What Are The Best Reasons To Apply For A Payday Loan?

Payday loans are turning into one of the most preferred ways to cover a financial emergency that your budget did not foresee. These short-term loans are even more ideal when your next paycheck won't be able to spring for the monetary crisis that you have on your hands. As many companies offer this service, too, those who need the assistance of direct payday loans lenders are assured of finding that help.

The popularity of payday loans, however, has given some the idea that they can go to direct lenders for anything that they need. If the next payday is not going to happen for a few more days, applying for a payday loan can be the way to go. And, since many lending companies are not very finicky when it comes to approving these loans, many may think that any reason would do - as long as they get the cash that they think they need.

There is nothing wrong with that, of course payday loans can provide the necessary financial coping means that many of us would be thankful for, after all. Lending companies would only be too happy to extend a helping hand, too. However, loans should instill in us the fact that there is something we can fall on, if we ever find ourselves in a situation where such help is greatly needed - but not to the point where we would permit ourselves to use them as a form of escape when our paycheck could not completely satisfy our wants.

The following are some of the best reasons to go for a short term loan. Note that each of these, while unforeseen and unexpected, are very solid grounds upon which we can fully be qualified to ask for a little financial help.

1. Car emergency. A lot of us have been in this situation: our car breaks down, we take it to the repair shop, and we get a bill which clearly says we won't be able to pay for it without help. During these times, same day loans would be really effective. Many lending companies grant same-day loans, so getting your car repair bill sorted would not be a problem. Eligibility for a payday loan is not going to take long, too, so you can have the cash that you need immediately.

2. Medical emergency. A health-related disaster should be dealt with, as soon as you are able. And, if you find that you cannot, instant cash loans would help tide you over such a crucial time. The immediacy of these loans are perfect for cases that warrant your attention most, with the added benefit of assurance that you would be perfectly fit to respond to these emergencies.

Many direct payday loan lenders operate with a really good set of policies, thus giving people the guarantee that the financial help they need and would find is indeed help. If you are considering it, just make sure that you are getting it for the right reasons.

Benefits and Drawbacks of Payday Loans

Without having to go through a cumbersome process of applying for a loan, payday loans have become the most popular form of immediate financial aid to people. Several financial problems such as medical bills and utility bills can be paid by getting payday loans. However before relying on these loans, it is imperative that the benefits and costs are studied to make appropriate decisions. This article sheds light on the benefits and drawbacks of small payday loans in a neutral manner.

Benefits:

Immediate approval- The most addictive part of these loans is their immediate approval. It does not take more than 24 hours from applying to getting the loan credited in the borrower's account. In some cases, it hardly takes even 12 hours. Instead of waiting for several weeks, your loan application is immediately approved.

No relevance of credit score- Banks check the credit score of their loan applicants. Based upon this score, banks then decide to whether approve or disapprove the loan amount. In the case of instant loans, credit score is not a decisive factor to be determined by the lending authority. In fact, most of the applicants applying for short term loans have a very bad credit history.

Drawbacks:

Very expensive loans- As compared to a typical interest rate of less than 15%, payday loans have interest rates starting at 30% or higher, which makes these loans very expensive to repay. Payday lenders usually provide a ballpark estimate of the principal amount plus the interest expense to be paid within 30 days deadline. If you fail to repay within the time limit, interest expense keeps on increasing.

More debt- In simple terms, the inability to repay a payday loan increases your debt level and there comes a time when the repaid amount is often 10 times greater than the borrowed amount. Instead of getting out, you are further getting buried under heavy pressure of debt.

Very addictive in nature- The quick application approval process of these loans make them addictive in nature. Unfortunately, this has become a habit for many borrowers who are just unable to pay the rising debt on time. Do not indulge in this habit.

Concluding, it is better in cutting down your unnecessary expenses rather than borrowing funds to finance your luxuries. Loans are never a good option for anyone. Make use of these loans very wisely or you could end up in a big financial stress.

What Is Happening With The Payday Lending Industry?

If you're an avid reader in the internet, chances are, you've already noticed the attention that payday loans have and the growing numbers of articles written about them. Its not a surprise anymore, and the very reason why its getting much visible is because of the given media attention ever since the recent recession we experienced. Payday loans are becoming more popular especially with the general public for several reasons. To maintain its popularity, these payday lenders try their best to cater those who are in need of their services. Keeping in phase with payday loan trends requires a creative and innovative mind.

Current State of The Industry - Payday Lending

Last year (2011), lenders were in a state of amazement. A lot of the lenders got their most successful years in terms of business, offering more loan options with higher value than the previous years. Some lenders - mostly those who offer their services online - even see themselves grow from a starting firm to a popular one in over a year. In the eyes of most consumers, they have the recession to blame responsible for this shifts, but experts suggests that it all happened before the economy suffered a great recession.

For online payday lenders, they found a growth of around 30 to 35 percent over the years. As the market grows, it also develops changes shifting to more younger individuals using the opportunities of having to acquire short-term payday loans. With the advancement of the technology, it becomes easier for these consumers to get access to online lenders through the internet using phones, computers, or tablets. Whether they are in need of starting capital for a business venture, or they just hit a rough time of the year with finances, they apply for these types of loans.

The Benefits of Applying For Loans Online

While some lenders still operate the traditional way, more and more companies are now using the Internet to establish more visibility and business presence. This way, more and more consumers or borrowers are given an easier means of canvassing for the right lender at their convenience without the need of leaving home. It's quicker and basically easier, unlike what most people experience with the old or traditional lender. And, it doesn't stop with the application, as the approval rates and length of approval is becomes more speedy allowing one to get the much needed amount within a day from approval or application.

Payday loans also are more preferred by many as compared to other types of loans because they are considered unsecured, or basically no collateral required unlike pawnshops or other types of lenders that require you to submit properties or assets as insurance for the loan. In payday lending, none of these are required.

Why People Want Fast Cash

There are a hundred reasons why people apply for such loans. Reasons can go from funding for paying outstanding bills that are nearly due, as capital for a small business venture, or for emergency expenses.

Unfortunately, the bead economy has lead more and more people to rely of these types of loans in a more regular basis. Some people use it for rent or pay utilities, while some do to pay other mortgages. This is something that should be avoided, as it brings you closer to a debt trap. Consumers should only use these types of loans for its main purpose: to provide short-term solutions for urgent emergencies and temporary cash needs.

Regular Car Maintenance Can Reduce Payday Loan Usage

Finances and cars often go hand and hand; not only are cars expensive, but they require maintenance, much like one's finances. Individuals are wise to treat their cars like their finances, taking measures to keep everything running smooth and in good order. The best way to keep your car, and in turn your finances, healthy is to keep up on all regular scheduled maintenance. Don't let a small problem become a huge financial burden. By taking care of the little things your car requires, you can consequently safeguard your finances, keeping you from seeking out a payday loan when expensive car issues arise.

Neglecting regular car maintenance can have serious financial consequences, leading to payday loan usage and expensive repairs. Skipping a few twenty dollar oil changes can cost a car owner hundreds if the engine develops deposits and needs substantial repair, while forgetting to rotate one's tires can lead to dangerous blow-outs and lower gas efficiency. Additionally, many car warranties are dependent on the owner's promise to keep up on maintenance; failing to do so can void a warranty, leaving the car owner with the cost of repairs that may have otherwise been covered.

The best way to maintain both vehicular and financial health is to regularly have one's car serviced. The following is a list of regular maintenance that car owners should heed.

*Oil Change: A car should have its oil changed every 3,000 to 7,000 miles, as an integral part of car maintenance. Forgoing oil changes is bound to have a serious effect on a car's engine, which can cost the owner a lot of money and time. There are many businesses that conduct quick oil changes in less than a half hour; thus, taking the car in for this service is only a minor inconvenience. Having a professional change you oil is relatively inexpensive-roughly twenty to thirty dollars-but you can also do the oil change yourself, if you know how, and save a bit of money.

*Tire Rotation: Tire rotation is a very inexpensive and quick service that makes a huge difference in the function of your vehicle. Rotation ensures the longevity of a tire as it helps the tire to wear evenly. If tires are not regularly rotated, they will wear faster and need to be replaced, which can be very costly. Keeping tires in good repair also help to save on gas, as the vehicle performs better and gets better gas mileage. Tires should be rotated every 5,000 to 10,000 miles, or every other oil change.

*Brake Checks: Brakes are the most important safety feature in a vehicle. As such, they should be check regularly to maintain optimal functioning. Brakes should be replaced approximately every 25,000 miles. Furthermore, if brakes squeak or vibrate, they should be checked, regardless of mileage. It is a good rule to have your brake depth checked during every tire rotation, as a safety precaution. Not taking care of your car's brakes is inviting financial and possible safety issues. It is not worth it.

*Fluid Checks: Your car's fluids are like their blood; the car will die without them. Having car fluids, including transmission fluid, engine coolant, brake fluid, and oil should be checked and topped off every time a car is serviced. Many fluids can easily be checked at home.

Payday Loan Lender Rates Remain Constant As Bank Rates Climb

Payday loan lenders have high fees for their small short-term loans. It is well publicized and laid out in the contract which is signed. These fees do not affect everyone since not everyone finds a need to take out a loan with a direct payday loan lender online. If they do, it is not a daily occasion and is quite helpful in that last ditch effort for access to cash. Banks though, are financial institutions which people use every day, trust to hole life savings and depended up on to do many financial jobs. When bank fees go up, it affects just about everyone.

Personal banking fees are on the rise. Legislature efforts to keep fees at a minimum are falling wayside as banks continue to raise the costs of their personal banking services. Fees for checking accounts and ATM usage are at their all-time high.

If a person uses an ATM which belongs to a different bank than their own are facing a double charge which the customer may not even be aware of. The owner of the ATM has a right to charge a persona surcharge for using their machine. The owner of the card being used has a right to charge a person a transaction fee to use their card in a machine which does not belong to them. That is double the cost. With prices on the rise, those charges add up fast. It is costing consumers more and more money to gain access to their own money. An ATM will charge you to use your own money. The direct payday loan lender charges for the use of their money. It makes more sense to pay to use other's money, not your own.

Banks are saying that the raise in fees is due to federal regulations on debit cards and overdraft policies. Losing billions of dollars in revenue needs to be made up somewhere else, right? With all the complaints against online payday loan lenders, it is pretty safe to say that they are not earning billions of dollars in fees from anything. That just goes to show that high interest rates on short-term loans do not begin to compare to lower rates with everyday long-term costs.

Charges for checking accounts are also making waves with people who cannot afford to keep $3000 in their checking account. The use of banking services, what was once free, now holds a monthly charge for many hard working people.

Changing banks is not an easy thing to do; especially if you do online banking and have bills scheduled and direct deposits. It takes time, and during those few weeks it takes to redo it all, a person will need money in both accounts. Those who live paycheck to paycheck will have a tough time switching banks, and the banks know it. Closing accounts is a process for a reason; the banks do not want to lose customers. Payday loan lenders are direct lenders for immediate cash when your paycheck is too far away. Banks have started their own short-term loans to imitate payday loans with no state regulations. High interest without regulations is one more way for a bank to collect revenue.