Low APR Loans: What is the need?
Loans prove to be helpful in the times of financial crisis, but if not managed properly it leads to a complete vicious circle where to pay a loan the customer takes another loan and it continues… low APR loans are quite helpful in these circumstances as they provide loans at lower rates compared to other loans. Whether a person wants to build a new home or wishes to repay the existing loans lent at higher rates, low APR loans are present for the rescue.
Low APR loans solve the problem of financial stress to a greater extent. These loans are a boon to the borrowers who really want to settle their financial problems. Low APR loans are crafted so as to help the majority of the people.
Low APR Loans: Eligibility, Interest Rates and Loan Amount
Low APR loans are available for people of the age group 21 to 80 years. Homeowners and non-homeowners are equally eligible for the low APR loans.
The interest rates for these loans vary in the range of 6% to 12%, which is quite low compared to other loans. The rates are very much dependent on the loan amount and the repayment period. Any sum in between £1000 and £25000 can be sanctioned without any proofs. But a customer is required to have some proofs regarding his/her income in order to have a greater sum. The income proof can be in the form of recent pay slips or assessment in the case of self employed persons.
One of the important point that distinguishes from other loans is the lower interest rates. The rates are very much influenced by the repayment period. Obviously short term loans will fetch maximum profit to the borrower. In these loans too, secured type has got an edge over the unsecured one. The reason is quite clear, as in the case of secured cheap APR loans the borrower keeps some property as collateral which lowers the risk factor associated with the loan. People with bad credit rating need not worry much as loan is sanctioned to them but at a bit higher rates.
Low APR Loans: Repayment Mode
Repayment mode is one of the prime factors which make low APR loans different and customer friendly when compared with other loans. At the time of issue of the loan, the monthly repayment is fixed and afterwards it has nothing to do with variation in the rate. At times, there may arise a situation when a person is in a position to repay the loan before the tenure. And low APR loans here also provide the freedom to repay the loan in between, without imposing any extra financial burden on the borrower.
Low APR Loans: In a Nutshell
Low APR loans are helpful in situations like building a new home, repaying the loans taken at higher rates, buying a car etc. So go to different lenders, have loan quotation and judge which is well suited to your requirements
Source: EzineArticles.com
Tuesday, June 19, 2007
Secured cheap homeowner loans – For your larger loan need
What are secured cheap homeowner loans? A secured loan is a type of loan that requires the borrower to furnish a security to the lender. In case of a secured homeowner loan the security is the borrower's property. Secured homeowner loans are available in varying amounts can be used for different purposes. The loan amount usually is £3,000 - £50,000 but some lenders may lend up to £100,000. Repayments are made monthly and over a period that is agreed at the outset which can range from 3 years to 25 years. A penalty could be charged for pre-paying the loan so the borrower should check the lender's policy regarding the same.
Term to know: Home equity
Home equity is a key thing that separates secured homeowner loans from standard personal loans. It is based on the equity that a homeowner has in their house or real estate. Equity is the portion of borrower’s home that he/she actually owns. If the borrower pays off more mortgage then the home equity increases. So, the more equity the borrower has, the more money he/she has invested in the house and hence the more of it can be converted into a secured homeowner loan. Home equity becomes the collateral for the loan and hence larger amounts of equity usually translate into larger maximum loan amount available to the borrower.
About interest rate
The interest rate charged by the lenders is referred to as the Annual Percentage Rate (APR). The APR quoted by the lender acts as a guide to find the exact rate offered on an individual basis. Borrowers in their own interest should compare the APRs of different loans, as this is a good way to determine how competitive they are.
The amount a borrower can borrow depends on the term available and the APR depends upon the equity that the borrower has in the property, the lender's view of borrower’s ability to repay the loan and other personal circumstances like adverse credit history. A borrower may be able to borrow up to 125% of the property value if the lender finds the other conditions satisfying.
More advantages:
Since it is a secured loan it is much easier to obtain than unsecured loans. The reason is that the lender has the added benefit of security, which provides protection in the event of a customer's inability to repay. It is very helpful for the self-employed, people with an adverse credit history etc. to take a loan. They are very useful when the borrower wants to take a loan of a large amount. Through these kind of loans the applicants can take the loan for a longer period. How is a borrower protected?
A secured home owner loan is subject to The Consumer Credit Act 1974. The Act contains regulations about how money should be lent and covers loans up to £25,000. Loans for sums more than £25,000 are not regulated. Lenders offer insurance policies and payment protection schemes to cover the borrower’s monthly repayments in the event of an accident, sickness, unemployment and death. Both the cover as well as the cost varies from one lender to another so the borrower should check the loan terms and conditions.
Since the home of the borrower is at stake it would be wise on the part of the borrower to be proactive and know as much as possible about the loan product.
How can the loan be used?
There is no limit on what use the loan is put to by the borrower. It can be used like most personal loans: buying a new car, paying for education expenses, making home improvements or repairs, debt consolidation etc.
Shopping for a loan
The main things that a borrower needs to know in order to find the best deal is to know how the loans work and the process of researching loans and loan rates. In order to simplify the search for UK secured homeowner loans, it's best to get several loan quotes from a variety of sources and then take a decision.
Source: EzineArticles.com
Term to know: Home equity
Home equity is a key thing that separates secured homeowner loans from standard personal loans. It is based on the equity that a homeowner has in their house or real estate. Equity is the portion of borrower’s home that he/she actually owns. If the borrower pays off more mortgage then the home equity increases. So, the more equity the borrower has, the more money he/she has invested in the house and hence the more of it can be converted into a secured homeowner loan. Home equity becomes the collateral for the loan and hence larger amounts of equity usually translate into larger maximum loan amount available to the borrower.
About interest rate
The interest rate charged by the lenders is referred to as the Annual Percentage Rate (APR). The APR quoted by the lender acts as a guide to find the exact rate offered on an individual basis. Borrowers in their own interest should compare the APRs of different loans, as this is a good way to determine how competitive they are.
The amount a borrower can borrow depends on the term available and the APR depends upon the equity that the borrower has in the property, the lender's view of borrower’s ability to repay the loan and other personal circumstances like adverse credit history. A borrower may be able to borrow up to 125% of the property value if the lender finds the other conditions satisfying.
More advantages:
Since it is a secured loan it is much easier to obtain than unsecured loans. The reason is that the lender has the added benefit of security, which provides protection in the event of a customer's inability to repay. It is very helpful for the self-employed, people with an adverse credit history etc. to take a loan. They are very useful when the borrower wants to take a loan of a large amount. Through these kind of loans the applicants can take the loan for a longer period. How is a borrower protected?
A secured home owner loan is subject to The Consumer Credit Act 1974. The Act contains regulations about how money should be lent and covers loans up to £25,000. Loans for sums more than £25,000 are not regulated. Lenders offer insurance policies and payment protection schemes to cover the borrower’s monthly repayments in the event of an accident, sickness, unemployment and death. Both the cover as well as the cost varies from one lender to another so the borrower should check the loan terms and conditions.
Since the home of the borrower is at stake it would be wise on the part of the borrower to be proactive and know as much as possible about the loan product.
How can the loan be used?
There is no limit on what use the loan is put to by the borrower. It can be used like most personal loans: buying a new car, paying for education expenses, making home improvements or repairs, debt consolidation etc.
Shopping for a loan
The main things that a borrower needs to know in order to find the best deal is to know how the loans work and the process of researching loans and loan rates. In order to simplify the search for UK secured homeowner loans, it's best to get several loan quotes from a variety of sources and then take a decision.
Source: EzineArticles.com
Monday, June 18, 2007
How To Get a Bad Credit Personal Loan
A bad credit personal loan is still a possible - and some will say viable - option. Don't let a bad credit report prevent you from applying for emergency cash.
While a bad credit personal loan is a good reason for your lender to examine your situation with a fine-toothed comb, do not despair. If lender “A” rejects your application, you move on to lender “B”. A bad credit personal loan is not a social stigma. These types of loans change hands everyday. And people do manage to repair their bad credit, so they eventually qualify for a bad credit personal loan, warts and all.
You and I know that there are thousands, if not millions, of bad credit personal loan lenders out there. In fact, most of these people thrive on the phenomenon of bad credit. Without bad credit, they could be packing their bags and looking for more lucrative ways to make money.
You see, you may not be aware of this but a bad credit personal credit can still generate substantial revenues for the lender. Don’t ever doubt this – or else why do they stay in business? What these lenders like to see on their desks is a higher number of personal loan applications from people with bad credit.
Bankers and lenders have several strategies to turn a bad credit personal loan into a cash cow. They’ve studied the human factor, they know the dynamics of lending and banking, and they have the means to get their money back. There are mechanisms in place – supported by legislation - to ensure that they do get their money back.
A bad credit personal loan will require a lot of supporting documents. Your credit report card, for one, a list of all your assets and liabilities, proof of revenue, and whether or not this is your first bank personal loan for bad credit. It does not end there.
Your bad credit personal loan may be slapped a higher interest rate, and may be for a shorter term so that your monthly payments could be rather steep. Your lender may also opt to insert a few clauses that could constitute hardship – like an acceleration clause for one, or a balloon payment clause – if you default.
However – and this is the most encouraging part – if you have excellent negotiation skills and you have one – just one - proof that demonstrates your integrity, you could go back to your lender after a few months and ask him to “ease up” on the restrictions of your bad credit personal loan!
Source: EzineArticles.com
While a bad credit personal loan is a good reason for your lender to examine your situation with a fine-toothed comb, do not despair. If lender “A” rejects your application, you move on to lender “B”. A bad credit personal loan is not a social stigma. These types of loans change hands everyday. And people do manage to repair their bad credit, so they eventually qualify for a bad credit personal loan, warts and all.
You and I know that there are thousands, if not millions, of bad credit personal loan lenders out there. In fact, most of these people thrive on the phenomenon of bad credit. Without bad credit, they could be packing their bags and looking for more lucrative ways to make money.
You see, you may not be aware of this but a bad credit personal credit can still generate substantial revenues for the lender. Don’t ever doubt this – or else why do they stay in business? What these lenders like to see on their desks is a higher number of personal loan applications from people with bad credit.
Bankers and lenders have several strategies to turn a bad credit personal loan into a cash cow. They’ve studied the human factor, they know the dynamics of lending and banking, and they have the means to get their money back. There are mechanisms in place – supported by legislation - to ensure that they do get their money back.
A bad credit personal loan will require a lot of supporting documents. Your credit report card, for one, a list of all your assets and liabilities, proof of revenue, and whether or not this is your first bank personal loan for bad credit. It does not end there.
Your bad credit personal loan may be slapped a higher interest rate, and may be for a shorter term so that your monthly payments could be rather steep. Your lender may also opt to insert a few clauses that could constitute hardship – like an acceleration clause for one, or a balloon payment clause – if you default.
However – and this is the most encouraging part – if you have excellent negotiation skills and you have one – just one - proof that demonstrates your integrity, you could go back to your lender after a few months and ask him to “ease up” on the restrictions of your bad credit personal loan!
Source: EzineArticles.com
Online cash loans: at your comfort
Online cash loans won’t make his borrower to stand in long lines or to face any sort of discomfort as with a simple web search borrower can locate his best deal.
Online cash loans are small, short term loans that don’t require any asset as a security against the loan amount. But before acquiring online cash loans borrower must go through the terms and conditions carefully.
Online cash loans are offered at the higher interest rate because of their short term nature and no security requirement. But proper research can be fruitful in availing feasible interest rate.
Online cash loans offer fast and quick cash approval as no credit checks and collateral is evaluated. And if you possess adverse credit to your history like CCJ’s, IVA, defaulter or arrear holder then also you can enjoy the same features to that of borrower with good credit history.
Online cash loans can be easily accessed by clicking a button as with a single click borrower can have access to various lenders who offers cash loan. Therefore, always carry a research on online cash loans before signing any of your personal information away.
Securing online cash loan is easy as it require borrower to fill the simple online form regarding his current employment with minimume salary of £ 1200 and saving account. Besides this borrower with minimum age of 18 years can only opt for the online cash loan.
The amount for the online cash loans varies from £100 - £1, 000. The repayment term for the payday loan ranges from 7-31 days. It’s quite obvious that the maturity date collides with the borrower’s next payday.
In case borrower fails to repay the loaned amount within proper time frame, then he will be asked to pay a higher amount with extra rate of interest. Therefore it is always suggested that borrower should pay off the amount in time to ignore any kind of hassle.
A simple click can click your urgent, unplanned, unexpected needs with easy and fast cash approval.
Online cash loans are small, short term loans that don’t require any asset as a security against the loan amount. But before acquiring online cash loans borrower must go through the terms and conditions carefully.
Online cash loans are offered at the higher interest rate because of their short term nature and no security requirement. But proper research can be fruitful in availing feasible interest rate.
Online cash loans offer fast and quick cash approval as no credit checks and collateral is evaluated. And if you possess adverse credit to your history like CCJ’s, IVA, defaulter or arrear holder then also you can enjoy the same features to that of borrower with good credit history.
Online cash loans can be easily accessed by clicking a button as with a single click borrower can have access to various lenders who offers cash loan. Therefore, always carry a research on online cash loans before signing any of your personal information away.
Securing online cash loan is easy as it require borrower to fill the simple online form regarding his current employment with minimume salary of £ 1200 and saving account. Besides this borrower with minimum age of 18 years can only opt for the online cash loan.
The amount for the online cash loans varies from £100 - £1, 000. The repayment term for the payday loan ranges from 7-31 days. It’s quite obvious that the maturity date collides with the borrower’s next payday.
In case borrower fails to repay the loaned amount within proper time frame, then he will be asked to pay a higher amount with extra rate of interest. Therefore it is always suggested that borrower should pay off the amount in time to ignore any kind of hassle.
A simple click can click your urgent, unplanned, unexpected needs with easy and fast cash approval.
Tuesday, June 5, 2007
No Income Verification Home Equity Loan
A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to document income.
The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.
In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for "no income no assets" meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.
Source : EzineArticles
The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.
In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for "no income no assets" meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.
Source : EzineArticles
A Loan That Can Keep Up To Your Demands
Your home gives you the privilege of raising a huge loan amount on it. If you pledge your home with a lender you can get not only a big loan amount but the rate of interest will also be very low compared to other forms of borrowing money.
A secured loan can be repaid in monthly instalments that may extend up to 25 years. Your loan’s EMI (equated monthly instalment) involves a mix of interest, as well as the principal amount. In initial stages of a loan, since the amount outstanding is more, the interest constitutes a major portion of the EMI. As the loan recedes, the interest becomes less predominant and the principal portion increases in the EMI. You can accordingly decide whether you want to repay your loan earlier or not.
Secured loans provide you flexibility in repayment terms. You can choose a variable rate of interest, a fixed rate of interest or capped rate of interest. The variable rate of interest varies with the fluctuations in base rate of interest as decided by the Bank of England from time to time.
The monetary policy committee of the BoE decides the base rate according to the prevailing situations in the market. Fixed interest rate options against secured loans means that you are required to pay interest at pre-specified rate regardless of the changes in base rate. In case of capped interest rate, the interest rate cannot go beyond the cap provided but within that cap it remains variable.
Since secured loans are taken out by pledging your home, these loans are also known as homeowner loans. These loans offer you many advantages like low APRs, deferred repayments, repayment holidays, flexibility in repayment terms, etc. Many types of finance are available in the UK financial market but when it comes to borrowing big amounts, homeowner loans are largely relied upon by the borrowers.
The author is a business writer specializing in finance and credit products and has written authoritative articles about personal loans, homeowner loans. He has done his masters in business administration and is currently assisting Shakespearefinance as a finance specialist.
Source : EzineArticles.com
A secured loan can be repaid in monthly instalments that may extend up to 25 years. Your loan’s EMI (equated monthly instalment) involves a mix of interest, as well as the principal amount. In initial stages of a loan, since the amount outstanding is more, the interest constitutes a major portion of the EMI. As the loan recedes, the interest becomes less predominant and the principal portion increases in the EMI. You can accordingly decide whether you want to repay your loan earlier or not.
Secured loans provide you flexibility in repayment terms. You can choose a variable rate of interest, a fixed rate of interest or capped rate of interest. The variable rate of interest varies with the fluctuations in base rate of interest as decided by the Bank of England from time to time.
The monetary policy committee of the BoE decides the base rate according to the prevailing situations in the market. Fixed interest rate options against secured loans means that you are required to pay interest at pre-specified rate regardless of the changes in base rate. In case of capped interest rate, the interest rate cannot go beyond the cap provided but within that cap it remains variable.
Since secured loans are taken out by pledging your home, these loans are also known as homeowner loans. These loans offer you many advantages like low APRs, deferred repayments, repayment holidays, flexibility in repayment terms, etc. Many types of finance are available in the UK financial market but when it comes to borrowing big amounts, homeowner loans are largely relied upon by the borrowers.
The author is a business writer specializing in finance and credit products and has written authoritative articles about personal loans, homeowner loans. He has done his masters in business administration and is currently assisting Shakespearefinance as a finance specialist.
Source : EzineArticles.com
Sunday, June 3, 2007
Unsecured Loans - Tenant Loans For Something Special
Looking to buy something special? Have you considered using an unsecured loan? They're very common these days and this article shows you just what's involved when you make an application.
Unsecured loans can be perfect for providing the finance for something you’ve always wanted but have never had the cash available to go and buy before. No matter what it is that you have in mind, as long as your purchase is not for commercial / business reasons, there are lenders who specialise in this type of loan who are looking to help.
Exciting isn’t it? Before we get carried away however, the fact that you are reading this article may suggest that you sense that there could be a problem waiting for you when you apply. Let’s take a look at where some of those problems may arise…
Unsecured loans are typically available for between £500 to £15,000 with most lenders. If you need more, you may not be able to get the money you need in this way. The reason lenders put a ceiling on the amount of money that they are prepared to lend is primarily because they have no real security that you are going to pay the money back. If you think about it, nobody has the right to borrow money. This means that the lender will need to test your suitability to their particular rules before they agree to provide you with the finance you need.
Whilst still substantial, the amounts of money involved are perhaps significantly less than with a mortgage or a secured loan which reflects the level of risk that you are asking the lender to face when investing their money in you. That is not to say that they think that you are going to default but if you did, and as many have in the past often due to unforeseen circumstances, the lender may have not only lost their capital investment; they have lost their interest to be earned from the deal as well. Whilst they could force you through the courts to repay the money and they could recover some of the money through the use of bailiffs, it is hardly an ideal solution.
With unsecured loans and tenant loans, they will probably prefer to run a few checks on you and your financial circumstances first. They will check your citizenship to see how likely it is that you could up-sticks and return to your country of origin once you have received the cheque. It is important that you are a UK citizen.
They will look at your history of residency in your current and previous properties if you have been in the current home for less than three years. Again, they want to know how likely it is that you may move and effectively disappear with their money once you have the cheque.
Employment history is also important because with employment comes income to repay the loan. Regular income and preferably from the same employed over a period of years is desirable with a lender because this shows stability and reduces to some extent, the likelihood of you becoming unemployed in the near future and being unable to repay the loan.
They will also want to check your credit file with one of the large credit reference agencies such as Experian or Equifax to see whether you have borrowed money through other forms of credit in recent times and whether you have kept up the repayments or not. This helps them to understand whether you are likely to default in the future.
Once they have this information amongst other questions that they may ask, they apply a points score to the results and if the score is within a certain threshold figure for that particular lender, they may agree to lend you the money and you can now begin to enjoy the benefits of your loan.
Unsecured loans and tenant loans are pretty straightforward to apply for these days, so just find an online broker and fill in your details on their enquiry form and sit back and relax. They will take charge of the application process and do the vast majority of the work on your behalf. Good luck with your application!
Source : 1888articles.com
Unsecured loans can be perfect for providing the finance for something you’ve always wanted but have never had the cash available to go and buy before. No matter what it is that you have in mind, as long as your purchase is not for commercial / business reasons, there are lenders who specialise in this type of loan who are looking to help.
Exciting isn’t it? Before we get carried away however, the fact that you are reading this article may suggest that you sense that there could be a problem waiting for you when you apply. Let’s take a look at where some of those problems may arise…
Unsecured loans are typically available for between £500 to £15,000 with most lenders. If you need more, you may not be able to get the money you need in this way. The reason lenders put a ceiling on the amount of money that they are prepared to lend is primarily because they have no real security that you are going to pay the money back. If you think about it, nobody has the right to borrow money. This means that the lender will need to test your suitability to their particular rules before they agree to provide you with the finance you need.
Whilst still substantial, the amounts of money involved are perhaps significantly less than with a mortgage or a secured loan which reflects the level of risk that you are asking the lender to face when investing their money in you. That is not to say that they think that you are going to default but if you did, and as many have in the past often due to unforeseen circumstances, the lender may have not only lost their capital investment; they have lost their interest to be earned from the deal as well. Whilst they could force you through the courts to repay the money and they could recover some of the money through the use of bailiffs, it is hardly an ideal solution.
With unsecured loans and tenant loans, they will probably prefer to run a few checks on you and your financial circumstances first. They will check your citizenship to see how likely it is that you could up-sticks and return to your country of origin once you have received the cheque. It is important that you are a UK citizen.
They will look at your history of residency in your current and previous properties if you have been in the current home for less than three years. Again, they want to know how likely it is that you may move and effectively disappear with their money once you have the cheque.
Employment history is also important because with employment comes income to repay the loan. Regular income and preferably from the same employed over a period of years is desirable with a lender because this shows stability and reduces to some extent, the likelihood of you becoming unemployed in the near future and being unable to repay the loan.
They will also want to check your credit file with one of the large credit reference agencies such as Experian or Equifax to see whether you have borrowed money through other forms of credit in recent times and whether you have kept up the repayments or not. This helps them to understand whether you are likely to default in the future.
Once they have this information amongst other questions that they may ask, they apply a points score to the results and if the score is within a certain threshold figure for that particular lender, they may agree to lend you the money and you can now begin to enjoy the benefits of your loan.
Unsecured loans and tenant loans are pretty straightforward to apply for these days, so just find an online broker and fill in your details on their enquiry form and sit back and relax. They will take charge of the application process and do the vast majority of the work on your behalf. Good luck with your application!
Source : 1888articles.com
Pros and Cons of Payday Loans
Short term instant loans are known as payday loans. These are cash advances that are to be returned with interest on payday. Within a few minutes of applying online the loan will be approved and you will have the cash within a couple of hours.
Short term instant loans are known as payday loans. These are cash advances that are to be returned with interest on payday. Within a few minutes of applying online the loan will be approved and you will have the cash within a couple of hours.
Also known as cash advance or post-dated check loans, the borrower can write out a check that can be cashed in on payday and avail the amount the check is for immediately. To get this instant cash the charge for every USD 100 is about USD15 for 14 days only. Any delays means you need to pay the charges once again.
There are both pros as well as cons to payday loans. These loans are at a high rate of interest and are being marketed aggressively through radio, television, direct mailing, and the World Wide Web.
The plus points are:
• If you suddenly need cash for medical expenses or unforeseen emergencies, a payday loan is the fastest and easiest.
• In a financial crunch, a payday loan can help you pay immediately pending bills so that your credit report remains unblemished.
• The paper work is simple and all they require is you name, address, and bank account information. The procedure for obtaining a payday loan is simple.
The disadvantages are:
• You can avail only small amounts. There are limits, some states permit as much as USD 1000 while in others the maximal permissible is USD 300-400.
• If you do not pay exactly in 14 days and need to take an extension then you may land up paying USD 60 for a loan of USD 100. Payday loans are not recommended if you need a large loan or are unable to pay the amount back quickly.
• Although payday loans enable you to access money quickly, in fact, the rate of interest charged is quite high. In fact, long term credit rates are more affordable.
• Often, the terms and conditions may not be clear and you may land up paying finance charges twice or thrice especially if you allow the amounts to be deducted from your salary itself. You must specify that you want the whole amount of the payday loan deducted not just 25% or so.
A payday loan is actually a cash advance against you next month’s earnings or salary. And, today you can apply for a payday loan by fax or email. It is quick, easy, and instant and will help you tide over a tight situation. However, it is important to avoid rollovers as this is a debt trap. Take a payday loan only if you are sure you can return the whole amount as soon as you get paid.
Source : 1888articles.com
Short term instant loans are known as payday loans. These are cash advances that are to be returned with interest on payday. Within a few minutes of applying online the loan will be approved and you will have the cash within a couple of hours.
Also known as cash advance or post-dated check loans, the borrower can write out a check that can be cashed in on payday and avail the amount the check is for immediately. To get this instant cash the charge for every USD 100 is about USD15 for 14 days only. Any delays means you need to pay the charges once again.
There are both pros as well as cons to payday loans. These loans are at a high rate of interest and are being marketed aggressively through radio, television, direct mailing, and the World Wide Web.
The plus points are:
• If you suddenly need cash for medical expenses or unforeseen emergencies, a payday loan is the fastest and easiest.
• In a financial crunch, a payday loan can help you pay immediately pending bills so that your credit report remains unblemished.
• The paper work is simple and all they require is you name, address, and bank account information. The procedure for obtaining a payday loan is simple.
The disadvantages are:
• You can avail only small amounts. There are limits, some states permit as much as USD 1000 while in others the maximal permissible is USD 300-400.
• If you do not pay exactly in 14 days and need to take an extension then you may land up paying USD 60 for a loan of USD 100. Payday loans are not recommended if you need a large loan or are unable to pay the amount back quickly.
• Although payday loans enable you to access money quickly, in fact, the rate of interest charged is quite high. In fact, long term credit rates are more affordable.
• Often, the terms and conditions may not be clear and you may land up paying finance charges twice or thrice especially if you allow the amounts to be deducted from your salary itself. You must specify that you want the whole amount of the payday loan deducted not just 25% or so.
A payday loan is actually a cash advance against you next month’s earnings or salary. And, today you can apply for a payday loan by fax or email. It is quick, easy, and instant and will help you tide over a tight situation. However, it is important to avoid rollovers as this is a debt trap. Take a payday loan only if you are sure you can return the whole amount as soon as you get paid.
Source : 1888articles.com
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