Category Archives: Payday Loans Carson CA

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.

 

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.