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!