Luxury brands – Li-Ning USA http://li-ningusa.com/ Fri, 18 Feb 2022 22:46:26 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://li-ningusa.com/wp-content/uploads/2021/10/icon-22-120x120.png Luxury brands – Li-Ning USA http://li-ningusa.com/ 32 32 Best Online Payday Loan Companies for Instant & Same-Day Loans | Guaranteed Loan Approval with No Credit Check [2021] https://li-ningusa.com/best-online-payday-loan-companies-for-instant-same-day-loans-guaranteed-loan-approval-with-no-credit-check-2021/ Fri, 18 Feb 2022 21:58:39 +0000 https://li-ningusa.com/?p=877 Financial hitches seem to always creep up on you when your cash flow is less than favorable. So much so that it’s almost like they can sense dwindling savings. Thankfully, online payday loan companies can cover you during those emergencies. They do this by giving you the financial float you need before getting your next […]]]>



Financial hitches seem to always creep up on you when your cash flow is less than favorable. So much so that it’s almost like they can sense dwindling savings. Thankfully, online payday loan companies can cover you during those emergencies. They do this by giving you the financial float you need before getting your next paycheck.

Now, numerous online payday loan companies have popped up because of how common these unpredictable financial snafus are. Unfortunately, not all of them can cater to your specific difficulty. In fact, some of these solutions are either unreliable or can lead you into even more financial challenges if you’re not careful.

There are alternatives to these online payday loan companies. For example, you should shoot for loans from banks to sort out your situation. But, these usually have stringent requirements that you need to meet to be eligible. Because payday loans are more suited for emergencies, they’re perfect if you’re looking for something that you can get approval for within a day or two. Loans from traditional financial institutions, however, will most likely take more time than you’d like to waste, defeating the purpose.

As such, it might not exactly be the best idea to shun online payday loan companies entirely. Instead, it would suit you better to try to filter between the good and the bad and move on with your life easily. This will require hours of research into various determining factors. Such factors include the companies’ customer feedback, years of experience, and other such intricate details.

But, we completely understand that you’re pressed for time at the moment. Luckily for you, we’ve done all the groundwork and created a list of the best online payday loan companies. So, you hardly need to bother yourself about that. The major thing you need to know is how to decide which lender will give you the best service. And even in that regard, we’ve got you covered. In essence, all you need is to keep reading, and you’ll have the answers you need in no time.

Top 4 Online Payday Loan Companies

  1. Money Mutual – Overall Best Online Payday Loan Direct Lender
  2. Bad Credit Loans – Top Choice for Quick Loans Online
  3. Cash USA – Loan Companies Online for Instant Cash Advance
  4. Personal Loans – Ensures Guaranteed Approval of Same Day Cash Loans Online

Best Online Payday Loan Companies

#1. Money Mutual –Overall Best Online Payday Loan Direct Lender

There are many online money lenders in the market, and Money Mutual decided to carve its niche from this. Instead of offering the loans, the company provides a marketplace to match borrowers with potential lenders.

Established in 2010, MoneyMutual exists to take care of approximately 40% of Americans who find it difficult to fund emergencies. Said emergencies could be anything from medical bills to car repairs and even essential bills like groceries, gas, and rent.

MoneyMutual is in Las Vegas, Nevada, and is a member of the Online Lenders Alliance. This alliance is more of a regulatory authority that ensures its members conduct their business per federal law. It also gets its members to use best practices to ensure clients get the best possible services.

MoneyMutual understands that choosing a loan provider that provides the best rates can be tricky, particularly when your head is preoccupied with an emergency. As such, they have partnered with some reliable lenders. So, you can effectively skip the choosing process. What happens is that the borrower fills a short application form, which takes about 5 minutes to complete.

After turning in your application form, MoneyMutual will redirect you to an interested lender’s website. There, you can access the lender’s terms and conditions. If the conditions are favorable to you, you can complete the application. If you get approval, you can then receive your funds within 24 hours or so.

Like any other financial solution provider, MoneyMutual has basic requirements that potential borrowers must meet. First, the borrower must be an 18+ US citizen and resident. They must also be employed with a monthly income of at least $800. They should also have an active checking account. If you meet all these, you should be able to access loans from $250 to $5,000, depending on your work history.

Highlights

  • Access to a wide range of lenders: Because of the number of online lenders available on the marketplace, borrowers have a higher chance of getting a loan option. Every lender has its criteria for accepting borrower applications, which increases the chances of getting lender approval.
  • Variety of loan options: Besides the instant loans, Money Mutual offers installment loans, payday advances, short-term loans, cash advances, personal loans, etc.
  • Consider borrowers with bad credit: A bad credit score can be limiting, especially when borrowing from a regular financial solutions provider. Money Mutual gives a chance to people of all credit scores to access loans.
  • Return customers don’t have to keep filling the application form: Money Mutual’s website remembers all your content from past applications. You get to bypass the application process, and you will be rerouted to a lender’s website as soon as they confirm your identity.

Pros

  • Short loan application form
  • No application fee required
  • Loan approval in a matter of minutes
  • Access to loans of up to $5000 in 24 hours
  • Access to multiple reliable lenders at once
  • Member of the Online Leaders Alliance

Cons

  • No standard loan terms and conditions
  • Delayed loan releases on non-working days
  • Higher APR than regular loans

⇒Visit the official website of Money Mutual

#2. Bad Credit Loans – Top Choice for Quick Loans Online

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Bad Credit Loans is also an online marketplace for lenders. Its uniqueness stems from the fact that state and tribal lenders collaborated to establish the brand. Having been founded in 1998, the company is one of the longest-serving financial solutions providers to date. Nevada-based Chief LLC owns the company.

As the company’s name suggests, Bad Credit Loans is an equal opportunity lender for all ranges of credit scores. The only caveat is that the loans offered may be a tad more expensive for borrowers with low credit because of their increased risk.

The entire loan application process happens online and starts with an application form to fill in your personal and financial details. You will get a list of lenders depending on the information you provide. You can study each of their terms and find which ones are favorable for you. Once done, you can proceed to complete a more in-depth application with your chosen lender and await approval.

It’s important to note that Bad Credit Loans can’t guarantee that you will get pre-approved for the loan. Even after pre-approval, they still can’t guarantee that your chosen lender will give the final loan approval.

There are a few essential requirements that you need to fulfill before you start. First, you need to be a US Citizen or a permanent US resident. You have to be 18 years and above, have a regular source of income, have an active checking account, and provide valid contact information.

The lenders provide loans of up to $10,000 at rates ranging from 5.99% to 35.99%. Depending on the amount you borrow, you can choose the amount of time you’d need to repay it, typically between 3 months to 72 months.

In the unfortunate scenario that you don’t get any offers from lenders, Bad Credit Loans will provide ads for alternative forms of emergency funding, e.g., for utilities or car payments.

Highlights

  • Financial education: Bad Credit Loans’ website has dedicated an entire website for financial education. This includes how to ensure your information is secure, tips on how to get out of bad debt, and ways of making better financial decisions. They truly want to be a part of a positive financial journey for their clients.
  • Easy application process: There are three basic steps to finishing your application. The good thing is that you get multiple lender options, which gives you autonomy of choice on who you want to borrow from.
  • Access to both tribal and state loans: This makes the marketplace inclusive to everyone. The partnership also allows borrowers with bad credit scores to get access to loans.
  • Focus on data security: Bad Credit Loans emphasizes data security and privacy. The amount of data you share on the platform could put you at risk. The company that understands that and makes an effort to ensure your information is protected.

Pros

  • Up to $10,000 loans
  • You get several lender options to choose from
  • Flexible loan repayment time depending on the amount you borrow
  • Get financial tips as you borrow
  • Get alternative financial solutions if your application is rejected
  • Money deposited electronically into checking account

Cons

  • Tribal loans attract more payment rates than typical payday loans
  • Bad Credit Loans isn’t responsible for the lenders

⇒Visit the official website of Bad Credit Loans

#3. Cash USA – Loan Companies Online for Instant Cash Advance

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Asking for money can be embarrassing, especially if you’re borrowing from friends and family. Moving from one office to the next with a loan application seems like a tedious experience.

Applying for a loan from the comfort of your home can be such a life-saver. Cash USA is yet another lender marketplace that doesn’t discriminate against bad credit scores. The company’s HQ is in Las Vegas, Nevada, and its main aim is to offer a short and seamless loan application process.

The company’s auto-repayment feature is also a big plus. When you’re applying for a loan, you will have to provide your checking account number. So, when the due date arrives, the lender can automatically deduct the loan repayment amount from the account.

The company is big on information security, primarily because of borrowers’ sensitive information shared on the site. The company uses industry-standard 256-bit SSL protection to secure client data.

You can borrow between $500 and $10,000. The APR ranges from 5.99% to 35.99%. Aside from the typical requirements, e.g., legal age and being a permanent US resident, you need to have a regular income of about $1,000 monthly to be legible for the loans.

Money aside, Cash USA also has an educational segment filled with financial management articles to ensure all the info you need to make better financial decisions. The application process begins with an easy-to-fill application form.

After filling, Cash USA matches you with a lender whose terms sync with your credit score and needs. Regardless of what comes, you can study the form and either accept or reject the lender. In fact, you can choose to restart the process to get matched with another lender with better terms.

Highlights

  • Access to alternative financing options: This happens if you don’t get a lender with requirements you can live with. All isn’t lost; you can get other forms of loans to cover your emergency.
  • Loan auto-repayment: Instead of making payments manually every payment cycle, Cash USA has an option to allow your lender to withdraw the payment amount directly from your checking account. All you have to do is ensure that the checking account contains the correct amount to prevent being hit with late payment fees.
  • Data protection: You can feel safe knowing that the data you provide is only used to help you get financial assistance. The information you provide is protected using industry-standard protection methods.

Pros

  • Access to financing within 24 hours
  • Easy to apply and repay with the auto repayment feature
  • Access to educational resources on finance issues
  • Get clearly defined loan repayment conditions
  • Thousands of people have gotten help from the website
  • Funds are directly deposited to your checking account

Cons

  • Loan approval isn’t guaranteed
  • You can only apply from the website; there’s no mobile app

⇒Visit the official website of Cash USA

#4. Personal Loans – Ensures Guaranteed Approval of Same Day Cash Loans Online

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Although Personal Loans also connects lenders with borrowers, the company’s difference comes in the segmentation of loans. You can get financial assistance in different categories through personal Loans, e.g., you can choose a debt consolidation loan, credit repair, or a car repair loan. Their office is located in Roosevelt, Utah.

Personal Loans are also different in that, other than the lenders that have partnered with them, the company can share limited borrower information to third-party lenders if you don’t get approval. This is done in a bid to increase your chance of getting a loan. There’s also a possibility of a lender offering you less than the amount you’re applying for.

Here, you can submit a loan application of between $1000 and $35000, which is a more significant range than the other marketplaces are offering. You’ll start with a short application form, which could then lead to you being matched with a potential lender.

The repayment time ranges between 3 months and 72 months with an APR of about 5.99% and 35.99%. This rate depends on your credit score, your job, repayment history, and where you’re located. Personal Loans prefers borrowers with a good credit score.

Your loan APR rises as your credit score reduces. Both your potential lender and Personal Loans could look into your finances to ensure you’re eligible for the loan. The good thing is that once the lender approves your application, they can deposit the loan into your checking account within 24 hours.

To raise your odds of getting approval, you will either need to be a US citizen or a permanent resident. You also need to provide a social security number and an active checking account.

The minimum age limit for loan applications is 18 years, and you’ll need to prove that you work regularly. Personal Loans has different loan packages, each with a base income requirement and a minimum monthly income requirement from $580.

The lenders may require bank statements for the last three months to gauge your ability to repay the loan. Your credit score plays an important role, but even with a bad credit score, you can get co-signers to help you apply for a loan.

Highlights

  • Get a loan to cater to a specific task: With Personal Loans, you can apply for a specified loan. You have multiple options, including emergency bills, vacations, special occasions, etc.
  • Increased loan amount: Most payday loan lenders offer small amounts of money, but with Personal Loans, you can get a bigger loan amount between $1000 and $35000. Larger loan amounts can help solve a problem without you needing even more loans.
  • Access third-party lenders: Personal Loans has partnered with other lenders to ensure that you still have an option even if their regular lenders can’t offer you a loan. This gives hope, especially to borrowers whose credit score is lower than the minimum requirement.

Pros

  • Mobile-accessible application channels
  • Personalized loans to cater to financial needs
  • Get your loan within a business day
  • Access third party lenders
  • They have several channels to access their customer service

Cons

  • Emphasis on a good credit score
  • The lenders may need to investigate your credit history

⇒Visit the official website of Personal Loans

How We Made This List

The first thing we did was to scour the Internet for popular online payday lenders and create a comprehensive list of as many as we could find. Once that was done, we started eliminating based on the lenders’ best practices, the kind of loans they give, and whether they give amounts that would help get you out of a jam.

We then filtered those left on the list by service variety, experience, customer reviews, and satisfaction. At the end of the elimination process, we had only the four best online payday loan providers in the US. But, if you’re still curious, here are the specific details of what we looked for while creating our compilation.

What We Looked For

  • Professionalism: First, we checked how professional the companies are in terms of website layout, customer support, and service packaging. Additionally, we looked for efficiency in services. We ensured that the companies we chose didn’t have long waiting periods and redundant processes.
  • Customer Satisfaction: Customer reviews tell a lot about a company. So we scoured the Internet for what former customers are saying about their services. We checked what the companies are doing that makes them stand out from the rest. The length of a company’s existence in the market is also a pretty good indicator of customer satisfaction. How? A business without new and returning customers will not stand the test of time. It’s that simple.
  • Transparency: How transparent are the company’s products and services? Do they have a visible interest rate range that is comparable to other excellent loan providers? We also checked whether the companies list their partners. Sometimes lenders don’t mention the companies they work with because they’re shady. Finally, we checked for signs of complaints of hidden costs and fees?
  • Information Security: We eliminated some of these companies simply because they weren’t keen on protecting customer data. You see, getting a loan requires that you trust a lender with vital information that would put you at risk of identity theft. Knowing this, we eliminated companies that haven’t secured their websites and taken steps such as using standard encryption practices on their website. We also investigated whether the lenders share your information with third parties.

Buying Guide: What to Consider Before Choosing an Instant Payday Loan Company

The best payday loan companies offer ways to cover your financial needs before your next paycheck. Like any other loan, online payday loans can be risky for both borrowers and lenders. These lenders take a chance on people of all credit scores, which increases the risk of not getting their money back.

Borrowers also take a high risk of trusting lenders with sensitive information like checking account numbers, social security numbers, and place of residence. This can be dangerous, especially if this information lands in the wrong hands. So how do you ensure you’re borrowing from the right company? This is what to look out for:

Establishing credibility is vital in that a company can earn the trust of its clients. Working with a credible brand enables clients to have a sense of security, mainly regarding financial matters. How do you establish the credibility of an online payday loan provider?

First, study their website. How professional is it? How much conscious effort have they put into making sure that it looks well put together? A credible loan company will have a “terms of service” segment, a clear data privacy policy, a customer service segment, and a clear “About Us” section.

Second, check the company’s partners. Do you know who they are? What is their reputation? Ensure that the company you choose has partnered with big-name companies. This way, you know that they are at least working with trustworthy brands.

Third, are they regulated? In the US, loan providers have to be regulated by bodies and laws such as the Consumer Credit Acts of 1974 and 2006, The Office of Fair Trading, and the Financial Conduct Authority. Some lenders choose to bypass this using the Tribal Land option, which will exempt you from federal protection. Regardless, and at the very least, your preferred company should also be a part of an alliance, e.g., the Online Loan Alliance (OLA).

How long has the lender/organization been in the industry? Lenders who have been in the market long portray stability. They also know how to handle their customers and the products that work for their clients’ best. Experience could also mean that they are well regulated and follow the correct channels, especially when it comes to matters regarding the law.

  • Are they Customer-centric?

Is the lender making an effort to help you get to a good place financially? Do they offer advice? Are there articles helping you with educational content to help you?

The lender should have working avenues to reach customer support. They should have a telephone number, an email address, and physical office locations where you can reach them. There should also be a section where the company addresses the everyday worries that customers face. This also shows that they listen to their customers.

Check out the basic terms they put in place. What are the repayment terms? Check out the repayment time frames, interest rates, and the amount of information you have to share to get the loan. Does the data required sound invasive? Also, check what happens when you can’t repay a loan, is there a grace period offered to borrowers?

Do the lenders offer different product options to cater to different clients? Some clients just need a small amount to fix their car. Others need considerable amounts to consolidate their credit. What are the repayment options?

Some of these marketplaces have offers from different lenders, and then you can choose the lender that works for you best.

Frequently Asked Questions (FAQs)

Q1. How do online payday loans work?

An online payday loan is usually short-term, typically due in two weeks or a month that is usually borrowed to get you out of a financially tough spot. These loans are generally available through lender websites and mobile apps. The loan providers are mostly partnerships between lenders or companies and formal financial institutions to provide customized loans.

These loans usually have an interest rate with a higher interest rate than the average loans ranging from 5.99% to 35.99%. They are more like emergency loans. These loan providers usually cater to borrowers of a low credit score, especially those that would have difficulty meeting the requirements of a regular loan from a bank or other formal financial solutions providers.

For online payday loans, you can get loans from as little as $500 to $35,000. Borrowers can then choose when to repay the amount and how the money will get to the lender. Gracious lenders can even offer you a roll-over option if you don’t get the repayment amount when the time elapses. These roll-over options are usually limited, and you may only get two.

Q2. How can you get an online payday loan?

The first step required to access an online payday loan is access to the Internet. There are many online payday loan providers in the market today, and you should be careful about which one you choose.

The loans usually require you to fill in a short form that provides vital information for the lenders considering you. The next step is being matched to a lender whose products fit your needs.

Payday loans have different requirements. The basic requirements are related to age, income, and residency restrictions. In the case of online marketplaces, the partner lenders may have their own, more stringent requirements so that they can gauge whether you can repay the loan.

The lender could either approve you or not. Once they do approve you, they’ll likely provide you with the funds in less than a day conveniently into your checking account. The repayment process is typically easy, and you can even choose to have the deductions done from your checking account once the repayment term reaches.

Q3. Are online payday loans legal?

There is a thin line between the legality and the illegality of online payday loans. There are several ways of determining whether the lender you’re trying to use is on the right side of the line. First, payday loans are illegal in some states. Even in states where they’re legal, the companies need a license to practice. There are single-state and multi-state licenses, and, as a potential borrower, you need to be vigilant in your research.

There are many payday loan lenders in the digital space and what they do is ensure that their headquarters are located in states where they’re unregulated. Several federal regulatory bodies ensure that lenders do not burden loan consumers with unnaturally high interest rates, hidden fees, and abusive debt collection practices.

Bodies/organizations like the Federal Trade Commission (FTC) and the Office of Fair Trading, and the Financial Conduct Authority perform these tasks. Many state and federal laws protect you as a borrower to ensure that companies do not take advantage of you.

The line is thin because you as a borrower may not know the laws and policies that protect you, and some unlawful online payday loan providers may skirt these laws.

Q4. How can you verify that an online payday loan company is legit?

There are red flags that are easy to identify when trying to gauge whether a company is legit. First, ensure that they are committed to ensuring that your information is secure. Look at the website URL. A company with safety in mind will have “https” in its URL.

Second, ensure that there is a lock before the website’s URL in case “https” is absent. If the lock looks broken, then you should be suspicious. Are they mentioning any data protection practices? If so, read the fine print to ensure they detail what information they protect and how.

The website should also look well-thought-out and well presented. Professionalism is a crucial factor in legitimate companies. How do they advertise their products? If a lending company is offering you an extended grace period before you need to repay the loan, think twice.

What are their contact details, and where is the company hosted? Do they have jurisdiction in your state? Google the company and read their reviews. You’d be surprised at what past customers can reveal.

You can go even further and have a look at the company on Better Business Bureau (BBB). This bureau uses different criteria to grade organizations’ trustworthiness and legitimacy.

Q5. Can online payday loans garnish your wages?

A lender can garnish your wages, but this is under the condition that you have failed to repay your loan, and they take you to court and win. A court can grant the lender a court order, which they’d then present to your employer. This way, your employer can legally withhold a part of your wages and send them to your debtors directly.

Please note that some lenders may threaten you with this course of action despite not having a court of order. These threats aren’t actionable. Ensure to contact your lender for alternative methods once you realize that you may not be able to repay your loan on time. Contacting them will at least prevent you from getting a court summon. You should also appear in court once summoned so that the judge can hear your side of the story.

It’s important to note that your lender can’t contact your employer directly to request a garnish of wages. Also, your employer isn’t obliged to garnish your wages without a court order. However, if it ever happens, be sure to contact your lawyer for legal advice.

Final Thoughts

We have established that getting an online payday loan is beneficial and risky. As such, it is essential to check out other avenues before deciding on this line of action. It’s also an excellent idea to figure out what issue or problem you’re financing. This is important because you really don’t want to get a loan for one purpose and then begin using it for another.

A bad credit score doesn’t mean you’ve lost it all. You can get back on track with the correct financial management practices. If your lender offers free financial advice, take the opportunity. You can also gradually learn how to manage your finances better by reading the articles provided to you by these lender websites.

Choosing the best online payday loan company is also essential. Ensure that you don’t get so wrapped up in financial distress that any loan will do despite stringent requirements and loopholes in your agreement. Ensure you research your lender,

There are other avenues you can try out before going the payday loan way. First, you can try alternative employment means, side hustles, taking up extra jobs, etc. But if you’re okay with the loan repayment terms, and the lender is credible, why not?



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How to Get a Loan for Unexpected Expenses When You Have Bad Credit https://li-ningusa.com/how-to-get-a-loan-for-unexpected-expenses-when-you-have-bad-credit/ Fri, 18 Feb 2022 21:47:56 +0000 https://li-ningusa.com/?p=856 If you’re in a situation where you need to get a loan for unexpected expenses but have bad credit, don’t worry! There are still options available to you. One option is to apply for a payday loan. Payday loans are short-term loans that are designed to help people cover unexpected expenses. They are typically small […]]]>

If you’re in a situation where you need to get a loan for unexpected expenses but have bad credit, don’t worry! There are still options available to you. One option is to apply for a payday loan. Payday loans are short-term loans that are designed to help people cover unexpected expenses. They are typically small loans, and the repayment terms are usually very flexible. Another option is to look into personal loans for bad credit. Personal loans for bad credit are installment loans that can be used for any purpose. The repayment terms on these loans tend to be more forgiving than payday loans, and there are a variety of lenders who offer them.

What is a loan and what are the different types of loans available to borrowers?

A loan is a sum of money that is borrowed from a lender and must be repaid-with interest. There are a variety of different types of loans available to borrowers, including payday loans, personal loans for bad credit, auto loans, and student loans. It’s important to research the different types of loans available in order to find the best option for your needs.

If you’re looking for a short-term loan to cover unexpected expenses, a payday loan may be the best option for you. Payday loans are designed to help people cover unexpected expenses and typically have very flexible repayment terms.

Payday loans are the best option for payday loan borrowers looking to get a short-term solution. PaydayNow is one of the leading companies that provide payday loans to borrowers with bad credit.

How do you know if you’re eligible for a loan?

There are a variety of factors that determine whether or not you’re eligible for a payday loan. To find out if you’re eligible, contact your lender and ask them what the requirements are. If they tell you that there isn’t any requirement to have good credit or collateral in order to qualify, then congratulations! You’ve found yourself an eligible payday loan lender.

If you’re looking for short-term payday loans and have bad credit, it’s important to know that there are still options available to you. Payday lenders typically do not require borrowers to have good credit or collateral in order to qualify for their payday loan products.

What are the benefits of taking out a loan?

There are a number of benefits to taking out a loan, including:

– the ability to cover unexpected expenses

– the ability to consolidate debt

– the ability to improve your credit score

Each type of loan comes with its own set of benefits, so it’s important to do your research and find the best option for you. If you’re looking for payday loans, it’s important to know that payday lenders typically do not require borrowers to have good credit or collateral in order to qualify for their payday loan products.

How to improve your credit score so you can be eligible for better interest rates in the future

Your credit score is a number that’s based on how you’ve handled debt in the past, and it can influence your ability to get new credit or loans with favorable interest rates. If you want better interest rates in the future, there are things you can do now to improve your score! The first step is understanding what goes into determining this three-digit number that lenders look at when they decide whether or not they want to give someone money (and at what rate).

The steps you need to take to apply for a loan with bad credit

If you have bad credit and are looking to apply for a payday loan, there are several steps that need to be taken before your application can be approved. It’s important to know what these steps are so you’re prepared when the time comes! The first step is understanding what goes into determining this three-digit number that lenders look at when they decide whether or not they want to give someone money (and at what rate). The second step is repairing your credit score.

Bad credit payday lenders accept borrowers with bad credit ratings. If you have bad credit and are looking to apply for a payday loan, there are several steps that need to be taken before your application can be approved. It’s important to know what these steps are so you’re prepared when the time comes!

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Can you get a payday loan with a credit score of 550? https://li-ningusa.com/can-you-get-a-payday-loan-with-a-credit-score-of-550/ Fri, 18 Feb 2022 14:25:14 +0000 https://li-ningusa.com/can-you-get-a-payday-loan-with-a-credit-score-of-550/ If your credit score is 550, you can only qualify for a personal loan. However, it is almost impossible to obtain large loans with low credit scores. This means you need to look for alternative financial solutions or improve your credit score. In this article, I will explain various things you need to know about […]]]>



If your credit score is 550, you can only qualify for a personal loan. However, it is almost impossible to obtain large loans with low credit scores. This means you need to look for alternative financial solutions or improve your credit score.

In this article, I will explain various things you need to know about getting a loan with a 550 credit score. Let’s cut to the chase.

What does a credit score of 550 mean?

Generally, anything below 576 is considered bad credit. So a score of 550 does you a disservice. On the contrary, chances are you won’t get good loans with reasonable interest rates and fees.

Bad credit scores can be caused by many factors such as past loan defaults, delinquent accounts, or bankruptcy. All of this gradually leads to a bad credit history, which leads most lenders to stop you from getting a loan. If they offer you the loan, they will charge you huge fees and massive interest rates over a short period of time.

However, all is not lost as you can still get financial aid. As for unsecured and secured loansthe lender can only offer you a loan if they’re sure you’ll pay back every penny, and that’s extremely unlikely if you have a credit score of 550.

How can I get a payday loan with a credit score of 550?

The fact that most lenders prefer a credit score of 600 and above makes it instantly difficult for you to get a loan with a credit score as low as 550. However, there is hope for you because there is lending platforms such as Gday loans with lenders who will grant you a loan regardless of your credit score.

  • Online lenders: A few online lenders don’t do massive credit checks, and you can apply to see if they’ll offer you the loan.
  • Credit unions: Unlike traditional banks, credit unions are different because they are flexible when dealing with borrowers with bad credit. Depending on where you live, you can take the challenge and be a credit union member and hopefully get the financial help you need.
  • Community banks: Like credit unions, community banks require you to be a member or regular user to get a loan agreement. In this case, you’ll need to find out about their loan options, and if you find a community bank employee you know, they might be able to help you get the best deal.
  • Payday Loans: Payday lenders don’t need your credit history to offer you a loan. For example, Gday Loans offers guaranteed approval loans for bad credit applications. However, these loans attract good fees and high interest rates.
  • High Interest Installment Loans: Some lenders offer lines of credit and installments. However, they charge huge interest rates and fees that prevent you from paying on time.
  • Securities lending: Title loans are a great way to get loans because you get an amount based on the value of your car. Once you pay, you get your vehicle. The best part is that you can still drive your vehicle even after getting the loan. The only problem comes when you don’t repay the loan and the lender confiscates your vehicle.

How to Improve Your Credit Score 550

Raising your credit score from 550 takes stamina, composure, and action. It also takes perseverance, as you will have to wait for some time before your credit score increases.

Let’s look at what you can do to improve your credit score from 550:

  • Pay your bills on time: Paying off your bills on time is by far the best thing you can do to improve your credit score. Note that once a bill is due in 30 days and you don’t repay, most creditors will report you to the credit bureaus for late payment. That’s why it’s essential to always pay all your credit bills on time. Once it’s placed in your credit history, make sure it stays there for the next seven years.
  • Lower revolving account balances: If you use a revolving line of credit or a credit card, paying off all of your balances will reduce your credit usage and ultimately improve your credit score. The best part is that it’s fast and accurate so you don’t have to wait long to see significant improvement.
  • Open new accounts only if necessary: If you have a limited number of credit cards, taking advantage of a loan or secured credit card will be essential to boost your credit score. You will just need to settle the repayments on time on your new account so that a positive report is integrated into your credit score. However, do not take out any credit card loans if you doubt your ability to repay on time.

Credit cards are also crucial in saving you insurance money, in addition to securing loans. Skipping bail and renting a house becomes easy because it proves that you are credible and can be trusted to pay your rent on time.

Conclusion

Nevertheless, when you cannot get loans, you will need to improve your credit score. Few things hurt as much as being denied a loan while you’re in a financial crisis simply because you cannot meet the required credit score. Luckily, this article has shown you that you can get some loans even with a low credit score.

But if improving your credit score takes longer and you urgently need money, try it. Gday Loanswhich will connect you to best bad credit lenders in australia.



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Millions of Payday Loan Customers Only Have ONE MONTH to Get Refunds https://li-ningusa.com/millions-of-payday-loan-customers-only-have-one-month-to-get-refunds/ Sun, 30 Jan 2022 08:00:00 +0000 https://li-ningusa.com/millions-of-payday-loan-customers-only-have-one-month-to-get-refunds/ MORE than four million Britons could be in cash debt after taking out unaffordable payday and home loans. Customers of Provident Financial, Greenwood, Flo and Satsuma have just one month to file their claim before the February 28 deadline. 1 Badly-sold payday loan customers have just one month to seek repaymentCredit: Getty You could get […]]]>



MORE than four million Britons could be in cash debt after taking out unaffordable payday and home loans.

Customers of Provident Financial, Greenwood, Flo and Satsuma have just one month to file their claim before the February 28 deadline.

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Badly-sold payday loan customers have just one month to seek repaymentCredit: Getty

You could get refunds for any mis-sold loan, even if you paid off the debt years ago – so it’s worth checking.

Customers can apply for loans from four different brands:

  • Home Loans from Provident
  • Greenwood Home Loans
  • Payday loans through Satsuma
  • Guaranteed loans via Glo

These loans were granted between April 6, 2007 and December 17, 2020, so if you purchased a product between these dates, you may be indebted in cash.

Regulators found that these products were being sold unfairly and that vendors had failed to carry out proper accessibility checks.

Former customers can get a share of a £50million pot, which has been set aside to pay back anyone who wins the case.

But borrowers can still get cash worth hundreds of pounds and if you don’t claim you won’t get anything at all.

If you’re successful, you could also have bad scores removed from your credit report, which is very important because it impacts everything from getting a mortgage to the interest you pay on credit cards. .

Sara Williams from the blog Debt Camel told The Sun: “The provident loans were only meant to be used for short-term borrowing – that’s why the interest rate was so high.

“But Provident did not do proper checks on borrowers. Hundreds of thousands of people have borrowed continuously from Provident for years.

“They have a good chance of having their ‘unaffordable loan’ claim upheld – even if they made all the repayments on time!

“If you win, you’ll get some of the interest you paid back – it’s worth applying.”

Anyone who took out a loan from Provident, Satsuma, Greenwood and Glo between April 6, 2007 and December 17, 2020 may be eligible for a refund.

If the loan was unaffordable, it is worth applying, for example, if you had difficulty with repayments or had to borrow money to keep up with them and got into debt.

The amount you get back will depend on how much you borrowed and for how long.

Your payout will also depend on how many other people successfully claim as there is a set amount of money to share.

Refunds will be issued after the program closes at 5 p.m. on February 28, 2022.

However, the money will not be paid immediately, as each claim must be assessed and the amounts due calculated.

How to request a refund

If you think you received an unaffordable loan from Provident, Satsuma, Greenwood or Glo, you can easily file a claim.

First, you need to go to schema.providentpersonalcredit.com.

You can then complete an online form or make a complaint by calling 0800 0568936. You can also download a form to submit.

Submitting a claim is free as long as you do it yourself, if you use a claims management company they will take some of the money you get back.

You will need a Program ID, which should have been emailed or mailed to you, but you can call the number above if you have lost it.

You won’t need your loan details to make the claim, but you may need to show evidence of defaults or CCJs.

You can find them on your credit report if the missed payments have occurred within the last six years.

If you have more than one product from these companies, you will need to contact the loan provider.

Sara says: “If you think you have 2 accounts – perhaps you have moved or changed your email address, or for some other reason – let Provident know by emailing soa@provident.co.uk .

“If you don’t get a helpful response in a few weeks, call them and ask.

“This is very important. You want a claim submitted for both accounts. And you want your two accounts to be considered one account, not two separate accounts, because that may mean you get a refund most important.”

It’s best to make a claim as soon as possible – just in case there is a problem submitting information close to the deadline.

You can even make a new claim if you’ve already been denied a refund or accepted a small amount.

It was found that the company had rejected too many complaints, so many people who were rejected could still get money back.

Sara advises that you can make a claim if you paid the loan on time, defaulted, or if the loan was sold to a debt collector.

If your loan was sold to a debt collector, Provident will try to buy out the loan and settle it under the program.

None of the four companies are currently lending to new customers and Provident has canceled outstanding home loans as of December 31, 2021.

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Cap on payday loan rates is bad news for those who need it https://li-ningusa.com/cap-on-payday-loan-rates-is-bad-news-for-those-who-need-it/ Thu, 13 Jan 2022 08:00:00 +0000 https://li-ningusa.com/cap-on-payday-loan-rates-is-bad-news-for-those-who-need-it/ Kent Kaiser | The Detroit News Late last year, the so-called “Michiganders for Fair Lending” launched a ballot initiative that would do anything but make lending fairer in Michigan. They named this monstrosity the “Michigan Payday Loan Interest Rate Cap Initiative,” which would likely drive Michigan lenders out of business, hurting working-class Michigan residents. To […]]]>



Late last year, the so-called “Michiganders for Fair Lending” launched a ballot initiative that would do anything but make lending fairer in Michigan. They named this monstrosity the “Michigan Payday Loan Interest Rate Cap Initiative,” which would likely drive Michigan lenders out of business, hurting working-class Michigan residents.

To understand the harm this would cause, one must understand the people who use these products. Payday loans and other short-term loans are small parts of our financial system that help consumers who have seasonal income or do not have access to emergency funds, such as savings accounts, bank loans, home equity loans and 401(k) loans.

Without these resources in the event of a financial emergency, these “underbanked” consumers must resort to more expensive options such as payday or auto title loans, NSF check fees, or nonpayment. bills. Consumers find themselves in this position for a variety of reasons, but the underbanked are often young people, recent immigrants, single parents and minorities.

Many products available to underbanked consumers (including insufficient funds fees and short-term loans) are criticized for their high cost, in part because of their high annual percentage rates (APRs). The problem with APR is that NSF fees and payday loans don’t last a year.

When people take out these loans, their intention is to pay them back in days or weeks, not months and certainly not a year or more, so the very concept of judging them based on their annual percentage rate is not not only absurd, but it also hides the true cost of these products.

Think about it: if Aunt Ronda lends you $100 today and you pay her $101 tomorrow after your paycheck is paid, that would be a good deal for you, right? You could avoid overdrafting or bouncing checks. That $1 could save you hundreds in bank charges.

Not according to the Michigan group: according to their view, your affordable short-term loan carries an APR of 365%. Suddenly, sweet old Aunt Ronda is a loan shark.

We don’t have to guess what will happen to Michigan if this law passes: After Oregon passed a rate cap, bank overdraft fees and late bill payments increased while the situation Oregon Residents Overall Financial decreases.

In Georgia, a price cap has led to increases in bankruptcy rates, bad checks and Federal Trade Commission complaints. And a 2018 World Bank study found that rate caps lead to negative side effects, including the loss of credit options for many underbanked consumers.

Michigan residents are right to think creatively about how to address the plight of consumers who are financially on the margins. Underbanked consumers earn less and save less, on average. However, the majority of these consumers are also happy with the products they use and use them responsibly.

Thus, a policy meant to “protect” a few irresponsible or unhappy consumers from themselves would likely harm many more consumers and drive them to use less affordable alternatives.

Short-term loans are an affordable and attractive form of credit in times of financial crisis. If you think Michigan residents should avoid pushing your neighbors into untenable financial situations, and you find a rate cap issue on the ballot next year, you should vote “no” on it.

And before that, if you are asked to sign a petition regarding a price cap, you must refuse the request.

Kent Kaiser is Secretary/Treasurer of the Domestic Policy Caucuswhose mission is to support transparent public conversations on critical political issues at the local, state and federal levels, to educate voters on the issues that will have the greatest impact on their community, and to support community members in their dialogue with elected officials on these issues. critical political issues.



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Reasons you might need to apply for a payday loan https://li-ningusa.com/reasons-you-might-need-to-apply-for-a-payday-loan/ Sat, 18 Dec 2021 08:00:00 +0000 https://li-ningusa.com/reasons-you-might-need-to-apply-for-a-payday-loan/ There are many reasons a person may need to apply for a payday loan. Payday loans, or short-term loans, are easily accessible loans that don’t require a particularly high credit score to get. If approved, they can be paid in hours. They are a favorite among borrowers, due to their convenience. Taking out a loan […]]]>



There are many reasons a person may need to apply for a payday loan.

Payday loans, or short-term loans, are easily accessible loans that don’t require a particularly high credit score to get. If approved, they can be paid in hours. They are a favorite among borrowers, due to their convenience.

Payday_Loan.png

Taking out a loan and not paying it back can hurt your credit score, so make sure you’re able to repay your loan if you’re approved, so borrow sensibly and for the right reasons.

This article will tell you some common reasons why people apply for payday loans:

Redundancy

Due to the COVID-19 pandemic, global unemployment is at an all-time high. Losing your job can be devastating, especially if you have a family and other responsibilities. Many people take out loans when they are laid off, to support them until they are financially stable again. According to a company that offers payday loans in Lacombe, Alberta, if you’ve used up all your money and have nowhere to go, a payday loan company might be your best option. That said, some lenders may not lend to you if you don’t have a job because you may not be able to repay the loan.

Debt Consolidation

Some people take out loans to pay off other loans or debts. If you are heavily in debt, you may consider taking out a loan to pay it off. This may sound counterproductive, but it’s actually a very good idea. While you’re still in debt, you can clear all of your current debt and then repay your loan on a flexible repayment schedule. If you’ve been owing money to a lender for a while and they’re threatening you with court, additional interest, and debt collectors, then a payday loan is definitely something to consider.

Friends and family

In difficult times, the first people called upon are his family and friends. Unfortunately, asking family and friends for money can be very uncomfortable and strain your relationship. Instead of borrowing from your relatives, you can take out a personal loan. Although you will have to pay interest, you will be able to avoid awkward conversations and make your loved ones uncomfortable.

Holiday loans

After a year of confinement, we all need a good vacation. If you want to give your family a vacation, but can’t afford to pay for it all at once, you might consider taking out a loan. Holiday loans are very common. If you’re planning on taking out a vacation loan, try to take out a loan and pay for your vacation well in advance. This will allow you to get your flights cheaper and allow you to take out a smaller loan. If you wait a few weeks before flying, you may need to take out a very large loan.

Building loan

In addition to relieving you of financial uncertainty, payday loans can also help you build your credit score. When you have bad credit, it can be difficult to get credit cards, mortgages, and other big loans. Payday loans, as we mentioned earlier, regularly accept people with bad credit. This means you can use a payday loan to boost your credit so you can borrow larger amounts from other lenders. It’s definitely worth building your credit, even if your credit is currently good. It can always be better.

Vehicle repairs

You can never predict when your car is going to break down. If you don’t have a lot of spare cash, you might be unable to pay to have your car repaired if it breaks down. A payday loan can ensure that you are covered should this be the case. Since payday loans are usually repaid the same day they apply, this means people can get their car fixed and back on the road quickly.

pay bills

If you haven’t been paid enough this month or have had to miss work, you can take out a payday loan to pay off your bills. Most people’s bills are under $300, which means you won’t have to pay much interest if you spread your payments over several months. This will allow you to pay your bills and avoid payment defaults. You should always pay your bills on time. If you don’t, your gas and energy suppliers may start charging interest to your account.

Paying_Bills.png

Mortgage repayments

As we mentioned earlier, sometimes people take out loans to pay off other loans. This often happens with mortgage repayments. If a person is unable to work for a month and has no savings, it may mean that they are unable to pay their mortgage. Taking out a loan can be a great solution to this. This can allow people to get their mortgage payments under control and avoid falling into default, which could lead to them losing their homes. Mortgage repayments can be very expensive, especially if mortgage rates are not fixed.

Medical emergencies

If you live in a county where health care is not paid for by the government, such as in the UK, a loan can be very useful in the event of a medical emergency. This is especially true if you don’t have health insurance. Medical bills can cost an absolute fortune. If a person is unable to pay their medical bills, it may mean they cannot get life-saving treatment. A payday loan can help pay your medical bills and ensure you get the treatment you need. Remember, though, that most payday loans are capped at around $10,000.

There are many reasons why people take out payday loans. In this article, we have barely scratched the surface. In the end, anything that lets you down and prevents you from paying for something you need is reason enough to take out a payday loan.



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93% of payday loan borrowers regret taking their loan, survey finds https://li-ningusa.com/93-of-payday-loan-borrowers-regret-taking-their-loan-survey-finds/ Mon, 06 Dec 2021 08:00:00 +0000 https://li-ningusa.com/93-of-payday-loan-borrowers-regret-taking-their-loan-survey-finds/ Payday loans can be a debt trap for borrowers who cannot afford to make payments. Here’s how you can pay off your payday loan balance before it’s sent to debt collectors. (iStock) Payday lenders prey on borrowers with bad credit who desperately need money, trapping them in a cycle of high-interest, hard-to-pay debt. The vast […]]]>



Payday loans can be a debt trap for borrowers who cannot afford to make payments. Here’s how you can pay off your payday loan balance before it’s sent to debt collectors. (iStock)

Payday lenders prey on borrowers with bad credit who desperately need money, trapping them in a cycle of high-interest, hard-to-pay debt.

The vast majority (93%) of borrowers regret taking out their personal loan, according to a new survey from DebtHammer. Only 1% of respondents said their financial situation improved after taking out a payday loan, while 84% said it got worse.

Payday loans allow consumers to borrow small, short-term cash loans without a credit check. But the typical repayment term is only two weeks, leading 4 out of 5 borrowers to take out a new personal loan to pay off their current debt, Consumer Financial Protection Bureau (CFPB) reported.

It is possible to get out of payday loan debt without renewing your loan and incurring additional fees. Keep reading to learn how to break the cycle of payday borrowing, like consolidating debt with a personal loan. You can compare debt consolidation loan rates on Credible for free without impacting your credit score.

BEST SHORT-TERM LOANS: COMPARE YOUR OPTIONS

3 ways to get out of a personal loan

The average cost of a payday loan equates to an annual percentage rate (APR) of almost 400% – in other words, borrowers who keep renewing their payday loans could pay 4 times the amount they originally borrowed over the course of a year.

Payday lenders may trick you into thinking that renewing your loan is the only way to pay off your debt, but that’s not the case. Here are some alternative ways to break the cycle of payday loans:

  1. Debt consolidation loans
  2. Extended payment plans
  3. credit advice

Learn about each repayment plan in the sections below.

3 THINGS YOU SHOULD NEVER DO WITH YOUR EMERGENCY FUND

1. Debt consolidation loans

Personal loans are lump-sum loans that are commonly used to consolidate higher interest rate debt, such as payday loans. They come with fixed interest rates and repayment terms, which means your monthly payments will be the same while you pay down your debt.

These debt consolidation loans are usually unsecured, meaning you don’t have to provide any assets as collateral. Because they are unsecured, lenders determine your interest rate and eligibility based on your credit score and debt-to-equity ratio.

Well-qualified borrowers can benefit from a low rate on a personal loan for debt consolidation. Personal loan rates are near all-time lows, according to the Federal Reserve, with an average of 9.39% in the third quarter of 2021.

Some credit unions also offer small Alternative Payday Loans (PALs), which allow members to borrow up to $2,000 with an interest rate capped at 28%. However, these loans can be difficult to find because only a small portion of credit unions offer PALs.

You can see if you qualify for a debt consolidation loan on Credible with an indirect credit check, which won’t affect your credit score. Use a personal loan calculator to estimate your monthly payments to see if this option can help you get out of payday loan debt.

CREDIT CARD INTEREST RATES ARE RISING NEARLY ALL TIME, FED DATA SHOWS

2. Extended Payment Plans

An Extended Payment Plan (EPP) allows payday loan borrowers to pay off their debt over a longer period than the typical two-week repayment term. Many states require payday lenders to offer PPE, so you’ll need to research your state laws to see if you qualify.

Some payday lenders may offer EPRs whether or not they are required by law to do so. The lenders belonging to the Community Financial Services Association of America (CFSA) are required to offer EPPs to borrowers, but other financial institutions may not offer this option.

HOW LONG DO NEGATIVE ITEMS STAY ON YOUR CREDIT REPORT?

3. Credit counseling

Non-profit credit counseling agencies offer free or low-cost services to borrowers who are struggling to manage their debt. One such service includes enrolling payday loan borrowers in a debt management plan (DMP).

As part of a DMP, a credit counselor will help you create a debt repayment budget and schedule. Credit counselors may be able to help you negotiate with payday lenders to lock in a lower interest rate or reduce the loan amount.

You can see a complete list of certified non-profit credit counselors on the justice department website. If you still have questions about payday loan debt relief, learn more about debt consolidation by contacting a knowledgeable loan officer on Credible.

BORROWERS WHO CONSOLIDATE CREDIT CARD DEBT CAN SAVE $2,000+ ON AVERAGE, DATA SHOWS

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.



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Survey: 90% of borrowers regret having taken out a personal loan https://li-ningusa.com/survey-90-of-borrowers-regret-having-taken-out-a-personal-loan/ Wed, 01 Dec 2021 08:00:00 +0000 https://li-ningusa.com/survey-90-of-borrowers-regret-having-taken-out-a-personal-loan/ DebtHammer.org results show 80% say their short-term loan has made their financial situation worse instead of helping it Low-income households find saving impossible, but with the right strategy, it is possible to build an emergency fund that can ward off the need for payday loans. – Dr. Robert H. Scott III, Professor at Monmouth University […]]]>



DebtHammer.org results show 80% say their short-term loan has made their financial situation worse instead of helping it

Low-income households find saving impossible, but with the right strategy, it is possible to build an emergency fund that can ward off the need for payday loans.

– Dr. Robert H. Scott III, Professor at Monmouth University

AUSTIN, TEXAS, USA, December 1, 2021 /EINPresswire.com/ — Payday loans are a common source of quick cash for low-income borrowers in the United States

They’re so popular that there are about 23,000 payday lenders across the country, double the number of McDonald’s restaurants in America. Lending is lucrative for payday lenders—it’s a $9 billion industry—but expensive for borrowers. The national average annual percentage rate (APR) is 400%, but that’s just the beginning. Most borrowers cannot afford to repay the original loan, which can trap them in a cycle of long-term debt.

And that leads to long-term regret. How much? To mark International Banking Day on December 4, DebtHammer.org decided to learn. We surveyed more than 250 Americans from September 8-14 to study the impact of payday loans on borrowers.

Here are the main results:

They do not improve financial well-being: more than 90% of respondents said they regretted taking out their original loan. About 80% of respondents said their payday loan left them worse off than before they took out the loan. This can be especially troubling in cities with payday loan issues.

Borrowers don’t use them for emergencies: Only 23% of respondents said they used the money to cover a sudden, unexpected expense, such as a car repair or a medical bill. The majority used them to cover day-to-day expenses like groceries, credit card bills, utility bills, rent or mortgage, gas or prescription drugs.

Short-term loans don’t help in the long run: About 65% of respondents said they had to avoid paying another bill to pay off their loans. This is particularly troubling given that a previous investigation by DebtHammer revealed that 58% of Americans expect to take out a payday loan or other short-term loan to pay for their holidays.

Read the full report at: https://debthammer.org/payday-loans-survey.

DebtHammer is an industry leader in the fight to get Americans out of debt.

Please email media@debthammer.org for more information or to schedule a phone or video call with DebtHammer Founder and CEO Jake Hill.

Feel free to embed any of the visuals included in the report on your website, or use or modify the raw files as needed. Complete datasets are available upon request.

Expert advice:

What do you think is the biggest financial challenge facing Americans right now?

Many Americans continue to struggle with the lack of savings. The COVID pandemic has added additional factors and we are now increasingly aware of the relationship between financial health and physical health which is still poorly understood. Plus, there’s a lot of uncertainty as benefits expire and it’s hard to know what comes next.
Dr Matthew Harding
Professor of Economics and Statistics and Director of the Deep Data Lab, University of California, Irvine (answers are in collaboration with Professor Giacomo De Giorgi, Director of the Institute of Economics and Econometrics at the Geneva School of Economics and Management, University of Geneva. )

Many Americans are struggling to get out of debt. In your opinion, what should they prioritize?

The cycle is an existential threat to their livelihoods. They must end it or they will be annihilated. It gets worse over time, so stopping it as soon as possible is essential. People tend to rationalize bad financial decisions and keep making them to justify those rationalizations. It’s best to just recognize a mistake – we all make one – and then decide what’s the best way to move forward. Of course, for many people, they may be fully aware of their situation but feel powerless to do anything about it.
Dr Alexander Brown
Professor, Department of Economics, Texas A&M University

Rebecca Stumpf
DebtHammer.org
write to us here



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What is a payday loan? https://li-ningusa.com/what-is-a-payday-loan/ Wed, 17 Nov 2021 08:00:00 +0000 https://li-ningusa.com/what-is-a-payday-loan/ Payday loans provide a quick influx of cash, but should be considered options of last resort. You could pay interest rates equivalent to 400% APR or more with payday loans. Alternatives include local nonprofits, churches, family members, and personal loans. Learn more about Personal Finance Insider loan coverage here. Loading Something is loading. Payday loans […]]]>



  • Payday loans provide a quick influx of cash, but should be considered options of last resort.
  • You could pay interest rates equivalent to 400% APR or more with payday loans.
  • Alternatives include local nonprofits, churches, family members, and personal loans.
  • Learn more about Personal Finance Insider loan coverage here.

Payday loans are advertised as quick and helpful ways to get cash to cover an unexpected expense. However, payday lenders can often use predatory practices to trick borrowers into accepting loan terms that seriously damage their long-term financial health.

What is a personal loan?

A payday loan is a short-term, high-cost unsecured loan with principal as part of your next paycheque. Payday loans are often for small amounts of money, usually $500 or less. Payday loans provide immediate funds, have extremely high interest rates and are generally based on your income.

Payday loans are usually repaid within two to four weeks, and you can get them from a physical payday lender or online. Lenders usually don’t do a full credit check or consider your ability to repay the loan.

Different states have different laws regarding payday loans; some states ban payday loans entirely, while others cap the interest rates lenders can charge.

You might be put in a situation where you feel like you need to take out a high-interest loan to cover an expensive medical bill or rent check, but you should try to avoid payday loans whenever possible. possible.

With exorbitant interest rates, payday loans can end up costing more than you originally borrowed and can trap you in a cycle of debt. Additionally, payday lenders often target low-income minority communities and convince them to agree to confusing loan terms.

What are the disadvantages of a personal loan?

What are the alternatives to payday loans?

Local nonprofits, churches, family members, personal loans and even some credit cards are better options for emergency relief funds than payday loans, said Graciela Aponte- Diaz, director of federal campaigns at the Center for Responsible Lending.

“What we’ve seen in states that don’t have payday loans is that there are various resources to help people in times of emergency or hardship, but they’re marketed in states that have predatory lending,” Aponte-Diaz said.

Before you find yourself in a situation where you’re considering a payday loan, you might consider setting up an emergency fund to cover three to six months of living expenses, if possible.

You can find more personal loan alternatives to payday loans with our lists of the best small personal loans and the best personal loans for bad credit.

Consider all the alternatives you have to payday loans before deciding to get one, as they come with a lot of risk.



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State law causing payday loan stores to close https://li-ningusa.com/state-law-causing-payday-loan-stores-to-close/ Thu, 04 Nov 2021 07:00:00 +0000 https://li-ningusa.com/state-law-causing-payday-loan-stores-to-close/ “Out of business.” This sign is nothing new in the last 18 months. Thanks to the coronavirus pandemic, sales for many merchants have dried up, doors have been closed and employees have been laid off. But across Illinois, a state law passed earlier this year closed hundreds of certain types of stores, including at least […]]]>



“Out of business.” This sign is nothing new in the last 18 months.

Thanks to the coronavirus pandemic, sales for many merchants have dried up, doors have been closed and employees have been laid off.

But across Illinois, a state law passed earlier this year closed hundreds of certain types of stores, including at least one in Evanston. And that’s exactly what many lawmakers and consumer advocates wanted to happen.

The companies in question offered payday loans and other high-interest short-term loans that critics say kept borrowers trapped in an endless cycle of debt. They can’t pay it all back, these reviewers say, so customers end up borrowing even more.

The term “personal loan” refers to the usual length of the loan, about two weeks, the time between paydays for many borrowers. Payday loans require full repayment on the due date, plus borrowing costs. There are also short-term loans where a borrower’s car title is held as collateral and short-term installment loans, which allow repayment over a longer period than payday loans.

Amounts borrowed are typically a few hundred to a few thousand dollars, from customers who often have subprime credit ratings, making it unlikely that a bank will transact with them.

Kesha Warren, from the southern suburbs of Holland, says she borrowed $1,250 on a car title loan to help keep her business afloat, but ended up owing not only the principal, but also $4,200. $ in interest and fees, according to a video produced by the Chicago Community Trust, an organization promoting interest caps on such loans.

Charla Rios, a researcher with a national group, the Center for Responsible Lending, says payday loans and similar instruments “cause far more harm than good.”

Before Illinois passed its predatory lending prevention law, payday loans and other short-term loans could reach an annual percentage rate of 404%. The new law caps those rates at 36% APR, consistent with similar legislation in 17 other states and the District of Columbia.

Even 36% is more than double what someone with bad credit would pay for a car loan, according to US News & World Report, although car loans are generally for much higher amounts borrowed with longer repayment periods. long.

In addition to impacting payday loans and auto title loans, Illinois’ interest cap law also affects installment loans from online lenders.

National organization representing online lenders says consumers are actually being harmed by Illinois law, with fewer borrowing options available to those who may not qualify for money from a bank , savings and loan or credit union.

Andrew Duke, executive director of the Alliance of Online Lenders, calls the law “a solution in search of a problem”.

A federal consumer agency, he says, saw just 1% of complaints from the public in 2020 about personal loans.

“These data,” says Duke, “indicate that customers generally don’t have problems with small loan products.”

“Rate caps,” Duke adds, “do not reduce the cost of credit, but rather access to credit.”

Lenders also say that the emphasis on the annual rate can be misleading because while 300-400% is the annual rate and may seem extremely high, the actual amount repaid for a small loan is relatively low if the loan is repaid at time. For example, before the new Illinois law took effect, the fee to borrow $100 was $15.50 for a two-week loan.

But supporters of the law say borrowers often cannot meet the due date, the loan is rolled over and the customer is buried in ever-increasing debt. Or, the customer repays the loan on time, to borrow again a few weeks later.

Brent Adams of the Illinois-based Woodstock Institute, a liberal policy study group, says borrowers initially feel they will be able to repay, say, $500 on time.

But, he says, “research shows that a pitfall is more common than not” because the borrower cannot meet the due date and must extend the loan, “buying more time with new added fees. The average payday loan borrower,” says Adams, “renewes the loan often”

Duke of the Online Lenders Group says short-term, low-dollar loans can be a much better alternative to missing bill payments, piling up credit card debt, or even filing for bankruptcy.

When lending volume declines, Duke says, “other harmful options rise.”

He says the interest cap in Illinois will force many online lenders out of business here because it would be impossible to make a profit.

“I suspect there’s been quite a significant pushback,” he says.

But critics say high interest on such loans can cause the exact same problems, like missing other payments or ultimately heading to bankruptcy court.

One of the driving forces behind the Illinois law was the Legislative Black Caucus.

Adams of the Woodstock Institute says payday loan stores are typically located in low-income minority neighborhoods.

According to the State of Illinois, more than half of short-term, high-interest borrowers earned less than $30,000 a year, during 2012-2019. The value of transactions during this period was nearly $7 billion.

“These products,” says Adams, “almost with surgical precision target black and brown communities.”

Although Evanston has a large population of all races, it is primarily an affluent community with less appeal to brick-and-mortar payday loan stores, even before the new Illinois law. .

AmeriCash Loans, at 1801 Dempster St. closed a few months before the new state law took effect. (Google Maps image from November 2018.)

In fact, nine years ago, Evanston City Council limited the location of payday loan stores to a handful of commercial areas. The three such stores at the time did not have to relocate, but any new stores would have been limited to the few locations.

There are several financial education programs available in Evanston, for consumers hoping to learn how to better manage money, or perhaps lack thereof.

The City plans to renew a program with First Northern Credit Union, which has been suspended due to the coronavirus pandemic. The local YWCA, as well as Wintrust and Byline banks also offer similar offers.

The Interest Cap Act has had a significant impact on the short-term lending industry in Illinois. A state study found there were 1,578 licensees offering short-term loans of various types and terms at the end of 2019.

According to Adams of the Woodstock Group, 75% of them had closed by last July.

And Evanston, it seems, may not have any more. A search using Google Maps shows that most of what were once listed as payday loan stores are gone.

And what may have been the last, at 1828 Dempster, is also empty. An employee of the nearby check-cashing business told Evanston Now that the payday loan shop closed four to six months ago, shortly after the rate cap came into effect. Illinois interest.



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