Payday Loan Information and Facts
If you’re looking for a temporary solution to a financial emergency, a payday loan – also commonly referred to as a cash advance - is an ideal solution. By definition, a payday loan is a small, short-term loan (between $100 and $1,500), usually secured with a postdated check, that is intended to help a borrower with his cash flow before his next paycheck.
In the United States, payday loans are legal and regulated in 37 states - in one state in particular, issuance of payday loans is permitted only to licensed lenders. Payday loans are, however, prohibited in Georgia and 12 other states. Ohio also recently passed laws to curtail payday loan practices.
Where the payday loans are permitted, the APR (interest) charged and payment options are dependent on the laws of the state as some jurisdictions tend to impose strict usury limits. Typically, payday loans are easily accessible on the internet as well as in retail shops.
Only a few payday loan companies will do a credit check before lending to a customer. In most cases, bad credit will not stop you being granted a payday loan. However, how much you borrow will depend on your income. Additionally, lenders will usually require that you have been in the job for at least two months (sometimes more). And if you’re a first time customer, it is highly likely that they will want to verify your employment and income status to make sure that the income you declared is real. Read more
Pros and Cons of Low Interest Credit Cards
Credit cards are becoming almost a necessity in today’s modern world. People of all ages would rely on credit cards to make their payments. However, many have also been declared bankrupt due to their uncontrolled spending habits. With an abundance of types of credit cards in the market, consumers are spoilt for choice. Low interest credit cards are one of the favorites and with low interest in mind, it is not surprising that it is popular. Let us examine the pros and cons of a low interest credit cards.
Pros
1. The advantage of choosing the low interest credit card is that the credit card company basically lends you money with zero or no interest. If you have difficulty making payments on time, this card would definitely help you as the company charges you a minimal interest rate or some zero interest rate.
2. Another plus point of the low interest rate credit card is that your woes of unwanted financial charges lofting around you would not be there. This is because there are no interest rates and with late payment the penalty for it would be minimal. Just ensure that you understand the fine prints before making a decision on which card you wish to apply for. Understanding and reading the fine prints well is important because many have been caught by surprise when invoices arrive at their door steps. Read more
Credit Card - Treats and Tricks
Trick or treat? We have all heard about ingenious offers given by credit card companies offering zero annual fees to free hotel room stays to free gifts and even cash advance. It looks as if these companies are paying you to use their Visa Credit Card or Mastercard. What’s the catch, if there’s one? How does the credit card company make tonnes of money annually with all these freebies?
A Small Gift Is A Small Price To Pay
Credit card companies are smart. They want you to use their card because even if you pay in full at the end of every month, they still get their commission from merchants wherever you use the card. So, they are never at the losing end even if they offer you a free night’s stay in a nice hotel. Recently, one credit card company offered a free night’s stay in Genting just for signing up. It is common knowledge that this free night stay only costs about RM50 to RM80 thereabouts. Assuming you use the credit card for one year averaging RM500 per month and assuming the merchant commission is 2%, the credit card company makes RM120 gross on commissions alone just because you use the card.
Hook You Long Term
Not only do they want you to use their card, they want you on the long term. Incentives like interest free payments for expensive purchases are but one of the tactics employed to make credit card holders use their card for at least 12 months or more. Some interest free payments even extend up to 36 months. The longer you use the card, the more likely you are to spend and the higher their chances of racking in the merchant commission. If I am not wrong, the credit card company also earns commission from the merchants who participate in interest free payments. Read more