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Comparing Cash Advances Online

Posted on: February 17th, 2008 by Local Cash Advances

Compare Cash Advances Online

One of the most important things to do prior to obtaining a payday loan, is to compare the rates of cash advance lenders. There is a lot of information online that will help you get the lowest rates on your cash advance loans as well as the best rates. If you are ready to, you can Compare Cash Advance Loans here.

How to Compare Cash Advance Loans

Look At the Cash Advance Rates

The easiest way to compare payday loan lenders is to look at the interest rates of all available lenders. The Truth in Lending laws require that payday loan and cash advance lenders disclose their APR rates to any interested party. You can usually find these rates on the cash advance lender’s website as well as via email. Make sure you request a rate that is specific to your loan and not just the average or base-rate APR.

Compare Cash Advance Fees

In addition to the interest charge, most lenders will tack on fees proportionate to the size of the loan. There are several different type of payday loan fees including a flat financing charge, a processing fee, and delinquency fees (which are charged in the event that you default on a payment). These fees are usually available on the payday loan website for quick comparison.

Contact the Cash Advance Lender’s Customer Service

Chances are that you are requesting your cash advance in a time of emergency and may feel rushed to take the best payday loan possible. However, making sure that the company has good customer service and support is a crucial part of the comparison process. You should ideally be able to reach a representative via email, telephone, fax, or in some cases, instant message. This will allow you to quickly reach someone if a situation arises where you won’t be able to pay back your cash advance on time. Additionally, this is useful if you need help during the application process or are unclear of any of the cash advance terms.

Expect An Easy Cash Advance Application Process

When requesting a cash advance online, you should expect the process to be very quick and easy. The entire process should only take a few minutes and no fax should be required. You will only need to supply the cash advance lender with your contact and employment history, and you should expect the cash advance to be deposited into your account the following day (if it is approved, of course).

If you are ready to begin comparing cash advance rates, visit our Comparison Page for our Top-4 Cash Advance Lenders.

Bad Credit and Need Money? Try a Cash Advance.

Posted on: February 11th, 2008 by Local Cash Advances

Bad Credit Cash Advances

Because of the recent downturn in the economy,cash advances and payday loans have made it easy for anyone to get instant cash when they need it. Anyone in the US can apply for these loans and most will come delivered to your door or wired to your checking account. But what about those of us that have bad credit? Can they still benefit from cash advances and payday loan? Fortunately, the answer is still “Yes.” In fact, cash advances are very simple to obtain - for just about anyone. The following will walk you through what you need to know about payday loans for people with bad credit.

Cash advances or payday loan are basically just signature loans and are not secured in any way. This means that you do not have to put up collateral in order to get one and they do not require a credit check. You simply need a signature, and a couple of proofs of employment.

Because it is just a signature loan, your credit level is pretty much arbitrary to the lenders. All you have to do is meet their basic criteria of:

Maintain a job or a regular source of income
Have a monthly income is at least $1000
Have an active checking or savings account
Be at least 18 years old as well as a United States Citizen

This means that your credit rating is not even checked. If you do have subprime credit then you will want to get a cash advance only from a lender that does report to the three credit bureaus (Equifax, Transunion, Experian). Therefore, by paying the loan off on time, it will help to improve your credit rating whenever you take out a payday loan.

Payday loans can be obtained for up to $1,500 and can be taken out for any reason. They are often made available for you withing 25 hours and in some cases, can be available withing 30 minutes. Because the interest rate on a payday loan is very high, you will not want to make it a habit of obtaining a cash advance. The typical rate is about 30%, or $30 for every $100 you borrow. If you need a significant amount of money, such as for an automobile or house purchase, you will not want to use a payday loan to do so. However, if you need money in a pinch and are able to pay it back next pay period, then payday loans are the way to go.

To repay your payday loan, you will need to either sign over your paycheck or have the money withdrawn from your checking account. This is all information that will be worked out when you apply for the loan. If you choose the checking account option, then you will give the lender your bank routing information and permission to withdrawn the funds in two weekd.

Finally, you will have the option to rollover the loan after the two week period is up. However, this will double your original interest rate. All payday loan and cash advance stores will report unpaid loans and you will most likely be banned from using their network of providers again. This is why you want to pay back your payday loans as quickly as possible to avoid both the high interest rates and possibility of losing this source of money.

If you are interested in Comparing Cash Advances Online, visit our Online Cash Advance Comparison page and apply for your loans online.

What is a Payday Loan? A Quick and Dirty Definition.

Posted on: February 10th, 2008 by Local Cash Advances

A payday loan is a small, short-term loan (typically up to $500) without a credit check that is intended to bridge the borrower’s cashflow gap between pay days.

The loan is typically given in cash and secured by the borrowers post-dated check that includes the original loan principal and accrued interest. The maturity date usually coincides with the borrowers next pay day. On the maturity date the lender processes the check traditionally or though electronic withdrawal from the borrower’s checking account.

Payday loan providers are sometimes compared unfavorably to loansharks due to their higher interest rates (300% APR and more), but in most states payday loans are legal. Those who take payday loans are often perceived as being members of a lower socio-economic demographic who have few options other than such loans. Some argue that, like credit card companies, payday lenders take advantage of the poor and those who do not understand the time value of money.

Defenders of the higher interest rates note that payday loan processing costs don not differ much from their higher-principal, longer-term counterparts such such as home mortgages. They argue that conventional interest rates at these lower dollar amounts and shorter terms would not be profitable. For example, a $100 one-week loan, at a 20% APR (compounded weekly) would only generate 38 cents of interest, which would fail to match loan processing costs. They also argue that the interest on a payday loan is less than the costs associated with bounced checks or late credit card payments.

Most mainstream banks have not entered the payday loan business, but many offer a variation called a “direct deposit advance” which is a payday advance for those who receive direct deposit.

Payday Loan & Cash Advance State Reform Laws

Posted on: February 10th, 2008 by Local Cash Advances

In the past several years, the amount of payday loan lenders has sky rocketed. More payday loan lenders have developed because of the profitable return rate on their short term loans. Since the service is so convenient, many companies have cashed in on the idea of payday lending. However, the rapid growth in lenders has caused Congress to enforce laws to prevent payday loan companies from taking advantage of their vulnerable customers.

First, the government pushed for states to put caps on interest rates. However, several states deregulated the caps in fear of lenders moving out of state. Although the caps seemed beneficial to consumers, many lending companies were including hidden fees into the loans. This caused a reform, which balanced Congress’ intervention and state governments push for deregulation.

Each state falls within one of the three categories of loan regulation. The first category ensures that all payday lenders follow the state’s small loan laws. Usually, under these laws the interest cap is set low-usually less than 36%. Also, these laws regulate lengths of the loans, along with prohibiting contract revisions by the lenders. This category of payday lending makes it virtually impossible for companies issuing payday loans to make profit. It is a way for states to force payday lenders to be fair to their customers.

The second category includes the states that allow lenders and consumers to agree on any interest amount. Each lender can modify their interest rates as long as the borrower consents to that amount. However, states that follow category two still always abide by the state’s small loan acts.

The third category allows pay day lending, but puts certain restrictions on it. The states that abide by category three have maximum interest amounts. For example, North Carolina can only charge up to 15% on a maximum loan of $300. By setting maximums, the government is able to regulate how much consumers are being charged for lending services. Also, by setting a maximum loan amount, the government can regulate how much debt a person can be in with a lending company.

In every category, there are laws that protect the borrower from spiraling into long term debt. The government intervention has helped many people from becoming over their head in debt, while still allowing them cash advances if they need them.

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