Tag: APR

It is impossible for anyone to predict about the finance conditions and the stability. You may face the financial insecurity in your hectic routine of your life at any instance of time. It is recommended that payday loan is the supreme alternative for your finance. It will be favorable for you to deplete the financial difficulties where you are going to enjoy the financial benefits in real. There are several online lenders available who deliver the efficient loan services to the borrower.

If you are seeking for an urgent financial solution for a short period of time, then payday loan will be the optimal option that can lead you to improve your finance. It is a perfect finance available for a short period of instance and is also available for you on the right time. Online Payday loans are an excellent option compared to other traditional banks where it is hectic procedures of loan application and very often it gets approved. These hectic procedures of the banks make the customer to trust the banks finance. There are several online payday lenders available in the market.

Online payday loan lenders UK is a quick fix alternative of finance for you to plan short cash help from the lenders. It is available according to the needs of the borrowers as we can plan our repays according to our needs and requirements. It is unsecured short term loans instant accessible loans compared to any other it is available most quickly. This is the reason why payday loans are much popular compared to any other available loans.

It is quite natural that everything has its own pros and cons and payday loan also has its pros and cons. There are lots of pros available if you are looking for a financial backing to bridge the gap between the paydays or need cash in emergency. Online payday loan has made loan procedure short and hassle-less compared to other traditional lenders this lender doesnt ask for documentation or any paper works.

Online application of loan has become the most preferred option by the borrowers because of its simple and hassle-free online application form. Online application form consists of personal informations which refers your credibility to the lender. If you are a person with higher credibility then the lender will offer you several schemes and repayment relaxation for your loan.

The payday loans have several cons too. Payday loans are the higher APR loans compared to any other loans. The interest rates are much higher as compared to other loans. If you are not planned before you apply for any payday loans then you are going to be trapped with the repayments. You need to control your unwanted expenses so that you are able to pay the repayments on time.

Payday Loans are short term loans which are used to cover unexpected and emergency financial crises. But one should not use it to manage long term debt crises. Loss of jobs and the catastrophe due to this should not be dealt with Online Payday Loans. Repayment commitments are not flexible enough to make room for one’s long term income crisis. It is popularly known as Payday Loan or bad credit loan also. But whatever their nomenclatures are, they work on the same credit principles which provide quick access to relatively small amount with a normal repayment period of 15 days.

Repayment is automatically debited from the bank account, with the amount and the interest calculated, on a given date agreed upon through Online Payday Loan Scams transaction. Basic requirements for a quick cash advance loans involve minimal age of 18 years with permanent employment status. An active bank account with direct debit operation facility is also needed.

Besides these, particular lenders have their own eligibility criteria with reasonable restrictions and exclusions. If one shop around, one can easily find a particular lender with custom made terms and conditions that suits one’s credit necessities. Honest and verifiable information should be given to get access to your . Many companies outright reject applications which has doubtful data. Lenders also perform credit check and pertinent information via social security code. So a good credit history is also necessary to be sure of any credit.

For getting approval, one also is aware that loan repayment issues are important aspects. Carefully read the conditions applicable while paying off. Otherwise one can land in an embarrassing situation.What is the interest rate for Online Payday Loans?Payday Loans Online offers liquid cash without putting down any collateral. Legislation of different countries has been keeping vigil on this Instant Payday Loans Online as the interest rate is very much high.

To have control on the excessive and unreasonable interest rate on Payday Loansome jurisdictions have set limit on the APR alias Annual Percentage Rate. Still the interest rate is surmountable if repayment is done according to deadline. But if a borrower misses the deadline to repay the Online Payday Loans then he/she has to pay interest regarding rolling on loan which is as much as 200% sometimes. In USA if an applicant of Online Payday Loan borrows $300 for 30 days, then his payable amount is $375, that suggests Interest of $75, Interest rate (pa) is 1737% APR (variable).

You need a cash advance immediately, but are too shy to ask
relatives or friends, and are scared of the paperwork involved in a bank
loan. Shed all your worries, for help is a mouse click away in the form
of payday loans. Payday loans are one of the most convenient ways of
getting a cash advance today with practically no paperwork or other
hassles.

Defining Payday loans

Payday loans are a short-term
cash advance, when it is needed the most…usually between paydays!
Payday loans are a great way to get some cash to tide you over to your
next paycheck. The goal of payday loans is to assist you with finances
to meet that unforseen requirement. The money is given as a cash advance
and is directly deposited into your personal checking account, after
which the cash advance funds, plus a fee, are taken out of your account
at the end of the loan which usually is your next payday.

However,
a payday loan is no substitute for long-term financial planning. This
cash advance should only be taken to meet urgent financial needs until
your next payday. It is only in emergencies that payday loans come in
handy. Payday loans also bail you out of situations of bounced checks
and late payment penalties by making the appropriate cash advance
available.

Understanding The Cost Of Payday Loans

Forewarned
is forearmed! So it is with payday loans. If you know what this kind of
cash advance will cost you, you will be in a better position to weigh
the pros and cons of opting for it. This way you will also know exactly
what amount you need to pay back to the payday loan companies.

Your
first step should be to find out the best rate of payday loan on offer.
Whichever payday loan company you may choose you must know what will be
the fixed amount that you will owe upon completing your payday loan.

Usually
most payday loan companies charge around $20 to $30 per $100 of cash
advance. To ensure that there are no ambiguities, insist that your final
payday loan amount is spelled out in dollars and cents. This will help
you know what you need to pay, when your payday loan is due.

To
judge the best deal, go for the payday loans company that is offering a
lower APR. Usually, most payday loan companies provide a cost-breakdown
per 100-dollar increments that coincide with the rate.

Furthermore, most payday loan fees are based on the
duration of the cash advance. The standard APR for most companies falls
into the 400 percent range. As an example, suppose you were to borrow
$100 at a fee of $20 for a 2 week period and if you did not pay if for a
year, your service charge would be $520 for a 520% APR. To which you
need to remember to add the original $100 that you borrowed.

There
may be a situation where you are unable to repay the full amount of the
cash advance to the payday loans company. In such a situation, the
payday loans company generally charges the payday loans finance fee and
defers the principal payment over a longer period of time, usually
another 14 days.

The Other Hidden Costs

There are several
hidden costs in a payday loan! Remember, if you are unable to pay this
cash advance and you happen to lose your job, the clock does not stop.
If you default on the cash advance, which includes the principal plus
interest, the payday loan company will reclaim the entire amount plus
all the interest accrued on this loan. A payday loan company may
exercise a number of options to collect this cash advance:

�Sue you for the funds.

�Use a collection agency.

�Enter your details into a bad credit database which may limit your capacity to cash/write a check for commercial purposes.

�File a legal complaint for bounced-check charges that may leave derogatory information on your credit file.

By
now, it should be clear that it is not prudent to go for payday loans
without being aware of the repayment structure. To play it safe, make
sure that the cash advance is repaid on time to the payday loans
company. Read the fine print before you sign the agreement and
understand the worst-case scenarios before deciding to take a payday
loan. Once you understand the costs involved in obtaining a cash
advance, you are a step nearer to fully enjoying the benefits of payday
loans!

A payday loan is a small short term loan you can use to cover
expenditure until your next payday. You can apply online and the
decision to loan you the money is made almost straight away. In most
cases the whole application can be completed online and the money loaned
can be credited into your bank account on the same day as you make your
application.

A payday loan is an unsecured loan, so it is not dependent on collateral, such as you owning a house or car etc.

Generally
when you make your first application you can borrow any amount up to
�300, depending on your take home pay. You are more likely to be
approved the less you want to borrow, so it is advisable to borrow only
what you need. Once you have successfully repaid loans with one
particular company they may then offer to lend you anything up to about
�750 in subsequent loans.

Payday loans can provide a useful solution for short term cash flow problems.

Who can apply for a Payday loan?

In
order to be eligible for a payday loan you must be over 18 years old
and in employment with a take home wage of at least �750 per month. You
must also have a bank account with a valid debit card.

Even if you have bad credit history you should still be able to obtain a payday loan as long as you fulfil the above criteria.

How do you get a Payday loan?

The
majority of payday loans are available online, so there is no delay
with faxing or posting of documents. The application process is quick
and easy to complete. You will be asked for your name, address, details
about your monthly income and employment, when your next payday is,
along with the amount you wish to borrow and your bank account details.

Once
you have submitted your application you should hear back from the
payday loan provider within minutes. They will email you with their
decision to the email address you have registered with your application.

Payday
loan providers partly make their decision as whether to lend you money
dependent on the amount you want to borrow compared to the amount you
earn. Only borrow what you need, the less you borrow the more likely
that your application will be accepted and the smaller the amount of
interest you will accrue.

If your application is successful you
will be sent, by email, your loan agreement showing the amount that will
be lent to you, the repayment date and the amount of interest you will
pay on the repayment date. Along with the loan agreement you should also
be sent loan conditions. These loan conditions should outline your
rights under the Consumer Credit Act 1974 along with details about
repaying the loan, cancelling the loan and the use the personal
information you supply when applying for the payday loan.

If you
are happy to proceed you sign online by providing details of your name
and answering a security question such as your mothers’ maiden name.
Then, email this back to the loan provider and the money will be
deposited into the bank account you registered at the application
process. The money can be deposited in your bank account on the same day
you make the application, so this is a very fast and efficient way of
borrowing money short term.

How do I repay the loan?

You
will need to repay the loan amount and the interest accrued on the
repayment date as specified in the loan agreement. The repayment date is
usually your payday, hence the name payday loan.

The repayment
will be collected by the loan provider by debiting the bank account you
registered at the application process, which is the bank account into
which you get your wages paid.

Repayment over a longer period

Payday
loans may be extended if you find yourself in a position to be unable
to satisfy all or part of the amount due on the repayment date. If this
happens it is recommended that you contact your payday loan provider as
soon as possible and explain your circumstances to them. They will then
be able to explain your options and how to go about extending your loan.

Even
if you are not able to fully settle the repayment amount, it is
advisable to pay off as much as possible on the repayment date. This
will help to keep the amount of interest you owe to a minimum. Some
companies may charge you additional fees for extending your loan, you
should check if this is the case before you sign your loan agreement.

Regulation of Payday Loan Companies

Properly regulated payday loan companies must adhere to strict laws governing the finance industry.

As with any financial product you apply for it is
always advisable to check that the company offering the loan is properly
regulated. The payday loan company you are applying to should show its
Consumer Credit Licence number within its loan conditions and it should
also be authorised by the Office of Fair Trading. If you are in any
doubt as to whether the payday loan company you are considering applying
to is fully regulated then you are within your rights to contact either
of these bodies for further information.

As long as the payday
loan company you are applying to is properly regulated, there will be a
recognised body to make any complaints you may have to and you can be
assured that you will not be subject to any unfair practices.

What are the benefits of a Payday loan?

Fast

One
of the main benefits of a payday loan is the speed at which the cash
can be credited to you. The money you need can be available to you in
your bank account on the same day that you make the application. This
can provide valuable assistance if you have a short term cash flow
problem and need money in an emergency.

Simple

The
application process is very simple, it takes just minutes to apply for a
payday loan and you do not have waste time posting or faxing documents
to the payday loan provider, as you would with other more traditional
high street loans.

Poor Credit History

Payday
loans are available to people with a poor credit history. This is
because payday loan companies do not solely make their decision to lend
based on a persons credit history. As long as you fulfil the application
criteria you have a good chance of obtaining a payday loan. For many
people a payday loan may be the only way they are able to obtain credit,
especially in the current financial climate where the majority of
lenders are unwilling to provide loans altogether, never mind to a
person with a poor credit history.

Use of the Loan Money

You
do not have to tell the payday loan provider what you need the payday
loan for. You can use the money for whatever you want. You may need
money in an emergency which can not wait until payday for instance;
emergency medical or dental treatment, to settle a bill quickly, extra
spending money on holiday or even for a romantic weekend away. The
choice is yours as long as you make the repayment due on the repayment
date.

No Upfront Costs

There are no upfront
costs associated with a payday loan. You do not pay anything back until
the repayment date you have agreed to in the loan agreement.

Why does the APR appear high on payday loans?

The
APR applied to payday loans appears at first glance to be high. This is
very misleading, but there is a simple reason why this figure looks so
high. APR is an Annual Percentage Rate, and as such is calculated over a
whole year (365 days). However, a payday loan is taken usually only
over a number of days or weeks.

The APR calculation was not
designed to apply to very short term loans such as payday loans. It was
designed to apply to long term loans in existence for a year or more. It
is really a theoretical figure than enables people to compare similar
longer term loan products, like mortgages or ongoing credit balances.

Rather
than relying on the APR rate it is more advisable to look directly at
the loan agreement to see exactly how much interest you will be charged
for the period of your payday loan. Some companies have a standard
interest charge for the amount you wish to borrow regardless of the
duration of the loan. It is then up to you to decide whether you will be
able to repay both the cash advance you receive initially and the
interest amount on the repayment date.

To Conclude

Many
people do not have savings or access to credit cards or more
traditional loans and so the convenience of a regulated payday loan
provides piece of mind should the occasion arise that they need some
money quickly.

If you need money in a hurry, can not wait until
payday and are confident that you can make the necessary repayments on
the repayment date, this could be the ideal solution for you.

Overall,
payday loans are convenient, easy to access and offer a viable option
for people who require money quickly for whatever reason.

Online payday loan lenders offer unsecured short-term loans where the borrower isn’t expected to provide collateral for the loan. For this reason, payday loans are considered risky on the lender’s part which makes interest rates and fees on these loans typically high. Although some consumers choose to stay away from this type of borrowing option, others don’t hesitate because they know they can get a payday loan fast and without a credit check.

Unfortunately, there are just some circumstances in life that leave people with no choice but to go ahead with getting an unsecured loan. This is especially true when there are expenses that that are not part of the monthly budget. These expenses could come in the form of emergency vehicle repairs, unexpected hospitalizations, urgent repairs in the house and even unexpected visits from family or friends.

Just as in any decision you make in life, taking out an online payday loan requires some thought. Borrowers should make sure to compare the offers of lenders before getting online payday loans so that they will make informed decision as to which lender can give them the best offer. The reason for this is that payday loan lenders online offer different products and have different interest rates as well as repayment plans.

A lot of payday loan borrowers no longer care about the annual percentage rate of interest (APR) charged by their online payday loan lenders. The reason for this is that payday loans are only for a short duration of time, mostly to be repaid within a one-month period. However, knowing the APR for the loan you are getting is significant so that you will know whether you are getting the best deal from your lender. You see, the APR allows you to see the true cost of the loan you are getting compared to other options you have available.

For instance, if you need $300 for an emergency repair in your home’s sewage system you can consider two options: first, you can take a credit card cash advance with an 18% interest rate and second, you can take a payday loan cash advance for a two-week period with a 15% interest rate. At first glance, it would seem that the payday loan is the better option because the interest rate is lower. However, you have to remember that the loan is only for a 2-week period. In reality, a two-week period with a rate of 15% actually has an APR of 390% (that is 15% multiplied by 26 2-week periods in a year).

Don’t be fooled by the “low interest rates” advertised by online payday loan lenders the next time you find yourself in immediate need of cash. The US Federal Reserve Board require all lenders, including payday loan lenders, to disclose their APRs so take advantage of this regulation and demand for its disclosure at all times because this requirement was placed there by the Board to protect you as a consumer.