Apr 02
ssanfordemergency loan, emergency loans, Short Term Loan, Short Term Loans
In many cases, if you can avoid having to borrow money, you should – most people would agree with that. However, there are definitely some cases where a short term loan of a limited amount of cash is justified. I thought I’d share a few of those here.
- Sudden Emergencies. We’ve probably all been in unfortunate jams – blown tire, water heater breaks down – and having access to quick cash would be a life saver.
- Unexpected Expenses. Ever go to the dentist for a cleaning only to find out you’ve got a cavity? Or how about a phone bill that’s higher than expected? These situations are less urgent than an emerency, but often leaves you flat-footed and needs to be taken care of quickly.
- Small Bridge Loan. This is the classic “ran out of money before I ran out month” problem, and having access to short term loans is a bit more appealing than going hungry. But be careful – if you find yourself in this category for many months in a row, it’s a sure sign you’re living “above your means” and needs some active management to get things back in line.
- Family Security. Some would disagree with this, but I personally think that every member of your family who is out alone needs to have a cell phone for personal security reasons – and for parental peace of mind. If you don’t have the extra cash or prime credit to get phones, I would personally borrow money to outfit my family with mobile phones.
- Building A “Sub-Prime” Credit File. Everyone has a credit file with the “big three” credit reporting agencies, but short term lenders don’t look at them – if you had a good “prime” credit score, you would just borrow from a bank. But did you know that there are credit reporting agencies for “sub-prime” creditors? It could be a good idea to start establishing some history with one short term lender (one with flexible repayment options, APRs as low as possible, and great customer support) just so you have a “rainy day” source of short term loans when needed. Start small — a $100 loan is a good start — get yourself on a payment plan if one is offered, and pay it off over time. Then do it again, at $200, again at $300, $500, etc.
Just one caution with short term loans: only work with one lender if at all possible. Why? Because just like credit cards, short term loans are a slippery slope and once you have two lenders, there can be a strong urge to start “robbing Peter to pay Paul” and that’s the beginning of a very bad story.
So – short term loans do have their value, even if you don’t need them right now. In today’s ever-changing economy, it would be a good idea to have a a back up plan for life’s little surprises.
Aug 10
jlarsenpaydayloan, Short Term Loan
In the short term loan world there are lenders, re-sellers, good guys, bad guys and everyone in between.
We like the good guys. The guys who do the hard work and make sure they have an honest product. If your looking for a short term loan and need some options – Check out ResponsibleLoan.com
ResponsibleLoan.com - Short term loans
-Jim
Jun 15
jlarsenpayday loan, paydayloans, Short Term Loan, Short Term Loans
Why it’s hard to be a short term lender
Being a short term lender is a rough business. I am not trying to gather sympathy or a ‘poor me’ vote. I am simply saying that with the increasing smart fraud rings, government oversight and very high demands of good consumers. (Good being defined as customers who apply for a short term loan with intent to pay the loan back) the business is getting harder to make profits.
What did he just say? Hard to make profits at triple digit APR? Yes. Very hard.
Here is why:
- Fraud rings are fast moving and hard to spot
Fraudsters are very good. They steal identities that look very good to underwriters. They have access to bank accounts and have started to recruit industry insiders to learn how to beat the system. I would say that about 10% of loans are taken by a person who has no intent to pay the loan back.
Some quick math:
If a company makes $100 in loans and loses 10%, they must make 10 dollars in profit to cover that loss. That $10 in profit is coming from good paying customers. Not to mention that booking the bad loan costs about $4 dollars for processing the loan. (This $4 dollars includes 3rd party calls to credit agencies and labor for reviewing applications, customer support, etc)
So, out of $100 in principle loans – a company losses about $14 to fraud.
That’s not bad - certainly not enough to prohibit profitability. Moving on.
- Good customers sometimes have problems
The simple fact of this problem is – Customers who need $250 loans, have checking account problems that need to be resolved. They go negative sometimes. As the economy trends continue to be poor. Customers 2nd + default rate continues to rise. (2nd + default rate is an industry term used to define a customer who makes a good first payment and then fails a 2nd or other payment)
2nd pay default rates have increased from 5% a few years ago to north of 10% . So, good customers are defaulting on part of the loan.
What options does a company have? If a customer says “I do not have money in my account” can any company really even attempt the payment in good faith? No.
It’s important to note that good customers usually do make good over time. But at a reduce yield. The money loaned stays out longer and returns less revenue – lowering effective APR.
This accounts for a 10% loss in revenue + the $14 from fraud. That leaves less profit then industry critics would like to admit.
- Keeping the lights on is hard
Government oversight is good. I believe it needs to improve. Consumer awareness of the high interest rate and the impact of payday loans and short term loans need to be burned into the minds of the consumers who use them.
However, lacking federal law has put the states in charge of regulating this industry and they are not able to handle the complex company structures and laws that companies hide behind. Also, the sheer volume of different state laws makes good law abiding companies put forth very complex systems to report usage, calculate complex state by state loan limits, APR, max pricing, max loan amounts, and notification to spouses just to name a few.
State by state products are expensive to build and maintain – requiring large development staff which are expensive.
A Company who does right by its consumers will make less than 20% profit in my experience. 40% of revenue will be loan loss, 20% will be operating expenses – which leaves the 20% of revenue as profit. That is not out of line with other industries.
May 28
jlarsenShort Term Loan, Short Term Loans California, Short Term Loans
I am a fan of the California short term loans and the regulatory body. I think it has a good balance of meeting consumer demand and keeping lenders in check. Also, of course in being why we love California they pursue the lenders who do not stick to these ideals.
Also, I love the $250.00 maximum amount to borrow – if you have regular emergencies that require more than $250 to solve, there are probably bigger issues than just cash flow. The 250 maximum is a nice balance for the typical short term loan customer to work with and pay off.
California also does not allow rollovers – These are the non-principal payments that many lenders make their money on. Any interest only payment is bad, it does not matter if you’re talking about a mortgage or a paydayloan.
Also, the mandatory payment plan that California short term loans must provide is great. It forces lenders and customers to work together to come up with a solution to debts being paid.
While many of the internet marketers will throw money and complex loan products at you – it’s tough to beat the spirit of the California rules.
May 13
jlarsenShort Term Loan
Short loans
Having been around the sub-prime and short term loan word for a few years I have come across some great companies and products and some not so good. I’ve seen men and women who genuinely care about the well being and financial stability of their customers. I’ve also see pure greed. As I move to more of a consumer advocate for financial education I want to sure my musings and education to help you make a better short term loan decision.
Before you apply:
Before you apply, Make sure to check with your bank and other forms of prime (read: less expensive) credit. Short term loans and online payday loans are an expensive form of credit. Most companies, especially in a recession / down economy we are in are willing to work with customers who talk to them about staying current.
If you still cannot defer payment for awhile, take a look at the following to generate some cash:
- Sell crafts on Etsy.
- Sell something on Ebay
- Craigslist is a great local selling resource
- Cash in your change from the change jar
- Donating blood plasma fetches about $30 and you can do it twice a week
If your confident you have no other means to credit, cannot defer payment and have no quick methods to generate cash. read on!
Good and Bad reasons to apply:
A good reason to apply, leaves you requesting only the cash you need and lets you be comfortable that you are making a good informed decision. Only apply if the cost of not applying is greater than the cost of credit of your potential short loan.
- Short loans are generally less expensive than bouncing a check
- Bills that have a re-activation fee (My power company loves that little charge)
- Your car is broken
- Medical care (Check with your health care provider before though – they have plans usually)
If you stay with the above short list, you’ll leave yourself in good shape.
Just like good reasons, the bad list is just as obvious – stay away from borrowing fast cash for non-emergency or non-critical expenses. It begins a spiral of debt that is hard to recover.
- Non-needed / nice to have items
- Non-critical bills
- spending money
Things you need to know:
Make sure to find a lender who has the price and policies your wanting. (We’ve done some research here). Do not discount the cost of credit and how quickly this high interest loan can add up.
- Pro-rating: This is not common among lenders any more, but you can still find a few.
- Payment plans: Should be fair and allow you to lower payments
- Loan agreement: Should be clear and understandable.
If you’ve done your homework and are confident you need a short term loan. Your ready! Apply below.
Application for Short Term Loans
May 11
jlarsenShort Term Loan
Before you apply for a short term loan make sure you have the following information handy, we’ve found that it will speed the process and help get a quick turn around on your application.
- Proof of income – This can be your latest pay stub or other income information
- Checking account and routing number – Lenders have tools that can verify the accuracy of your accounts
- Identify information – It may seem simple, but many background checks require SSN, Address and driver license numbers to be complete
We have already reviewed the best short term lenders for you or you can click the button below.
As always, make sure to read the Fees and Information pages on the lenders sites and understand the policies of the lender your applying with.
Start My Short Loan Application!
May 04
jlarsenShort Term Loan
Fraud is a fact of life when dealing with short term loans. From both a lender and a customer stand point. Customers deal with the worst of it, since they are rarely able to identify fraud and resolve it. Ex’s apply in their name, co-workers apply for others names and data theft.
Of all the fraud lenders see, I would guess 90% of the time the fraudster has some sort of relationship with the victim. That’s frustrating (and hard to spot for lenders). It’s sad that people need to hurt and do damage to friends and family for a few hundred dollars.
For Lenders, fraud is usually easier to spot. Not always easy, there are some dedicated fraudsters – but with the tools and background checks in place, the game is tilting toward the lenders to find and detect fraud.
The sad fact is, everyone is a victim of fraud when a lender has to cover the costs. It increases the rate that a lender must charge to stay profitable and that cost is passed on to good customers. More on this later.
Apr 21
jlarsenShort Term Loan
I stumbled on a site that fits nicely with our blog. The Money Times – I was impressed at the amount of content that fits our niche market of the sub-prime group. The goal of the site is to present the facts regarding different products, news and regulations and let consumers make the best decision for them with the information at hand. I’ve even gotten to publish a few articles on paydayloans.
If your interested in learning about the short term loan market or just keep up on the industry trends. It’s a great place to start and keep visiting.
Apr 15
jlarsenLoan for bad credit, Short Term Loan
There are many online companies that offer loans for bad credit. Such loans are becoming more accessible and available even to individuals who have bad credit history. However, speedy and easy processing of this type of loan should not be your main concern. There are a lot of issues involved in securing a loan that you should know about. Besides, you need to understand that there are also big consequences when you miss due dates or when you are unable to pay the money you borrowed. To know more about the important things to consider when getting a loan to cover your bad credit, just continue reading.
Many people get excited about getting loans for bad credit because it is so easy to get. As a consumer, however, it is very important that you know exactly if the interest rate applied to your loan is reasonable. You also have to know how interest is computed on your loan. There are some online companies that only charge borrowers for the days that they keep their debts open. This can be a good offer especially if you are sure that you can pay your loan on time or even earlier. In connection with this, you need to look for web-based lenders that do not charge pre-payment fees. Rather than penalize you for being responsible, your lender should appreciate that you are paying your loan earlier than expected.
It is also very important for people to check what types of charges and fees are applied to the loans. There are some companies that lure people to get loans for bad credit by offering lower-than-expected interest rates, only to recoup their investments by charging exorbitant penalties for late payments and bounced checks. Even if you are sure that you would be able to repay your loan on time, it is still wise to veer away from lenders that charge high fees and penalties.
Finally, you need to find an online loan provider that will offer flexibility in case you are unable to repay your debt in time. You have to make sure that the company that offered you loans for bad credit will help devise a payment program that can help you get out of your debt. Problems such as being laid off from work or getting sick for a few weeks might prevent you from paying your debt on time. Thus, it is vital that your lender will offer you a helping hand on how you can settle your debts at more flexible terms.
Apr 15
jlarsenLoan for bad credit, Short Term Loan
Based on my experience, getting long-term loans for bad credit is not a walk in the park. If you are interested in seeking home or car loans, you first need to repair your credit score before lenders and other financial institutions would trust you with a bigger loan. Fortunately, there is one type of bad credit loan that you can get easily. It is called short-term bad credit loan. Such a loan can give you a breather during financial emergencies and can even help you improve your credit standing. If you want to apply for this kind of debt, read the tips below.
The first thing that you need to do, before you apply for any type of loan is to check your credit score. There is really nothing that can prevent you from getting a copy of your credit report because it is free. Just do not get it every month because frequent checking of your credit standing might also affect your rating. Furthermore, be sure to see if there are inaccuracies in your report. Sometimes errors can cause your negative credit rating. If your score is lower than 580, you may find it difficult to get any type of loan. But if you need money fast, one of your options is to get loans for bad credit.
The next step in applying for loans for bad credit is to look for online lenders that can provide you with the amount that you need. You should make it a habit to compare the rates and policies of various lenders. Sometimes you can find lenders that charge exorbitant interest rates, but do not charge for late payments. Thus, it is important to not only look at the interest rate, but also other aspects of the loan you are applying for.
Finally, it is vital that before you secure loans for bad credit, you are absolutely sure that you have the capacity to pay such loans. You are only putting yourself into trouble if you get a loan even if you do not have any source of income to repay it. Many people who use short term bad credit loans to pay other debts and obligations find themselves having a mountain of debt plus huge interests that become too ginormous to repay. You do not want this to happen to you, so you have to know if this type of loan is the best option before you go ahead with your application.
Older Entries
RSS
