Free Payday Loan For First-Time Borrowers

Advertisements to get a free payday loan are all over the place; on tv, on the web, in the mail. You can get information anywhere. You might have seen that the interest rate is higher on a payday advance loan than traditional loans. In fact, they can vary a lot. But did you know that you can get a free payday loan? Read on to find out how.

A payday advance is the quickest easiest way to get cash when you need it. Many companies will lend you up to $1500. It will not take a long time for you to apply for a free payday loan. The application takes about 10 minutes to finish. Some application can be finished faster than that. Are you looking for more information about free payday loan lenders? Then check out www.debthelpsource.com.
You only have to provide your basic information to finish your free payday loan application online. The lending agency needs you to inform them of your age – you have to be 18 or over; employment status – you need to have worked at one job for at least 3 months; and monthly income – you need to earn a minimum of $1,000 a month.
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Payday Loans Facts – The Shocking Truth About Them

Payday loans should be used as a short term loan, that you can use to help you through difficult times when you are short of money. Before taking out a payday loan, you need to know the costs of doing so, this will stop you losing a lot of money in interest rates. In this article, you can have a quick overview of just how a payday loans works. Additional facts and information about the correct use of them and safe business deals will also be tackled in this article.

Definition Of Payday Loans

Payday loans are loans that are normally applied for by people who are in need of some quick cash. Payday loans are there for when you are temporarily short of money and need some for an emergency. The normal time frame for a payday loan is about a couple of weeks. This only applies if you ask to borrow a small amount, like a couple of hundred dollars.

Payday Loans Costs

In general payday loans are quite an expensive way to borrow money. People who do take this route to borrow money pay a annual percentage rate or APR that amounts to an overwhelming percentage. As an example, if you have borrowed $200 to be paid back in two weeks, you can pay a fee of $40 and if you do not repay the borrowed amount and the fees in that time, you may find it very disturbing that you will have pay a ever increasing interest rate. This kind of percentage can be quite alarming, especially for those who are only able to make repayments of a set amount that there budget will allow.

Pitfalls Of Payday Loans

One of the main pitfalls of payday loans is that when you take one out it does not really solve your problems. They can make the problem even worse, this is because of the high interest rate you will be charged. Regardless of what your problem is, the loan company will not really care as long as you make your repayments. Because of the high interest rate you are charged on what you have borrowed, instead of helping you it can very often pull you down.

Payday Loan Alternatives

There are plenty of alternatives to payday loans. These are a few:

o Having your own emergency cash or savings fund, but this one is often easier said than done.

o Open a credit card for emergency purposes, again this can be dangerous, as a lot of people will just end up using the card anyway.

o Get a part time job (but this may take some time and will not be very helpful when a on the spot emergency arises)

o Consider a peer lending service for a better and more honest deal.

To sum up, payday loans are ideal in times of crisis or an emergency, but must only be looked at as a short term solution to get you out of trouble!.

For more Free helpful information on Payday Loans be sure to visit www.yourfinancesforlife.com. A popular website that provides Payday Loans Help, advice and resources to include information Cheap Payday Loans.

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Top 5 Myths For Payday Loans

1. Payday loans trap consumers in “cycle of debt”
Although the phrase “cycle of debt” is a favourite among industry critics, it is not based on the truth. Researchers and American state regulators consistently report that 70-80% of customers use payday cash advances between once a year and once a month.

It is important to understand that a payday advance is not meant to be a long term loan. What a payday loan has done is assist millions of families with emergency needs. This means that a payday advance is given only under the agreement that it will be paid off on the applicant’s next payday (hence the term, payday advance). Short-term loan providers also operate a rollover service to help keep the payday advance applicant from being stuck in a long term, high interest rate loan.

2. All operate as loan sharks
A payday loan provided by a reputable payday loan or cash advance company does not take advantage of people. It is meant to be used only for a short term emergency situation by employed persons who need a little bit of help between paydays for emergencies. This is a very common occurrence when most families live pay check to pay check and may not be financially prepared for emergency repairs, travel or medical expenses. In reality, quick payday loans fill a necessary component in the economic world.

3. Rude employees
Payday loan companies do not compete on the price of their loan, therefore it is important for them to compete on other aspects of the service to create a competitive advantage. One of these ways is through customer service and to ensure all employees are financially knowledgeable and are fully qualified for the job to certify their customers are given an excellent customer service. This is further enhanced through the recording and monitoring of telephone calls in and out of the company.

4. Target vulnerable people, the poor etc
Payday advances are marketed toward subprime clients without a distinction in employment or culture. In fact, payday loans are marketed toward those people earning between £10 000 and £25 000 per year. Most payday advance members are under 45 years old and all applicants are currently employed with a steady income and have an active checking account. In reality, payday advances are meant for working adults with an immediate emergency need that cannot be satisfied through bank and union loans.

5. Hide fees and have high interest rates
The payday cash loan facility is required by law to disclose any application fees, interest rates and other fees. In accordance with OFT guidelines, it is a legal requirement that all fees and rates must be clearly outlined and disclosed to the customer.

A payday loan does have high interest rates. This is not because the lender is trying to take advantage of emergencies, but because they are a short term lender. The payday loans are meant to be short term loans, not long term loans that are constantly refinanced with monthly statements. This means that the payday loan company assumes greater risk at the same profit level as other financial institutions.

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