A Few Payday Loan Guidelines

How Not to Use Online Payday Loan Services

Online Payday loans are quick and easy sources of money. Unfortunately, there are people who rely on these types of loans way too much; they apply for one every time they are low on cash, instead of waiting for their next payday. If you do not want to go bankrupt in the long run because of an addiction to online payday loans, take these few tips as a guide to preventing a financial disaster:

• You must understand that fast and easy online payday loans should only be used for a cash emergency.  
• Only borrow from one online payday loan company at a time.  
• Check the small print; the most important pieces of information are in there.  
• Rely on a budget, not on a cash advance; create one and stick to it so you can make your repayments.  
• Go to a financial advisor or banker for help; they can help put you back on track to being debt-free.  
• Remember, cash advances are not to be blamed for your human weakness; never let money control you. 

When you finally break free from online payday loan dependence, you will feel much better. It is a hard habit to break, which is more reason to start looking for a more sustainable financial solution for the future.

 

Apply for Payday Loans Online

Applying for a payday loan is as simple as filling out some basic information in a secure online form.  The process can be completed in less than 10 minutes.  There are basically three sections to an application form:

• Personal information (name, date of birth, social security, driver's license number, etc.)
• Contact information (address, phone numbers, etc.)
• Financial information (employment and income information, bank account routing information, etc.)

From here, you create an account with a username and password.  After reading the terms and conditions (which we strongly recommend), submit the form.  The approval process is immediate!

Do you need extra money right now?  It's that easy!

Cash for emergencies

I once attended a money management seminar where the speaker defined "being broke" as living paycheck to paycheck.  Although I may not agree with that definition, the truth is that almost 60% of Americans are living from paycheck to paycheck.  This includes people who are making well over $100,000 a year!  A sudden halt in monthly income would almost certainly be catastrophic.  Furthermore, the very nature of living from paycheck to paycheck means that you are exhausting nearly 100% of your monthly resources.  What do you do in the event of an emergency?  What do you do when you absolutely must shell out money that you can't afford to lose?

A payday loan might be the solution in such predicaments.  There are countless reasons why a person needs anywhere from $100 to $1000 in a hurry.  With a cash advance loan, you simply apply online.  You can have the money in your account on the same day!  Furthermore, payday lenders will offer financing options to help with the repayment process.  Why not give it a chance?  They are there to help you. 

Understanding APR on Payday Loans

One of the common arguments against payday loans is that the percentage rates are too high.  What this argument does not take into consideration is that payday lenders do not apply an APR to cash advance loans.  Annual percentage rates are applied on conventional loans over the course of a year(s).  A typical APR ranges from 0 to 29.

Payday loans are offered on a temporary basis.  There is no point in applying a yearly interest rate on a loan that will only last 2 to 4 weeks.  Instead, cash advance lenders charge flat fees.  Thus, a $100 loan with a $15 lender's fee would equal an APR of about 390%.  This is true if one were to use the following formula:

- 52 (weeks in a year) divided by 2 (period of temporary loan) = 26 (possible fee periods)

- 15 (amount of fee) multiplied by 26 = 390 (total yearly fee)

- $390 divided by $100 = 3.9 or 390% (APR)

When you break it down like that, it's easy to see why the "high APR" debate doesn't really make sense.

Don't let bad credit stop you!

Bad credit shouldn't dictate whether or not a person is entitled to financial help. You can't always plan for unexpected expenses, but they do happen. How is it fair that people are turned away for small, temporary loans because of their credit scores?  What if all you need to emerge from this debt cycle is just a tiny bit of help?

Payday loans can be viable options with high approval rates. Many times the most important factor for being approved is having proof of employment. Cash advance lenders understand that not all credit scores are outstanding. However, they also understand that all people deserve some help.

You ARE entitled to financial help! Could a cash advance from a payday lender be the solution? Why not apply?

You deserve it.

Protection for Military Consumers

Payday loans offered to servicemembers and their dependents must include certain protections, under Federal law and a Department of Defense rule. For example, for payday loans offered after October 1, 2007, the military annual percentage rate cannot exceed 36%. Most fees and charges, with few exceptions, are included in the rate. Creditors also may not, for example, require use of a check or access to a bank account for the loan, mandatory arbitration, and unreasonable legal notices. Military consumers also must be given certain disclosures about the loan costs and your rights. Credit agreements that violate the protections are void. Creditors that offer payday loans may ask loan applicants to sign a statement about their military affiliation.

Cited from FTC Consumer Alert report

How payday loans work

Payday loans are short-term cash loans based on the borrower's personal check held for future deposit or on electronic access to the borrower's bank account. Borrowers write a personal check for the amount borrowed plus the finance charge and receive cash. In some cases, borrowers sign over electronic access to their bank accounts to receive and repay payday loans.

Lenders hold the checks until the next payday when loans and the finance charge must be paid in one lump sum. To pay a loan, borrowers can redeem the check by paying the loan with cash, allow the check to be deposited at the bank, or just pay the finance charge to roll the loan over for another pay period.

Information obtained from CFA.

Using a payday loan to avoid late fees

If you’re running a little behind on your bills, a payday loan may be a better option than paying late fees. Late fees on credit cards and other monthly bills can cost $30 or more. And if your utility or phone service is disconnected, there are more fees to reconnect your service. We recommend that you start by finding out what the late fees are for each of your bills. Then you can compare the cost to determine if a payday loan is a better option.

If you’re running late on bills a payday loan may be a better option, depending on the amount of your late fees and the time you’ll need to repay the loan. We recommend that you look at the cost of all of your options before deciding to get a payday loan.

Cash Advance Loans

Unexpected costs have a way of rearing their ugly heads at the most inopportune times. Most people struggle to simply maintain their monthly finances. A sudden and substantial expense can often be crippling. Situations like these can yield intense stress and financial hardship.

There may be various available solutions, but none are easier than securing cash advance loans.

Cash advance loans (Payday loans) are short-term cash advances you receive from a general financing or specialized payday loan company. Loans can range from $250 to $1500. The money you borrow can be used for absolutely anything! Typically, you agree to repay the loan on or before your next payday. However, there are various repayment options that are specific to a particular payday loan lender.

Who qualifies for a cash advance loan?

• You must be employed or receive regular income from a program such as social security or welfare  
• If employed, you must make at least $1000 per month or $800 if you receive income through a government program  
• You must be 18 years old as well as a citizen of the United States  
• You must have an active savings or checking account that allows for direct deposit 

Signing up is as easy as visiting a payday lender's website, filling out the application, and receiving your money. Why not give it a try?