Payday lending, the facts

People struggling to pay bills before payday often turn to short term lenders to meet their financial responsibilities. Doing so allows these individuals to pay their bills on time so that they do not default on payments before their wages or salaries are actually received. Payday loans in particular provide timely access to smaller funding amounts with shorter repayment periods.

Payday loans have become increasingly popular because they can be attained quickly and applications can even be approved whether you have a good credit history or not. Lenders do require applicants to complete affordability assessments to determine their ability to meet future repayments. Short term lending is a solution for those in need of money within a short time scale.

Loans for bad credit can bridge the gap for meeting financial obligations, while waiting for payday. When you’ve received your monthly salary, you can then repay the borrowed amount. Defaults on repayments for credit commitments may, otherwise, affect an individual’s credit worthiness. Lenders make use of credit history to determine loan approval and loan repayment terms.

Payday loan companies follow voluntary guidelines and codes of practice set by government for credit, such as a short term loan. These guidelines ensure borrowers receive suitable loan terms. Although bad credit payday loans are short term loans, where needed, individuals may be able to repay their loans by affordable repayment amounts over adjusted time scales.

The short term loan industry strives to meet responsible lending practices so that the needs of diverse customers may be met. A guarantor loan and short term instalment loan are possible alternatives to a payday loan.

Why the best tool gets better results

As a developer, and general technologist I like shiny gadgets. I also like to use the latest tools of my trade. Before going into this I feel a story coming on… Some time ago I decided to get a new kitchen installed. Now as a self respecting man (I hate DIY) my first thought was to give it a go myself to save a bit of cash, after all how hard could it be? I went down to my local DIY store and picked out the cupboards and the units, the work surface, the handles and all the other bits and bobs you need.

As I started to look at the job in front of me it very quickly dawned on me that a multi-end screw driver, a hacksaw and a couple of power tools were just not going to cut it (no pun intended, well maybe there was). Luckily for me one of my friends is a very skilled carpenter/plumber who did have the right tools. Not only the right tools but lots of them… long story short, with his expertise and an array of tools the job got done, no-one was dismembered and the taps don’t leak.

One thing I learnt from this experience and why it is analogous to the PiggyBank build is how having the right tools make the job much easier. Obviously you need the relevant expertise but lets assume that we do for now.

Just like kitchen remodelling can be done with a basic toolset, so could the PiggyBank short term loan product have been built with notepad and the command prompt. But like kitchen remodelling the end result would have been much less polished and more error prone.

The right tools not only enhance the users expertise they make you faster, more productive, incur less waste and lead to a much better end result.

To illustrate another benefit here is an excerpt from Joel Spolsky’s (@Spolsky) Joel Test.

“Even minor frustrations caused by using underpowered tools add up, making programmers grumpy and unhappy. And a grumpy programmer is an unproductive programmer.”
http://www.joelonsoftware.com/articles/fog0000000043.html

For programmers and developers the best tools comprise of powerful development spec PCs, great IDEs, testing suites and many other bits of kit.

Lifehacker (@WhitsonGordon & @Lifehacker) provide an annual roundup of tools which I tend to check every time I get a new PC

http://lifehacker.com/5826909/lifehacker-pack-for-windows-our-list-of-the-best-windows-downloads

Mac users, I haven’t forgotten you either… Here is lifehacker’s guide for you

http://lifehacker.com/5826449/lifehacker-pack-for-mac-our-list-of-the-best-free-mac-downloads

So whatever your environment, whatever the language, go forth and find the best tools. You owe it to yourself.

Happy Coding

Adapt and Overcome

Interesting week, to say the least. This start-up journey is full of peaks and troughs.

We made a big decision this week that a minimum viable product is not right for the Piggy Product. Although I’m a great believer of MVP in traditional tech start-ups, for a financial product, it just doesn’t work. So it was time for a slight pivot. So instead of a MVP, we are now going to work towards a traditional V1/beta of the product. Although this will push back the go-live, it means we will be going live with what will be close to our final product.

So there were mixed feelings in the team. But this is all part of this amazing journey we are on; we all need to be receptive to the odd pivot and slight change of plan.

It was a big moment for my development as a CEO though. Collectively we were disappointed to have to push back the go-live and of course, any change leads to uncertainty. Uncertainty leads to fear, and fear leads to a loss of focus. Not good. But once we thought about what this V1 is going to be, the mood lifted and we continued on our merry way.

I’ve been a bit reclusive and distant from team this week. I realized that I can be quite a distracting influence. I love to chat about what we are all doing, understand every element that the team is working on, to run different ideas passed the team and I find it difficult to not think that what I’m working on is the most important thing. I’m so passionate about what I’m doing and I expect everyone to stop and listen to me.

The team are so focused and driven on the tech, that they don’t need or appreciate my distractions. So I’ve rationed myself to three interruptions a day. Of course, I’m always available for them whenever they need me. Luckily I’ve known Darren and Adam long enough that they can be honest with me, and they know my working style. But this needs to be worked on. I think things will become a little easier and more fluid in terms of creativity when we are under slightly less pressure.

I’ve also been spending a lot of time in the War Room, our creative and quiet space, this week, perfecting the app process and homepage. So I spent a couple of hours picking apart the process, researching and learning, feed these back to Chris and he designs them up. The process seems to be working well and Chris’ great skill and polish expands and improves my rough guidance.

So I guess to surmise, my big learning of this week is a variation of something I already knew already. Focus on the user and all else will follow. That also is the case when managing a team of people.

If you would to talk to use about a Short Term Loan, contact us today.

Tips on finding a responsible loan company

Finding a responsible lender can take a fair amount of effort on the part of a potential borrower. However, it’s important to take the time to carry out this process in order to find the best value, borrower support, and flexibility throughout the loan duration. Responsible lenders help individuals achieve their borrowing goals, whether for long or small payday loans.

Finding a responsible lender involves comparing the best short term lenders on comparison sites for the amounts they offer, the durations, repayment terms, contractual conditions, fees, interest rates, and policies in the event of financial hardship.

However, assessing a lender’s responsibility in providing a short term loan involves other key factors, such as their:

  • Legal validity or license to lend money
  • Registration and conduct as monitored by a financial regulator, such as the Financial Services Authority (FSA) in the UK
  • Adherence to regulations, such as the Consumer Credit Directive (CCD)
  • Compensation scheme membership
  • Information on Financial Ombudsman
  • Marketing practices
  • Reputation in consumer reports
  • Accessibility in communication and response
  • Pre-contractual information provided
  • Disclosures, such as links to creditors
  • Loan approval or declining criteria
  • Credit checking prior to loan increases
  • Provision of a 14-day loan cooling-off period
  • Terms of early loan repayment
  • Checking such factors about lenders enables borrowers to choose responsible lenders to meet their borrowing needs and to avoid those with poor lending histories.
  • Understanding loan contracts allows borrowers to know what to expect from their loans and loan providers. Consumers have rights under CCD regulations that lenders are legally bound to uphold.

The dos and don’ts of borrowing money

By being aware of the pros and cons of borrowing money, individuals can responsibly obtain payday loans for poor credit for their personal needs.

Here are a few things you should and should not do when taking out a payday loan:

  • Do compare loan products and lending practices for the best money value
  • Do choose a responsible lender and cost-savings loan product
  • Don’t avoid loan product and lender comparison due to a lack of time
  • Do understand all the terms and conditions of your loan agreement contract
  • Do involve individuals who are affected by your borrowing decisions, such as a spouse
  • Do borrow money for a specific purpose that enhances your prospects
  • Don’t borrow money with the intent to save it
  • Do borrow money amounts within your means to repay
  • Do control money spending and meet loan repayments
  • Don’t default on loan repayments
  • Do obtain a loan without early repayment penalty
  • Do repay a loan promptly to avoid interest accumulation
  • Do maintain savings wherever possible

People who are considering borrowing money an use these guidelines to help make smart financial decisions and avoid problems.

The pitfalls of not comparing loan products and providers, borrowing more than is affordable, and defaulting on loan repayments may cause excessive stress, reduce credit-worthiness, prevent future borrowing prospects, and limit spending or purchase power.

Ten Tips When Considering a Loan

Making a decision to borrow money through a loan is not easy.  These ten tips when considering a loan can help you get better borrowing value for money.

  • Identify the borrowing purpose.
  • Narrow borrowing parameters.
  • Obtain a credit report from a credit checking agency.
  • Understand what constitutes your credit score.
  • Take steps to improve your credit rating.
  • Compare lending practices to choose a good lender.
  • Research loan products for the best borrowing value.
  • Choose the lender and product that best meets your borrowing purpose.
  • Be honest on the loan application.
  • Borrow money responsibly.

Deciding whether a long or short term loan is more appropriate for your needs, including the loan purpose and financing duration, helps you identify which lenders and products to research for best loan value.

Building credit history, registering to vote, paying creditors without default, protecting against credit fraud, and managing accounts responsibly achieves a healthy credit report and credit-worthiness.

Loan products can vary in loan amounts, loan duration, repayment terms, interest rates, and costs. Same day loans, which are generally small amounts, are often paid back with a month. But a longer personal loan could be repaid in several monthly instalments. By comparing loan products and lending practices, the best value loans can be obtained.

The practices of lenders and brokers in lending differs: such as the quality of customer support, marketing preferences, and hidden charges. PiggyBank is a payday loans direct lender which means we have no hidden fees, we will not share your information with other companies and our award-winning customer care team are there to help you if you have any problems.

Being honest on application and borrowing money responsibly through controlled spending and debt repayments enables you to develop a healthy financial profile for engaging in future life opportunities.

Short term lending – Why it’s not all bad

Short term loans are immediate cash solutions for individuals to meet personal financial goals and for businesses to achieve operational efficiency. Offering an emergency cash advance, short term loans may also be used at critical times, such as to reach loved ones in another country or to gain private medical treatment without long waits.

When unforeseen costs restrict cash availability to meet personal expenses, a short term loan may give financing flexibility to cover payments on time and prevent default.  By avoiding default and making timely payment, individuals actually improve their credit score and worth.

Short term loans might also be used to gain a much-needed holiday to replenish energy for future educational or employment pursuits.  Other personal objectives may be to fund the purchase of a car or pay for private dental treatment. Short term loans may therefore indirectly enhance future income-generating prospects and health.

Short term loans can provide businesses with much needed cash flow to develop business opportunities, cover operational costs while awaiting payment from invoices, and purchase necessary equipment for short term pay-off.

Whether it’s for an individual or a business, short term lending gives a level of security and flexibility for productive decision making and life changing experiences. Short term loans are structured to meet certain purposes and offer reasonable loan amounts with a short repayment period to reduce interest payment outlays.

By comparing the best bad credit short term lenders, borrowers may benefit from paying less interest over the longer term and therefore save on borrowing costs.

Choosing which Payday Loan company to go with

Payday loans have historically had quite a bit of negative press, mainly due to the shady lending practices of some of the payday lenders. We wish we could say that all lenders were legitimate and trustworthy but unfortunately that’s just not the case. There are lenders who seek to take advantage of people who are experiencing financial hardships and are sometimes desperate to get money. The best defence against shady lenders is to know how to identify potential scam artists who are looking to cheat you and practice unethical lending methods.

Can you contact them?

One of the first things you should look for when researching for reputable payday lenders is how easy it is to contact them. Every lender should have these three things at a minimum:

  • Website
  • Phone Number
  • Email Address

If a payday lender has no way of contacting them it is a big red flag. Every online lender should have a contact page where you can send inquiries to if you have any questions. If the only thing you see on the website is a form to apply then exit the screen. If there is a phone number, call it to make sure it is legitimate. If you’re going to be entering into a contract with someone you want to be sure that you can contact them when you need to.

Is the site secure?

When applying for payday loans online, you want to make sure the site is secured. You can look for the Verisign Secured badge on the site. Another thing to look for is in the URL address bar you want to see “https:” instead of “http:” if you’re entering any type of personal information like your social security number or banking information. This is more to protect your information from hackers but still, failure to have this feature could be a sign of a bad lender.

Transparency

There should not be any type of secrecy in regards to your payday loan. If you get the impression that a lender is hiding something from your or withholding information about your loan terms then that’s usually a bad sign. Legitimate payday lenders will gladly answer any and all questions and make sure that you fully understand the loan terms before signing up.

A lender should never claim to be able to offer you a guaranteed payday loan, as there are minimum requirements that applicants must meet to be eligible for a loan. The same goes for lenders that offer “no credit check loans” – the Financial Conduct Authority, who regulate the lending industry, require lenders to credit check every individual who applies for a loan. It may be a tempting proposal to apply for a loan without going through the proper checks, but these companies should not be trusted.

You should have an idea of what is going on throughout every step of the process. If at any point you feel confused or lost, your lender should be able to explain exactly what is going on. An example of being a non-transparent lender would be if you are being charged fees and the lender cannot give you a definitive answer on what the fee is for. This is a huge red flag and could potentially land the lender in legal trouble for unfair lending practices.

Search on Google

Before applying for a payday loan, you should do some research on the company. At the minimum, Google the name of the company and see if any bad reviews or scam stories show up. The internet has made it possible for past customers to post stories of their dealings with lenders. So read up and see what kind of information you can find. Taking a few minutes to search for information on your payday lender online can save you a huge headache later on.

By remaining vigilant you can make sure that the company you chose is legitimate and you can get the most positive experience with your loan.

Before you take out any form of loan, you need to ask yourself whether borrowing money is the right thing for you.

If you can cut down on your spending or put off buying something until you’ve saved for it, do that.

If you are borrowing money to make repayments on other loans and debts, you may be in a vicious circle and it might not be the best thing to do.

Why we moved into the cloud

Here at PiggyBank we have made the choice to put our infrastructure into “the cloud”. A fashionable term at the moment. You will find short term lenders and payday loans companies masquerading as “tech” firms banding this term around.

Like them we took a long hard look at how we were going to let our lovely customer service their short term lending needs in the most robust way possible. After all, you don’t want to get halfway through something and see this kind of thing…

So what do cloud servers provide that traditional hosting or Internal systems don’t give you? In short, elasticity. With the cloud (at least the one we have chosen) you get; Lower IT cost, no onsite hardware, built in ability to scale, and in comparison to traditional onsite IT it is much greener.

With PiggyBank systems living in the cloud we can manage the costs of our services on a much finer grain that onsite systems. We are able to increase or decrease the number of servers and services we use when the demand goes up, or down. This means that we only pay for what we use rather than having servers gathering dust. Lower costs for us means cheaper short term loans.

A greener alternative?

As the servers we use are virtualized in a data centre, you get more servers for your hardware. This means that there are fewer machines eating electricity… Here is a handy infographic that explains more

Rackspace® — [INFOGRAPHIC] How Cloud Computing is Saving the Earth
Rackspace® — [INFOGRAPHIC] How Cloud Computing is Saving the Earth

At PiggyBank, we are using the rackspace cloud www.rackspace.com

Payday Loans – The benefits for you

Different types of payday loans meet specific loan purposes and have varying loan criteria.  Each type of loan, its terms and conditions, fees, and interest rates can benefit borrowers in different ways.

A payday loan is a type of short term loan; other types of short term lending options include overdrafts and personal loans. Some people use credit cards as a form of short term lending. Payday loans meet current needs while awaiting future income.

A payday loan is a means of obtaining immediate flexible financing for either a business or personal goal. The intent is to make timely repayments, such as within a couple of months from borrowing, when expected income is received.

Short term loans give a range of benefits that include:

  • a financial safety net to manage expenses
  • a means to meet an immediate personal or business goal
  • flexible money options to make decisions
  • immediate cash flow to cover operations while awaiting income

Unforeseen costs and financial outlay may leave insufficient money to cover expenses.  A short term loan aims to bridge the financial gap so that spending may be controlled, payment default prevented, and expenses covered on time.

Personal and business goals can be met without delay and inconvenience.  Short term loans give borrowers options.  Business people have choices to pursue income-generating opportunities without large debt commitments.

Consumers choose short term loans to gain immediate cash needed for life development opportunities, while businesses may opt to borrow cash based on future paid invoices. There are so many ways that short term lending can be beneficial.

PiggyBank is a direct lender that can offer cash loans online when you’re in a tight spot.