RSS
 

Learn the facts before you borrow

28 May

What is a payday loan?

You should always keep in mind that a payday loan must be repaid on time to avoid penalty fees that could be almost equal to the sum of the money borrowed or sometimes they can be even higher. If you fail to pay it on time and constantly extend it that can create you financial dilemma.

A short period of repayment usually lasts for four to eighteen days depending upon the conditions of the agreement. The repayment date and the way it is going to be carried out discussed by the time the loan is given. Usually the borrower agrees to pay back the money before the due date. Moreover some lenders may take back the money by depositing the borrower’s post-dated check on an agreed date.

There is a fixed rate calculated and included into repayment for every given loan. The average rate is $15-20 per $100 borrowed. Because of the fact that payday loans are quick turn-around by nature, the annual percentage rate is usually very high. It is normal for the APR to be more than 200% or even higher than 400%.

If the customer fails to pay back the money on the repayment day, the term for repayment may be extended by loan providers, which many can find convenient, but disadvantage of the extension of the loan is additional fees that are added to your account. If you take for example $100 as a loan the fee to borrow it is $14. If you have extended your repayment for three times the new fee would be $60. That means that to the borrowed amount you have to add the original fee $15 plus three times the fee $60 to each $100 borrowed.

Requirements for a payday loan

Usually the main requirement for a payday loan is that you should be employed. You having a job is a guarantee that you will be able to pay off the loan. You are expected to get a paycheck and therefore to pay the money back for a loan. A LoansAssist.Net wants to know that you are employed and have a steady income. They don’t usually require you to have a good credit history, so in a way your job is your collateral.

It’s very easy to get a payday loan. The procedure is very simple. You apply, get your application approved, and sign the contract that indicates that you are to repay the loan on terms of loan provider. Make sure you read the contract thoroughly and clearly understand what is written there, if not do not be ashamed to ask any questions about what this or that term means. Sometimes the contracts are written in a legalized financial language that can not be easily understood by average common people.

 
Comments Off

Posted in Uncategorized

 

The Basic Information About Personal Loans

25 Nov

Secured and unsecured loans are the main types of personal loans that can be borrowed from banks, loan companies and some other financial institutions.  Personal loans are intended for personal purpose whatever they are: buying a new vehicle, house or going to the holidays. All these require some extra money that is usually not planned by your budget.

Let’s discuss the main characteristics of these two types of a personal loan.  A secured loan requires from the customer a security against a loan. Any kind of your property can be a security against the loan which would guarantee that you will make the repayments of the loan borrowed.  Remember that in case of the repayment failure, the lender will take the pledged property.

Unlike the secured loans, unsecured loans don’t involve presenting any collateral to secure the loan.

Personal loans can have fixed or variable interest rates. Fixed interest rates don’t vary through the entire period of a loan which helps you to plan your budget and be sure that one day it won’t be a problem to make the repayments. Variable rate of a loan can change because of the market processes.

Personal loans can meet the need of different customers. It’s up to you to decide what amount of the loan you want to obtain taking into the consideration your ability to make the repayment.

In general, the amount of the personal loans can be in the range of £1,000 to £75,000 that cam be borrowed itfor a period of 5 to 25 years which depends on the type of a loan.Interest rates depend on the length of the loan.

As a rule, loan providers will check your credit history to make sure that it is not risky to deal with you. If you have bad credit it doesn’t mean that you won’t be able to obtain a loan but in the majority of cases the interest rates will be higher.

Before getting a loan make sure that your loan provider is a reliable company. Don’t take the loan from small firms which are not known as they can charge high interest rates and different penalties.

 
Comments Off

Posted in Personal Loans