Yay or nay: 'Payday' loans for financial emergencies

MANILA - Availing a payday loan for financial emergencies may be convenient, but is it a wise move?

A payday loan is an amount of money lent at a high interest rate, on the agreement that it will be repaid when the borrower receives the next paycheck.

To pay for the loan, a borrower has to issue a post-dated check in the amount that he and lender has agreed upon. The lender then holds on to the check and cashes it on the agreed date, which is usually the borrower's next pay day.

Despite its convenience, Fitz Villafuerte, a registered financial planner, warned that payday loans can lead to more problems.

Whereas personal loans happen through credible, regulated financial institutions that are part of the system, getting a payday loan from people you don't know is an unpredictable practice that may leave you in a bad place.

Some lenders also require borrowers to surrender their ATMs, which can lead to problems, like lenders taking more money than what is borrowed from them.

For Villafuerte, if taking out a loan is unavoidable, then it is better to get one from your company or a bank.

"If there's a payday loan offered by the company, I would say that's the better option because at least, automatic deduction na siya sa salary mo. However, if your company does not offer that, then availing of one sa bank is also okay. However, make sure that the reason you're buying money is an emergency," he said.

He also said that building an emergency fund can help save one from living from paycheck to paycheck.

"The best way to really avoid getting a payday loan is to have money saved in the bank specifically for emergencies. It's good that payday loans are available, but make it as the last resort to get money if there is a financial emergency," Villafuerte said.

source: www.abs-cbnnews.com

The Fastest Forms of Loans

Loans aren’t always easy to find. If you need the money quickly, you can’t go to a bank because the application process could take weeks. You can’t go to a building society for the same reason. There are alternatives, though.

Let’s discuss some of the fastest forms of loan.

Payday Loans


Payday loans are always going to be the quickest loans because there are no credit checks involved. All you have to do is tell them how much you need and how long you want to borrow the money for.

The interest rates are high, which is the big downside, but if you need the money within a few hours there’s no faster way to get that money.

There are plenty of payday loans companies around, so do your research and see which one offers you the best deal.

Credit Cards


Credit cards are another easy way to get money fast. If you have a good credit score and own one of the top cards, you can benefit from the ability to borrow a couple thousand dollars with no questions asked. The terms of repayment are generally fairer than payday loans, but your credit score does come into it.

What if you don’t have the score to get one of the better credit cards, though?

There are still options available to you. One option is to take out a credit card for those who have bad credit. You can borrow small amounts of money with no questions asked, which is still a superior option to going to a bank.

Person-to-Person Lending

The final option that would fall under the definition of ‘quick’ is to lend from someone you already know, such as a family member or a friend. The chances are you won’t be able to borrow as much money, and you will have to make a conscious effort to repay on-time, but it’s often the case where you can get money without any interest attached.

Another variation of this is crowdfunding. We wouldn’t recommend this because it does take much longer to get funded, and there are no guarantees you’ll actually get the money, but on the other hand you don’t have to pay the money back.

Conclusion

The best ways to get money fast is to either use your credit card or to take out a loan with a payday loan company. Just make sure you always consider the financial implications of taking out a loan. Ensure you have the means to pay back the money on-time.

source: christianfinanceblog.com

Building Credit for Dummies

Whether you’re just starting to build credit or you’ve taken a hit or two to your credit score and now you’re trying to build it back up, there are a few things you can do to make sure you’re doing everything you can to better that score. Take a look at a few of the most important things you can be doing to get your credit on the right track.


Avoid late payments at all costs. Late payments are a quick and easy way to send your credit score plummeting. When you pay a bill late, it’s listed on your credit report and simply paying it off won’t stop the damage from being done. If paying bills late is a problem for you because you’re forgetful, set yourself reminders or pencil in your due dates on a calendar to help you remember. Paying bills late because you’ve found yourself fallen on hard times is a little bit trickier. If you’re short on cash, payday loan options are available. Of course I (and any other advisor on personal finance with their head on the right way) would never recommend you take out one of these loans unless you really are out of other options – but if you’re stuck between that rock and hard place I recommend you do yourself a favour and go with one of the really public providers like Wonga. Larger brands like these guys have invested a lot in their customer service and are keen to mitigate the volume of negative PR directed at the Wonga brand – so you can be sure they’ll be giving you a better service than you’re like to get with smaller providers. The point of this of course is to make sure your bills are paid on time so they don’t fool around with your credit score. The loan application is done online and the funds are deposited to your bank account the next business day. That means when a bill sneaks up on you, you can pay it off quickly without the extra charges and collateral damage to your credit score (you will be paying back a sizeable chunk on your payday loan however so take care of that ASAP and don’t let that repayment run over-due either or you’ve accomplished nothing!)


Open a bank account. If you’re searching for easy ways to build and establish credit, a bank account is the first place to start. Simply opening an account won’t help you tremendously, but keeping it open and in good standing can do wonders in the long run. Just be wary about your spending habits when you finally start an account of your own as you can just as easily find your credit score slipping if you frequently overdraw your account or make any number of other common mistakes. The longer you have your account, the better your credit report will look. And be sure to go for quality over quantity because opening multiple accounts and never making use of them can just as easily cause you problems. 



Sign a lease (or get your name on one). If you’ve never signed a lease, it’s time to get started. If you’re renting on your own, you’ll have no choice but to sign a lease (and you’ll probably also have to get someone to cosign for you because of your lack of credit). By paying your rent on a regular basis, on time with no complications, you’ll be establishing a healthy credit history. If you can’t afford a place on your own, look into finding a roommate. But be sure to get all parties’ names on the lease. Not only will it help you all establish credit, it also saves you from being solely responsible for damages or late payments if your roommate doesn’t turn out as well as you’d hoped. Make sure you’ve got yourself covered, legally.



If you’re unsure about where you stand as far as credit goes, do yourself a favor and obtain a credit report with your score. This will let you know where you are and what you can do to get to an even better position.

Pablo is 26 and based out of Barcelona, he’s been blogging for over 6 years in the financial industry, offering advice to people on money management and how to build successful financial portfolios.

source: 20smoney.com

Struggling With Money This Time of Year?

Even the most responsible of financial planning can unravel during the hectic holiday season, no matter how meticulous your financial planning. You may find yourself in need of a helping hand and a quick cash injection, which is where a short-term, quick turnaround loan will come in handy. Thankfully, there are options available for those during these trying times.

How Do I Access a Fast Cash Loan?

Customers that require a cash loan can have money deposited directly to their personal bank account, provided they meet the company’s income and status requirements. Reputable payday loan companies will verify your identity and ability to repay the monies lent.

How Much Will I Pay in Fees?

All credit is subject to interest, whether borrowed from a bank or a loan company. These fees notwithstanding, the benefit of a fast cash loan is that emergency holes in your budget can be filled immediately, often during the same day. A typical repayment on borrowings of £100 might be £117 after 15 days. It is vital that you are able to repay the short term loan on the date agreed, otherwise fines may be applied. Customers should seek advice from a debt charity such as CCCS if they are having difficulties meeting their financial obligations.

Get Cash Quickly and Easily

Most types of fast cash loans can be processed between 15 minutes and 24 hours, depending on which loan company you choose to borrow from. Almost all payday loan companies will require that you have a valid personal bank account for them to deposit the funds into. Once the money is received, it’s yours to spend on repairs, renewing essential items or for other life emergencies.

Whether a holiday time need or unexpected emergency during another period during the year, responsible lending companies are on-hand to help should the need arise – so don’t discount the idea of reaching out.

 source: christianfinanceblog.com