Apr 09
jlarsenUncategorized
Short Term Loan – The Pros and Cons You Need to Know
A short term loan, also known as cash or payday loan, is a type of debt that needs to be settled within a short period of time, often within a week or a month, but not exceeding three months. Before you apply for a short term debt, however, you first need to have an idea of its advantages and disadvantages. Knowing these things will give you a chance to make an informed decision on whether to go ahead with your loan application or not.
Pros of Short Term Loan
One of the reasons why this type of loan is popular is due to its accessibility. If you need money fast, you can rely on a short term personal loan. More often than not, you can get funds within 24 hours, especially if you apply online. Although there are some companies that do not really look at the financial history or the capacity of the person to repay the loan, it is still advisable that you choose a company that will consider your credit standing. This way, you are assured that the lender is not a fly-by-night company.
Not everyone has a sterling credit history. In fact, people with bad credit ratings are often the ones who badly need a short term loan to help them get by until the next payday. So, another advantage of this type of loan is that it does not discriminate. Whether you have a rosy credit history or not, you can rely on lending companies to provide you with funds you need even without collateral.
Cons of Short Term Loan
One of the major drawbacks of this type of personal loan is that it has a high interest rate. You have to understand that lenders need to jack up the interest on short term loans because there is a high risk of borrowers defaulting, especially because such loans are unsecured. The rates applied to these loans are also dependent on the payment period. If you can pay off your loan in a week or two, your interest fee will be much lower than if you decide to repay your debt after 30 days. For people who get short term loans without thinking and considering their capacity to pay, such debts can add to their financial burden. In order to prevent this, you should only get a payday or short term cash loan if you are absolutely sure that you can repay it on time.
Apr 08
jlarsenUncategorized
Our market is often lumped into a single mass of bodies that the people who are not associated or who do not deal with sub-prime customers often have little or no understanding of the true diversity of individuals. Just as the prime market has people diverse in their credit usage. The Sub-prime market is just as complex.
I would venture a guess and say that only about 50% of the sub-prime market wants to make it back to prime.
Sadly, that leaves the other 50% who may not care if their FICO score ever gets above 600. This is not to say they have ‘given up’, it’s just that right now they have other focuses in life. This customer generally cares little for the total cost of something and is more interested in immediate cash flow. (eg. Who cares if the car cost $1,500 more – my payments are only $400 per month). This consumer is probably addicted to short term loans or pay day loans in some form and is creating a spiraling debt problem for themselves. It is this consumer that is most likely to abuse short term loans and engage in other high cost of credit debt choices.
How do we help them? Credit checks, background research and custom credit scores can only do so much to limit who gets a loan. How do you determine if a customer is making good financial decisions? That’s really only one part of the problem. The more difficult problem is: How do you get them to care about getting back to prime?
If they cared about that, then you would have something to work with. Suddenly, taking that short term loan out for a new pair of shoes would not seem like a great idea. The cost of the car at 12,000 vs. 13,500 would matter, even if the impact to the monthly payment was minimal.
More on this customer to come.
Apr 07
jlarsenUncategorized
Do you need a quick end to your Emergency cash needs? You should give CashNetUSA a try.
They have one of the best customer support staffs and polished short term loan product around. They offer up to $1,800 dollars and have a flexible re-payment options. That’s not a bad deal if you use the product as its intended for Emergency cash. Click the button below to be taken directly to the CashNetUSA short term loan application.
Also, don’t get too confused by the marketing spin! Short term loan, Pay Day loan and Cash advance all have the same meaning from most lenders.
Mar 26
jlarsenUncategorized
As we leave tax time (people who get money back are very good at filing early!) The demand for short term loans and other sub-prime loans will begin to heat up.
If you are a consumer who finds that your having trouble meeting your monthly bills , this is a great time to take a deep look at your finances and set an achievable budget. I’ve been in the sub-prime market for around 5 years and I can say with a high level of confidence that most consumers who regularly use a short term loan do not fully understand the dollars coming in and the dollars going out. They underestimate how much they spend. Since you’ve (probably) just had a nice influx of cash from your tax return – take this time to put a monthly budget together.
If you know your budget, and have tried other credit options and still need a loan – try the guys at TheCashMatcher.com. They have done the research in finding reliable lenders who balance profit with social responsibility for consumers.
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