Category Archives: Finance

No Faxing Payday Loans Online

Payday lenders are falling under an increasing pressure because they are supposedly preying on vulnerable borrowers. There is a controversy today when it comes to the products that they are offering. Are you really aware of what payday loans are?

An online payday loan is supposed to give a consumer access to a quick source of cash. It is meant to resolve sudden financial emergencies that cannot be met by the usual source of income of the borrower. Payday lenders used to operate solely from storefronts but they have since gone online and this makes it even easier for borrowers to get loans from them.

Those who support payday loans say that it serves real necessity. It fills an empty space when it comes to financial products available in the market. It caters to borrowers who are unable to qualify for loans from banks and other financial institutions. Without the payday loan industry, those borrowers would have nowhere to turn to when in quick need of cash.

The detractors of payday loans on the other hand claim that this kind of loan can do more harm than good. Instead of helping borrowers to get out of financial trouble, payday loans only lead them to even more trouble.

The Terms for Payday Loans

There might come a time in the future when you would look at a payday loan as a valid option for you to get cash quickly. Should that time come, it would be more than a bit useful to know more than just a little about cash advance loans.

Payday loans can range from on hundred to a thousand dollars. In some places the amount that can be borrowed is set by the state law, but for the most part it is only a loan for small amounts. On the average, the term for a payday loan lasts for two weeks to a month. Typically, lenders would charge around $10 to $30 for every $100 borrowed. That would translate to an APR that could range from 300% to 800%.

When you compare the cost of a payday loan with other financial products, you would notice right away the abnormally high cost of this type of credit. Getting a cash advance from your credit card could have an APR of 57% plus the charge for the service. Some people consider that to be very expensive, but compared to what a payday loan could potentially cost, that’s not much.

The Easy Requirements for Payday Loans

If payday loans are outrageously expensive then why is it that people keep on borrowing from payday lenders? Why is it that there are 12 million consumers willing to shoulder the cost of payday loans every year?

Part of the reason why people still use payday loans, though its cost is very high, is because it is so easy to get one. Lenders require that borrowers should have a bank account, a source of income and an ID. With those three basic requirements, a borrower can get cash at no time at all. Lenders don’t run comprehensive credit checks which are what banks do and they don’t really go out of their way to find out if a consumer can repay a loan amount.

In most states, lenders do not require borrowers to submit or fax in documents. Since the whole application process can be done through the internet, the whole thing can be accomplished quickly. In the past, payday lenders operated though store fronts, but the number of payday loan stores is declining nowadays and more of these companies are making the switch and are going online. The introduction of the internet has affected both the lenders and the borrowers of payday loans.

Is Payday Lending Legal?

The predatory nature of payday loans would make you think that some kind of law has been enacted to control it. Federal law prohibits lending to members of the military and their families under harsh terms, but for the rest of the consumers, it is silent. State laws are the ones that regulate payday lending in America. This means that there is a vast difference between what is allowed in one state and what is prohibited.

In most of the states, the high cost payday lending that we have just described is allowed by law. In eighteen states plus the District of Columbia, the state governments have placed caps on the interest that can be charged by the lenders.

Even though there are laws in place in some states which aim to regulate payday lending, some lenders still manage to evade the control that is being imposed by state governments. They use several tactics in order to accomplish this evasion. They use transactions to cover up the fact that what they are giving out are payday loans. In some cases, some small banks located in states where payday loans are regulated, are renting out their charters to payday lenders. Other lenders restructure their products as instalments so they can avoid being under the regulations of payday lending. But even if they change the name of these loans, these are still payday loans and the cost is still the same.

The Risk of Online Loans

Users of payday loans are risking being caught in a debt trap. A debt trap is when a borrower is forced to take out loans in order to make ends meet. Cash advance loans increase this risk because its cost is very high and most of the people who use it have limited income. They are not really suited to handle very expensive loans at all.

The use of the internet for payday loans is also risky in terms of security. The lender is forced to disclose his personal information through the internet. That information is very sensitive and can be used for fraud and identity theft. So even when a borrower is applying for a loan from a legitimate lender the security risk is very real. There are also some unscrupulous lenders that structure the loans so that it would be renewed every month. Since they have the bank account information of the borrower, they can do that without the borrower’s consent. Although a consumer has a right to cancel such transactions, in reality most consumers have a hard time cancelling transactions through their banks.

Payday Lenders Preying on the Poor

Though payday lenders will never agree to it, they are actually preying on the poor. According to statistics, most of those who use payday loans have small income or are relying on benefits. There is no way that they can afford the high cost of the loan. They are forced to renew the loan which would mean additional charges. In the state of California alone, half of the revenues of payday lenders come from borrowers who have six or more loans per year. That just means the payday lenders are getting most of their money from the people who could hardly afford it.

All of these things should serve as food for thought for you if you are considering using payday loans. You wouldn’t want to have a hard time paying back what you have borrowed just like those consumers that we have described. Consider alternatives first. And always read the loan contract carefully before signing it.

Faxless Payday Loans Online

Have you noticed how loan offers can be found everywhere today? There is a tremendous growth in the lending industry, but we could see the most explosive growth in the internet. Online loans have made a great deal of impact on the lives of people and this is especially true in connection with payday loans.

Payday loans are loans that are taken against the paycheck of a borrower. These loans are normally paid in full, together with fees and interest on the next payday of the borrower. Ideally, they are only short term loans intended to assist one through a sudden need for cash that cannot wait until the next payday.

The fact that payday loans are available online makes it very convenient for many consumers. But aside from that, it has many other qualities that make a lot of people consider it as a top option when they are in need of quick cash.

How Payday Loans Work

Before the internet, payday lenders operated through storefronts where a consumer could walk in and file a loan application. The lenders would usually ask for post-dated checks that would cover the full loan amount and the interest, dated on the payday of the borrower. On the date when the loan was supposed to be paid back the borrower could pay the loan amount and retrieve the check or just allow the lender to cash the check. When the payday lenders started going online, many of them dropped the use of checks. They started using direct debit payment instead.

What Are the Benefits?

The most obvious benefit of an online payday loan is that it allows a borrower to get cash quickly. Because the whole borrowing process is done online, it can be done any time just as long as there is a computer and an internet connection available. Payday lenders have also been trying to cut down on the processing time for cash advance loans. A borrower has a good chance of getting the needed money within 24 hours of filing a loan application. Many online lenders claim that they have cut down the process to a few hours. That quality makes this type of loan ideal for sudden cash needs.

Another benefit of online payday loans is the lack of too many requirements and documentations that typically slow down the processing time. Payday lenders generally require borrowers to be of legal age, employed for a certain period of time and have a bank account. Most of the time, borrowers would not have to submit any documentation to back up their loan application. But this would depend on the area where the borrower is living. Some states require that they should submit supporting documents and that would have to be done through faxing the documents. Generally the payday loan process is faxless, which, makes it convenient to a lot of people.

The Negative Side

If you are aware of payday loans, then you should have also heard about the things being voiced out against it. Payday lenders are under fire right now because of the controversial nature of their product.

One negative aspect which isn’t really controversial, but something that you should still keep in mind, is the fact the amount that you can borrow from payday lenders is limited. The average payday loan would only amount to a few hundred dollars. If you need money that’s larger than that then you better start looking for some place else.

But the most negative aspect is the fact that it is very expensive. The term “very expensive,” is not an exaggeration. The high cost of payday loans has caused the financial ruin and trouble of so many consumers. Just how expensive are cash advance loans?

The best way to measure how expensive they are is to compare them with other forms of credit. Lenders would charge interest to the borrowers in order to earn money from the transaction. This can be measured in APR or the annual percentage rate of a loan. A typical loan that you can get from a bank or other traditional lender would have an APR of about 7%. A typical credit card APR is around 12% and some people consider that to be expensive. Now, a typical payday loan would have an APR of about 400%. That’s not a typo, that’s really 400% and we are talking about the average here. There are cases when the APR charged by the lenders has gone many times higher than that. Now you know why payday loans are considered to be expensive. Sounds crazy, but it’s true and millions of people are still using payday loans every year.

Laws and Regulations

Don’t be too alarmed though. There are many states that have laws in place concerning lending. These laws define how much lenders can charge. These are usury laws. Some states have even gone so far as to enact laws that regulate the amount that payday lenders can lend to borrowers and the number of times that borrowers can use the loan. The state of New York has even banned payday lending completely. Lenders however can get around these state laws by partnering with banks that operate within certain states.

You should be aware of what your state law says about payday lending if you are planning on using it. You should also read the fine print on the terms and agreements of the loan before you sign it. You don’t want to miss anything that you might regret later on.

Should You Use a Payday Loan?

Now that you know more about faxless payday loans, the question is whether you should use it or not. Before you take the necessary steps for applying for a loan, take a step backwards and assess yourself whether you really need the loan or not. Think whether the need for cash is really an emergency situation or not. If it is not an emergency situation that should be resolved at all costs, then you might want to think of the alternatives that are open to you. There are many alternatives that you can use in order to get the cash that you need. These alternatives are not as easy to get and use as payday loans but you can be sure that they are cheaper.

Using your credit card for a cash advance is one good way to get money quickly. It would also be cheaper than using payday loans. If you have any savings then it would also be a good idea to just use the money that you have saved instead of using an expensive loan. That would save you from a whole lot of trouble in the long run.

Three Reasons Why Debt Consolidation Loans Are a Poor Choice

Debt consolidation loans are as tempting as they come. After all, who wants all the hassle of reading and paying the stacks of bills and receipts on their table? Who does not want debt problems related to credit cards to be over? Who does not want to pay less interest, and be able to continue on living a good life even on a minimum salary? The principle behind consolidation loans is taking out a loan in order to be able to pay for many loans that you might have. So it is basically incurring another debt to cover up your current debt. This is usually done to reduce the interest rates, and to roll all those debts into a single one. The loans can be particularly advantageous especially when it comes to high interest debts like the debts you have on your credit cards. Instead of looking at the positive side of consolidation loans, this article will help you see more negative aspects. Give it a quick read, and learn about the negative things surrounding consolidation.

What Is It All about?

If you try to do the math properly you will realize that debt consolidation costs a lot more. Most offices and companies that give out these types of loans can have long term payments, ranging from 5 to 10 years. If you do the math on the money you pay for the interest in the long run instead of seeing things as to what they are in the present then you will realize that you are actually paying a lot more.

Take into the account the terms, variable rates and promotional rates. The main point of these two facts pertains to increases in the interest rates over time. It is important to take into account that when a loan term is longer in duration there is a greater chance for the interest rates on that particular loan to increase. Variable rates usually suffer from a rise and fall in the indexes of their percentage numbers. Crunching the numbers on these facts can be difficult, so try and weigh your options before taking on long term loans.

Also take into consideration many of the negatives you can acquire while taking in consolidation loans. Consolidation loans may actually change your actual overall behavior towards spending. Since solving debt problems gets easier and faster, you may be tempted to spend more on your credit cards. Try to take some advice from professionals to avoid having a shopaholic like attitude whenever you take out a debt. Remember, the original problem about your debts may not be about the meagerness of your salary, but the impact of your spending behaviors.

Get Low Cost Dental Insurance Through DHMO

Not many people would spend on dental insurance as much as they would for any other medical insurance. Assuring the health of your teeth is not as expensive as you would think. There are actually numerous companies out there who offer low cost dental insurance to make dental care reachable for you.

Before anything else, you may want to first dig deeper on what dental insurance is all about. To define it, it is a health insurance system where you pay premiums to a dental insurance company and they will then pay for a part of your dental bills. The basics of low cost dental insurance include x-ray, sealants, and fluoride. Some major dental insurance plans include surgical extractions, bridges, and dental implants.

Three Types Of Dental Insurance

Indemnity: You are allowed to get any dentist you prefer for the insurance.

Preferred Provider Organization (PPO): This is when dentists sign a contract with a specific insurance company, agrees to the terms, and give their customers a cheap cost on services.

Dental Health Managed Organization (Dental HMO): Here, you are given an in-network dentist and are obliged to stay within this network to obtain your dental benefits.

Which One To Choose

If you would ask any insurance provider on which amongst the three is the best one for you, they would suggest that it still depends on your financial plan. If you are on a tight budget, the Dental HMO insurance plan may be more beneficial for you as it costs less than the other two choices.

It is the most affordable option when you’re looking for low cost dental insurance because for this sytem, dentists agree to only charge the company a certain amount of money for each type of service provided. If you apply for DHMO insurance, it is necessary that you stay within the network to be able to receive care from them. You will have to pay separately if you receive care from an outside provider.

A DHMO usually has co-pay every time you visit the dentist. This fee that you have to pay ranges from $20-$30. However, it may vary depending on the insurance provider since there are plans out there which charge more than $50. With DHMO, you are entitled to enjoy low cost dental insurance as there is a lesser out-of-pocket expense, no hospital deductibles, no claim forms, and emergency help when you are out of town.

You can also share this dental insurance coverage because there is a plan made for families and there is one made just for individuals. There are even companies which give discounts for family dental health insurance.

When you look for low cost dental insurance, you should also bear in mind that price is not the only important factor. You should also look into the benfits that you would get. If you pay a very low premium but you won’t be getting a lot of benefits, then there is no use for your insurance. Make sure that you look for a plan that has both great benefits and low costs.