The Facts About Short Term Loans

Short term loans are cash advances given by a lender to a borrower for a short amount of time, usually no more than 6 months. A payday loan is a form of short term loan, which is repaid over several weeks and often after your monthly wage is paid. Overall a short term loan terms rarely exceed one year.

Short term loans usually involve relatively smaller amounts of money compared to long term loans. Good examples of short term loans include bank overdrafts, credit cards, payday loans and cash advances. Short term loans are easier to qualify for and could either be secured or unsecured loans although they mainly usually fall under the unsecured category. Secured loans would require a form of security or collateral. Unsecured loans would not require any form of collateral or security and would come with higher interest charges as they pose more risks for the lender.

Short term loans are usually used to meet up with unexpected surges in budget or unplanned expenditure. Short term loans are often called same day loans because they are more convenient and often quicker to access to enable the borrower use it for the desired purpose. There are different types of short term loans with different perceived advantages or disadvantages. Before taking out any form of loan, it is important to first properly understand the loan and shop for reputable short term loan lenders offering the best rates.

The Dos And Don’ts Of Borrowing Money

One of the most important rules of borrowing money is that you should only use borrowed funds to make wise productive purchases. All forms of borrowed money or cash advance that you receive are not your money. It is just money that you are allowed to use now and pay back later at a cost. The cost of using that money is the interest you are charged. Do not use borrowed funds or credit cards to throw parties, watch movies or go for vacation. Why spend extra that you do really have and place yourself in debt when you could really do without that particular thing?

Another rule is that one should not be too quick to borrow money. Each time you use your credit card you are taking a loan that you would pay back with interests. Use your cards wisely. Try to avoid using a loan to pay for a loan, because you are just increasing the cost of the money borrowed. Try to be prudent, work with a budget and save more. You should also try to keep your debt/income ration low. If a larger part of your income goes to servicing debts, then you are in trouble.

It also helps to take a little time to shop around for cheap rates and sources of loans. All lenders do not have fixed rates of loaning people money. Shop around, negotiate and you can be amazed of the good deals you could find. Most importantly, pay your debts on time and when due so as not to ruin your credit rating and your ability to get easy and cheap loans in the future.

For a payday loan or short term loans, contact us for more information.

Should I Get a Payday Loan?

Have you ever wondered if you should take out a payday loan? First, what is a payday loan? A payday loan is a short term loan given to a borrower by a lender, payable on the borrower’s next payday. This means that someone who needs quick cash before his payday can get a payday loan to solve his/her problem and meet up with any financial obligation. The payday lender gets back the loan principal along with an agreed interest at the next payday.

As can be clearly seen, payday loans offer a number of benefits. For one they are easy to qualify for as no security or collateral is involved or required. They are also quick to access as they are designed to help people in need of quick cash. A borrower can usually get the requested loan amount on the same day of applying. Payday loans would thus be great for you if you need easy and fast access to quick cash.

A lot of people really cannot qualify for other sources of loans such as credit cards or bank loans because they have bad credit histories. Some people would also prefer to take out a quick payday loan when needed rather than to obtain another credit card. Payday loans do offer several advantages, but the decision rest on you. Get the facts and look for a reputable cheap lender and you would find payday loans quite beneficial. The advantages include speed, ease of access and easy qualification criteria.

Should I Check My Credit Rating?

The credit rating system is an efficient tool that is used by lenders to assess prospective borrowers. Each person is rated based on their credit history and their past behavior towards loans. The rating is supposed to evaluate the risks associated with lending to that person.

A person with excellent credit rating finds it easier to get positive approvals on their request for loans. This is because the excellent credit rating tells the lender that the risks associated with lending to that person is minimal, which makes the lender happier to lend and at cheaper interest rates. People with poor or bad credit ratings will find it more difficult to get loans, as lenders would prefer to avoid doing business with them as the perceived risks of recovering the debt on time is great. Lenders who agree to loan to this group of people would usually charge higher interest rates to cover their risks.

The important role that your credit rating plays in your ability to access easy and cheap loans makes it important to do your best to improve your credit rating. This first step to do this would be to check your present credit rating. Check your present rating and cross check for errors that may have hurt your rating, so that they can be corrected. So, the answer to the question, should I check my credit rating is yes. Check it to know your present position and learn tips to make it better. You can also check for errors that can be corrected to improve your rating.

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Long Term Vs Short Term Loans

You would have to choose between long term and short term loans if you are seeking a loan to meet up with your financial expenditure. Banks, mortgage house and other standard financial institutions are the usual sources of long term loans, while payday and cash advance firms offer short term loans. Here is some basic long term vs. short term loans information to help you understand the difference between the two and make informed choices.

Long term loans have longer maturity dates while payday and cash advance loans usually last for about 14 to 30 days. With long term loans, the lender stretches the amount to be repaid over a longer period of time. With short term loans, the borrower doesn’t have this opportunity but has far less time to repay the loan.

Short term loans involve relatively lesser sums of money compared to long term loans. The lender is thus willing to advance the cash without checking the credit rating of the borrower. Short term loans are thus easier to qualify for and the application to disbursement process is thus faster. Short term loans are thus a great opportunity for people with bad or low credit score who still want to access loans.

A higher percentage of long term loans are secured loans warranting the provision of a security or collateral before the loan application can be approved. On the other hand, a higher percentage of short term loans are unsecured loans that do not require any form of security or collateral.

How to get an online payday loan

Applying for a payday loan online makes the entire process easy and quick. With online cash advance service you do not even have to leave your house to get the cash you need. The entire process can be completed online in a matter of hours without you even stepping out of your house or office.

To get a payday loan online the borrower would need to begin the process by completing the online loan request form. The borrower would have to provide basic relevant information about themselves, their employment, income, bank account and loan amount required. Needed documentation can be faxed to the provided fax number for verification. The lender then appraises the loan application, makes verification and approves it. The required loan is then sent by direct deposit to the provided borrower’s bank account. The repayment and interest will also be deducted or withdrawn directly from the borrower’s bank account on the loan maturity date.

Applying for payday loans online makes the entire process simple, easy and fast. A lot of borrowers are thus taking advantage of this provision to access quick cash advances when they need it. It is important to note that not all payday lender with a website is a reputable lender. It is important to only deal with reputable online payday loan lenders that offer dependable and cheap short term loans.

How To Apply For A Loan

Competition, new technologies and emerging new trends have made lenders to significantly simplify their loan application process. The process for applying for many type of loans is now so simplified that it can all be completed in just a couple of minutes. The exact procedure on how to apply for a loan would depend on the type of loan sought and the procedures of the lender.

Basically, to apply for a loan one would first need to contact the lender for a quote. The quote refers to the cost the lender is willing to provide you the loan. To request for a quote, you would usually need to fill a loan request form. This can be done in person at the lender’s office or better yet online. Some lenders also have call and fax loan application options. The application form would require basic information about the borrower and other information that the lender may deem necessary in making a decision about your application. Such information may include employment information, income information, collateral or security as well as credit rating.

The entire application and verification process would also depend on the type of loan, whether secured or unsecured, short or long term, and other factors about the loan. The lender may need to check employment and income information, verify provided documents and information and even check for the credit rating of the borrower before making a decision. Applying for the loan is rather quite easy. Simply fill a loan application form at the lender’s office or website.

Hidden charges on credit cards

Credit card companies make use of several tantalizing promotional offers aimed to lure people to start using their cards. Many of such irresistible looking low interest rates offers advertised by credit card companies are sometimes designed to hide several hidden charges on credit cards that can trap the unsuspecting individual in a quagmire of debt. It is always important to read the fine print and fully understand all the charges associated with taking a using a credit card.

One way these companies try to hide hidden charges is by offering you amazing low or even zero interest rates to tempt you to join the band wagon. Several of this low interest offers are however offered for a brief period of time usually a few months to a year. After this period, the standard rate will kick in and the unsuspecting user will get more than they bargained for. Always read the fine print to know how long the promotional low interest rates would last and what the standard interest rate will be after that.

Some cards offer low interest rates but high late fee penalty rates. It is always good to make payments on time, but when you are late even once some cards hit you with high late fee penalty that can be as high as $30 or more and then increase your interest rate dramatically as a penalty. These are factors that would not be mentioned in the adverts when they try to woo you, but will be available in the fine print so take the time to read it.

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Best Ways To Improve Financial Health

Good financial health would help a family and individual to enjoy and maintain relatively good standards of living. A lot of people and families are however constantly battling to stay out of the red and meet up with all their bills and obligations. Some people wrongly believe that a good employment would solve all their financial woes. This is quite far from the truth as some people receiving impressive salaries still find themselves in financial mess and debts.

The keys to improving financial health lie in learning proper money management. A lot of people plunge themselves into problems because they do not have good money management skills. Proper money management skills include creating good saving habits and proper debt management. Everyone needs to learn to save and accumulate wealth. This would require that a person learns to properly manage resources, avoid waste and excessive spending so as to be able to put a little aside.

True, certain situations may still warrant that a person borrows or seek out loans to help cover expenses. A good example of this is the use of credit cards. It is however wise to remember that loans and credit cards are not your money. They are debts that must be later repaid with interests. So use such loans to make wise purchases and not to purchase things that you do not really need. Also ensure that you service and pay off your debts when due to maintain a healthy credit score. Prudence, a good savings culture and proper debt management will help improve your financial health.

UK Payday Loans

The UK payday loans industry has enjoyed tremendous growth in recent years as many more people are turning to this short term loan source for quick access to needed cash. The number of people recorded to have used these loans in 2009 is four times more than those who took payday loans in 2006. As of 2009, 1.2 million people took payday loans worth about £1.2 billion. The average value of each loan taken was about £300.

Payday loans are increasingly sought after because they remain one of the fastest means to access quick cash when needed. Qualifying for the loans are fast and simple, which means that many times the loan sought can be gotten on the same day of applying. For many people with bad credit history, payday loans remains one of the few remaining means for them to access quick funds when they need it.

In other countries such as in the United States, various states have legislation regulating the payday industry and limiting the amount or percentage of interest that lenders can charge. In the UK, there are no clear restrictions on the amount of payday loan interests that can be charged. Some lenders thus take advantage by charging unrealistic high interest rates. If you are looking for a payday loan, deal with a reputable payday lender that will provide you with quick cash at affordable costs.