help get you out of rough situations and they don’t high extremely high interest rates so they are easy to pay off.

Qualification #1: Steady Income Stream

One area that a payday loan agency will look at closely is your monthly income. After all, they need to be sure that you are able to pay it off. Most loan companies will ask for one or two months’ worth of employment history as well as proof of any additional income that you earn.

The good part about this is that you don’t really need to be making that much in order to qualify. Most lenders will grant you loan if you are making between $800 and $1,200 per month after taxes. However, the overall amount will vary depending on the payday loan lender.

Qualification #2: Active Checking Account

You need an active checking account so that you can receive the funds if and when you are approved. Some loan companies require proof of an established checking account that has been active for at least four months.

They do this to make sure that you have no outstanding debts or negative balances on your account. If there are outstanding debts or balances on your account then make sure that you take care of those first. While not all payday loan agencies represent this method, some will so it is better to be safe than sorry.

Qualification #3: Minimum Age Requirement

In the United States, you need to be at least 18 years of age in order to qualify for a loan. A parent cannot co-sign for you either if you are under the minimum age requirement. When you show proof of an established checking account, this is enough to let creditors know that you are of legal age to accept a payday loan.

Additional Qualifications

Besides your age, a credit agency will need to have some other fundamental info on their record before awarding you the loan. This can include phone number, address, name, and sometimes your social security number. When you are applying online, you may have to call to verify this information. The reason they do this is to prevent people from accessing money that they don’t necessarily qualify for.

Having this information will ultimately allow lenders to know whether or not you are going to make your payments. And while they won’t “know”, they will have enough information to suggest or make a prediction one way or the other. Basically, you shouldn’t feel afraid about giving out this information. All of it will be kept confidential and will never leave the loan agency.

How Long Do I Have Before I Have to Pay My Loan Off?

Generally, you’ll have two weeks (next paycheck) before you have to pay back your loan. There are some loan companies that offer you the chance to make an extension and pay off your loan on a further date. If you are fortunate enough to receive an extension, then keep in mind that the interest is still going to accumulate.

If possible, you should try paying off your loans early. Psychologically, this helps because it removes the worry of having that payment due. Plus, it makes it less likely that you will continue to splurge, even though you don’t have the money to do so.

Online vs. Neighborhood Payday Lenders

There really isn’t a difference between going to a neighborhood lender for a loan and applying for one online. The benefit to doing it online is that you don’t have to leave the comfort of your own home. Both offer speedy payments once you are accepted and both have applications that can be filled out in a matter of minutes.

It is easier to find the best online payday loan services because there are many more resources on the Internet for doing so. The best tip we can provide you is to take all of those resources and use them to make comparisons. Using your own judgment is much better than relying on the opinions others, although that can be very important as well. In general though, online payday loan services are much more convenient and user-friendly than neighborhood payday loans.

How Do I Get My Money?

If and when you are approved, you’ll receive your funds in your checking account. Note that all payday loan services require that you have an active checking account. This allows for a quick and speedy payment. More times than not, you’ll receive your payments the very same day. If not, you’ll generally have to wait about 24-48 hours before receiving your money. Also, since you must have a checking account to qualify, this also means that you need to be at least 18 years of age.

Conclusion

Most payday lenders aren’t too strict and will be satisfied with the basic information that you provide for them. Just remember that it’s harder to qualify for a second payday loan if you haven’t yet paid off the first one. But this shouldn’t be a problem considering that their interest rates are ultra-competitive for short-term loans. You may only end up paying an additional 10% on the money borrowed.