Wednesday, July 2, 2008

The Ten Dollar Payday Loan

I was doing a search for a specific keyword and I found that advertiser are paying for the search term "ten dollar payday loan". Not knowing what that was, I did a google search and I found something very interesting.

There are companies that advertise as being a guaranteed low-cost payday loan option, and they charge only $10 per $100 borrowed. They also proudly advertise their Annual APR as being ONLY 260.7%!.

Apparently there are companies that charge up to $30 per $100 borrowed, which is 3 times the APR, or over 750%!! Talk about gross margins! In any small business, you want to have the highest margins on your products. Getting several hundred percent is phenomenal.

You can get a small business loan for less than 15% in the current economic environment. If you can lend it out at 260-750%, you're sure to be profitable. Maybe I should start a check cashing or payday loan business myself!

Sunday, June 29, 2008

Using Credit Cards With Cash Back Rewards

There are numerous credit cards that offer cash back rewards. No, I'm not talking about cash advances on your credit cards. These usually carry an upfront fee of 3-5% and immediately start accruing interest at the highest rate, usually 27-36%. I'm not a big fan of cash advances on your credit card, although compared to payday loans, they sure can seem like a bargain!

I'm talking about using your credit card to purchase something that you'd buy anyway, and getting 2-5% cash back as a reward for using your credit card. Certain cards offer upto 5% cashback for gas purchases. With gas prices ranging close to $5/gallon where I live and rumored to hit $8/gallon by summer, getting 5% cashback is pretty darn good. If you spend $50/week on gas, using a cash rebate card can get you $130 cash back at the end of a year. Its not a lot, but its better than nothing!

My favorite cash back card is the Discover® Open Road Card (link goes direct to application).
You get 5% back on all gas and automotive purchases.

Another one of my favorite cards is my Discover® Business Card
, which give me 5% back on all my office supplies. That card gives 2% cash back on Gas and 1% on everything else, so I only use it for office supplies.

But the card that gets the most usage is my
TrueEarnings® Card from Costco and American Express
. It gives 3% cash back on travel related purchases like tickets, 2% on food and 1% on everything else. By getting the right cards, its easy to an extra $500/year!

Whats in your wallet ;-)

Friday, May 30, 2008

No Credit Check Fast Cash Loans - No Faxing Required And No Credit Check

If you have terrible credit, you likely know how difficult it is to get approved for a personal loan. In fact, many people with good credit cannot acquire a personal bank loan. Fortunately, there are other options for getting quick cash. Cash advance lenders approve loans for all people regardless of credit and income.

How to Qualify for a Cash Loan?

Qualifying for a cash advance personal loan is simple. The majority of banks and credit unions will not approve a loan request without a credit check and collateral. Hence, it is impossible for some people to get extra funds. Moreover, unless an applicant has a vehicle title or owns a home, getting approved is equally hard.

Payday or cash advance loans make the loan process simpler. If you need extra cash, completing an online application may get you approved for up to $1500 in minutes. The money can be used to pay an unexpected expense.

Cash advance lenders have easy requirements. Naturally, loan applicants must be employed. Secondly, applicants must meet the minimum monthly salary. If an applicant earns a small salary, the likelihood of the loan defaulting is higher.

Additional requirements include having a valid checking or savings account. Applicants must be at least 18-years-old and have no previous outstanding cash advance balances. Payday loan companies do not perform credit checks. Hence, you may obtain a sizeable short-term loan with bad credit, no credit, recent bankruptcy, foreclosure, etc.

Convenience of a No-Fax Cash Advance Loan

There are two types of cash advance lenders. Those who require fax copies of documentations, and lenders that do not require faxing. If choosing a lender that requires fax copies of banking information, paycheck stubs, and driver's license, applicants must forward this information before the loan is approved.

During an emergency, faxing is a huge inconvenience. Instead, select a no-fax cash advance lender. The lender will verify employer and banking information. After information is confirmed, the cash advance is deposited into your banking account. Loan approval notifications are received in minutes. You can expect funds deposited by the next business day. In some instances, funds are received within an hour.

Wednesday, May 7, 2008

Ban payday loans? Big mistake.

Washington - Fed up with politicians incapable of balancing budgets? Well, now state legislatures across the country want to take a crack at balancing your checkbook – whether you like it or not.

Paternalism – the idea that government must take care of adults because they aren't able to do so themselves – is the ideology behind the wave of politicians determined to limit how much and how often Americans can borrow money. By putting stringent restrictions on borrowing, these politicians would effectively ban the practice of short-term "payday" lending, no matter how many people use it responsibly in times of crisis.

For those who enjoy access to high lines of credit, these short-term loans – which essentially let customers borrow cash from their next paycheck – may be a bad deal. But many of the less prosperous don't have such attractive alternatives to the kind of loans that politicians like to demonize.

So when Democratic presidential candidates Barack Obama and Hillary Rodham Clinton prey on people's emotions by calling short-term lending "abusive" and "predatory," the result of their actions will be leaving low-income borrowers stranded in debt.

Most financial institutions aren't willing to cover the risk that these loans incur, so real alternatives don't exist. Why is that the case? Consider this scenario.

In some states, lawmakers have tried to pretend that they're not banning the service, only capping its price at a "reasonable level." If a complete stranger walked up to you on the street and asked you for a $100 loan and promised to pay it back in two weeks, but only give you $1.38 for your troubles – would that be a "reasonable" deal? Of course not. And no business could survive making these kinds of loans.

In fact, after Washington set a 24 percent cap on interest rates last fall, payday lenders left the city in droves, leaving consumers hard-pressed to get cash in a pinch.

So once the paternalistic rhetoric is switched off, payday lending's usefulness to borrowers in tight spots is fairly easy to understand. The quick cash means that the car gets an urgent repair, a critical check doesn't bounce, or the heating bill gets paid. Used responsibly, payday lending can help a borrower stave off financial calamity.

And it's that idea of responsibility that the activists and lawmakers trying to kill payday lending can't get their heads around. Personal responsibility is what makes adult life possible. Take something away because a small minority of adults can't use it responsibly and you treat everyone like children.

The injury on top of the insult is that laws against payday lending do serious economic harm to the people likeliest to use such a service, as confirmed by multiple teams of researchers.

One consequence of payday lending restrictions is that they force would-be borrowers into alternatives that are far more costly. Georgia, for example, has outlawed the practice – mistakenly, as a Federal Reserve Bank of New York study indicates.

The study found that bounced-check fees grew by $36 million and Chapter 7 bankruptcy filings rose by almost 9 percent in Georgia after payday lending was banned. What's worse: Bouncing checks and wrecking your credit rating, or paying a lender $15 for a $100 advance on your paycheck?

Given these facts, it's clear that those guilty of exploitation are not the short-term lenders, but politicians who are trotting out the poor to score a political victory.

The message sent by lawmakers who want to ban payday lending is to declare that consumers capable of opening a checking account and earning a paycheck can't act like adults when it comes to managing a three-figure loan. This lesson from government will only erode personal responsibility, to the detriment of a healthy society.

Americans don't need their money managed by paternalist politicians. Government should instead trust that, when given personal freedom and the maximum amount of options, consumers can decide how to responsibly use their money themselves.

• Tim Miller is the communications director at the Center for Consumer Freedom, a nonprofit organization devoted to promoting personal responsibility and protecting consumer choices.

Monday, April 21, 2008

Payday loans no faxing: instant money without doing hard work

If you are feeling money problem right now and you need urgent money to do your work then payday loans no faxing is the right choice for you this time. With no need to collect papers for faxing them to your lenders, for verify the details. These are instant online payday loans and easy way to receive the money for those who are facing the problems for urgent cash.

These days television, radio, internet websites are the main way to advertise for fax less payday loans and even emails. They allow you to borrow money in a silence and judicious manner.

You have no need to step out from your house to visit paycheck lending store and no need to meet the any person to enquire about the any schemes and plans which are offered by paycheck lenders. For these loans you do not need to make any call or phone. You can find everything about these loans through internet. Please search on internet for online payday loans, after searching about online payday loans on internet you can find many paycheck lending companies, for studying their rates and terms.

There are much more competition between paycheck lending companies for fax less payday loans this time and this healthy competition are very beneficial for borrowers.

You can easily find the beneficial company for you. No fax payday loans are easily available on internet and really these are very simple way to apply indeed for an urgent need of cash.

The criteria for approved these loans are very simple and straight. You have no need to arrange any documents to prove anything about you. For these loans you should be over 18 years of age and you should be employee of any reputated firms or company for last 4 months at least. You should have an active account in any bank.

You do not need to do any paper works for verification. Your verification will be approved via online or telephone and also no credit check require for these loans. So these loans are very helpful for bed credit history persons also and you do not waste a time for this. So you have no need to spend your time to arrange any collateral documents or either.

Monday, April 7, 2008

When Are Payday Loan Business Like Banks?

Here's a riddle for you:
Q: When are payday loan businesses like banks?
A: When they're useless!

Ten years ago I found myself in a situation where I needed a small loan. It wasn't lot, about $1200. I was in college and landed a job that required me to commute 100 miles a day. Living in Los Angeles at the time, there was absolutely no way means of public transportation. I found a decent car from a rather fashionable chap in West Hollywood that I could've paid off with my first biweekly salary. However, I didn't currently have a job and the bank wouldn't loan me the money since I didn't have a paystub yet. And I wouldn't get a paystub if I didn't get that car, so it was a catch-22 situation.

Payday loan businesses, also called check cashing or cash advance businesses work in a similar manner. They offer high-interest loans to people who can't get a loan elsewhere solely based on their ability to get the next pay check. No pay stub usually means no loan.

Luckily, my college's credit union came through and they gave me the loan, although it was at a whopping 18%. So are credit unions like payday loan businesses, or are the payday loan businesses like credit unions?

What Are Installment Payday Loans

I had heard of Installment Loans, but I wasn't sure what Installment Payday Loans were.

An installment loan is a multi-month loan, with fixed equal payments, spread out over a fixed amount of time. Kind of like a car loan or maybe even a mortgage.

So do these check cashing businesses have similar payday loans where the money is returned in installments? Often times, payday loans are due with a short duration. If the borrower is a few days late on the repayment of the loan, it can technically go into default and subject the borrower to additional fees and penalties. The ability to pay back a loan over a longer duration can save the borrower a significant amount of money, even if the initial rate is slightly higher.

These programs do in fact exist. And their interest rate is higher than the typical payday loan. But the ability to split the repayment over a longer duration makes it easier on the borrower and actually decreases the rate of default. A regular payday loan usually has processing fees of around $30 attached to it and is typically for around $300. This makes the processing fee a whopping 10% on average, of the money borrowed. Having to recycle this loan a few times with additional penalties can easily make the effective interest rate to be over 200% on an annualized basis. No wonder having an installment payday loan makes sense. Just avoiding the processing fee a few times might reduce the the interest rate by over 50%. Makes the 30% seem like a bargain!