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Options for Immediate Cash Loans

GuestPoster — Tue, 04 May 2010 17:56:17 +0000

If you are looking for an immediate cash loan then it’s very important that you understand what your options are. Generally speaking, if you need to get a loan by today or tomorrow, then your options are going to be limited to one of two industries: the payday loan industry, or the car title-loan industry. In this post we will discuss some of the basics of each industry, helping you to have a better idea of what you can expect with these types of loans.

Payday Loans

Payday loans are fairly simple to understand, yet many people still get themselves into trouble and fall into a very bad debt trap. When you strip them down, payday loans are:

1) Short term loans, meant to be paid back withing 2 weeks
2) Very high interest rate loans, with rates averaging above 450% APR
3) Bad credit loans, as no credit checks are required so you can have bad credit or no credit and still get the loan
4) Unsecured loans, since you don’t have to put anything down other than a post-dated check (or provide your bank account information if doing the loan online)

Sadly, many people forget number 1 – that these are only supposed to be short-term, temporary financing. They take out the loan, but don’t pay it all back in two weeks, and that is how the debt cycle starts.

Title Loans

Title loans (another one of the most common immediate cash loan options) are very much like payday loans, with the exception that they are not unsecured loans – you have to pledge the title to your car in order to secure the loan. What this means is that you lose your car if you don’t pay. However, because the loans are backed by the car and becuase there are a few more restrictions to get the loan, you can find a title loan with a slightly lower interest rate than payday loans. However, just like with payday loans, make sure you pay back the title loan ontime – otherwise you may have high fees to pay or you may lose your car.

Is It Possible to Get a No Credit Check Personal Loan?

GuestPoster — Wed, 24 Feb 2010 22:04:21 +0000

Many people ask the question – can you get a no credit check personal loan. The answer to that question is certainly yes. However, just because the answer is yes does not mean that you do not need to take extreme caution when taking out bad credit personal loans no credit check. In fact, while there are certain situation where these type of payday loans are necessary and good, these are also the most risky loans that someone can take out. As such, it’s extremely important to know exactly what you are getting into before you sign any paperwork or walk out with any cash.

These loans work fairly simple and straightfoward (one of the benefits of such a loan). You simply write a check to the payday loan company and walk out the door with cash in hand. There are no credit checks, no background checks. All you need is a bank account and a job and you can get money. Of course, because it is so simple and easy, it begs the question: “who would lend money to basically anyone, irregardless of credit, and how much is this going to cost me?”.

Really, the answer to both of these questions can be summed up in a few words: very high costs. That’s right, to take out a payday loan you will have to pay. On average, these loans can cost $16 or $17 per $100 borrowed just in origination fees, then if you annualized the interest rate you pay on top of the origination fees those would come out to be over 400% in many cases. So yes, these loans are very expensive and should only be used in dire circumstances. The worse thing you could do is to continually rely on payday loans to survive week to week and month to month. If you did this then you would really be taking a huge ‘pay cut’ and costing yourself thousands of dollars for short-term financing.

The Consequences Of Using Instant Bad Credit Loans

GuestPoster — Mon, 28 Dec 2009 21:24:58 +0000

For people who find themselves in a tough financial situation there are many credit products on the market which promise to get you out of a fix quick. The television is full of companies who have commercials detailing the handy bad credit loans that are available to all, but they fail to tell you about the very real negative consequences of using them. You see, although payday and logbook loans might have a place in extreme emergencies, for most people they just spell added financial misery rather than the answer to your problems.

The downside of all bad credit loan products is that they charge obscenely high interest rates to make up for the fact that they can be used by anyone. The lenders try to cover themselves for the fact that many borrowers will default on their loan and still make a very large profit. This means if you make use of these you will end up paying back far more than you borrow. For someone who is already struggling this can be the straw that breaks the camel’s back.

As an example you will see that if you take out a $300 payday loan over a 14 day period you could end up paying back $367 to clear your debt, which is equal to nearly 600% APR. Imagine taking this sort of loan out during an emergency to pay for a much needed medical emergency. What state do you think your finances will be in next month when you get your paycheck and immediately have to give away $360? Most likely you will be running short again next month and be in exactly the same situation again. For this reason many people find that taking out a payday loan leads to getting into a vicious circle where they need to take out bigger loans ever month until they are overcome with a mountain of debt.

The only answer is to stay away from this type of cash advance in the first place and do whatever you can to get financial help from another source. If you don’t own your own home and still need credit with a reasonable interest rate then you might want to take a look into tenant loans which are available even to those of us with a bad credit rating and are a far safer option.