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Monthly Archives: June 2017

All about Bad Credit Cash Loans

A payday advance loan is for those who have credit issues but also have an emergency state that needs some additional finances. You do not have to provide information about what you need the loan for, or in fact provide any information other than simply your job position and your bank information. Factors in the approval process are that you have a working checking account from which they will deduct the amount that is due when it is due and are assured a return on their finances.

You may not be turned down for bad credit or no credit and in many cases once the information that you offer to them is verified, finances are transferred to your checking account within hours of the application procees completion. Basic information is necessary; valid identification, checking account information and job status and information. Your lender will verify your employment status and your account activity.

As with any other loan, certain terms and conditions will apply such as the length of time you have been employed, and the direct deposit of your paycheck into your checking account. You must have residence in one place for in excess of a year and in most cases will need to be over the age of 18 to make the contract. Some bad credit companies will require you to make a certain amount of money each month, and assure themselves that you do not have loans with other payday advance companies into the bargain.

Much higher interest rates will apply than those which are charged for the normal loan. When you are looking for a new payday loan or for any source of credit, it is imperative that you research fully the information available to you and be certain that you get the best deal you can for your own advantages.

It is also imperative that you know and understand the loan process and how you will be expected to repay the loan. Most will deduct the amount from your checking account on the day that it is due, whether or not you can afford that payment. If you do not repay the loan in the day it is due, more interest accrues for which you are responsible.

If you find that you cannot make the payment in full, it is important for you to pay the interest at least so that you do not fall into default. Paying the interest alone does not touch the principle amount of the loan, but will help you to avoid a default.

Article Source: http://EzineArticles.com/878408

Info of Debt Reduction Solutions

1. Home Equity Loan or Home Equity Line of Credit. Your 21% charge card can be reduced to nearly 6% over night. How? By taking out a line of credit or equity loan against your home. Equity loans and lines of credit are available at low rates and banks are very willing to extend this service to you as your home is your collateral. Pay off all of your credit card debt with the loan and you will achieve debt reduction solutions immediately.

2. Replace high interest credit cards with low interest cards. Yes, in this day of low interest rates, many credit cards carry high interest rates. Ask your credit card issuer to reduce their rate closer to market rates. If they refuse to budge, consider applying for a low interest rate card from another provider. Transfer your balance to the provider offering the best rate.

3. Debt reduction solutions can be realized through the selling of other assets including: an extra car, antiques, jewelry, extra property, renting out property, or liquidating some other assets. Check around your home and see if there is something that you owe that can be sold on eBay or locally at a yard sale. Take the proceeds from your sale and pay down your debt, starting with the biggest debt first.

4. If you do not owe a home, or the home you do own has negligible equity built up then you cannot get equity from your home. Still, depending on your income, you may be eligible for mortgage refinancing below market rates. Check with your bank or local housing authority to see if you qualify for a low or moderate income loan. The savings you realize through reduced mortgage payments may help you pay down your debt.

Credit Damage

Today, there are legally accepted means for measuring loss of credit through the procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards when the damage is not self-inflicted. Previously, both judge and jury, and especially the insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage.

However, in case after case, victims of credit damage who use the CDM method are getting compensation for credit loss. Many factors are changing the old mindset including credit bureau technology improvements, the application of the Fair Credit Reporting Act (FCRA), risk scoring sophistication, and the development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably.

Credit Ratings and Recovery

The impact of a bad credit rating is much more significant than most people think. Consider what poorly rated consumers face when they want to lease or buy vehicles, obtain credit cards, buy or lease or refinance their residence. In most cases, it’s an easy decision for the creditor: the credit application is simply turned down or the borrower is charged a much higher down payment – maybe thousands of dollars more with monthly payments that are typically several hundred dollars more.

“A person with bad credit is viewed with suspicion and is charged significantly more for future extension of credit because the lender feels the need to protect against a greater risk or default,” says Tom Key, a civil litigator practicing in Tustin, CA.

“Over the years I have heard reports of financial damages from clients who have been wrongfully terminated, defrauded, injured in an accident or suffered losses from breach of contract,” Key says. “These victims were especially distraught over the fact that their prime credit reputation, carefully nurtured for years, is destroyed overnight. It seemed to me that there must be a way to compensate victims for that type of loss.”

Key has witnessed the reactions of many jurors who failed to award a victim of credit damage their rightful compensation simply because they could not quantify the damages. “Jurors want a specific loss that they can count, hold and see,” says Key. “Their reasoning is that they need to know that it is genuine. They have a tough time awarding damages based on sympathy. In order for them to confirm authenticity of a claim, they want to see its quantification.”

Measuring Loss of Creditworthiness

Assuring authenticity has been a sticky situation when it concerns measuring out-of-pocket loss for victims of credit damage — until now. Attorneys who represent victims of credit damage are now utilizing the Credit Damage Measurement method to recover out-of-pocket losses for their clients.

“CDM measures the actual out-of-pocket dollars reasonably expected from loss of creditworthiness, which includes higher down payments, higher points and costs on loans, higher interest rates, higher monthly payments, or outright denial of credit,” says Key. “In addition, the CDM method also calculates the rates, costs and other terms applicable to the resulting credit rating by lenders and projects the results over the relevant number of years for the types of loans the client is likely to seek.”

Key continues, “For example, if a client’s credit was near perfect before a triggering event, and is subsequently damaged by the event, the CDM procedure can illustrate before and after analyses, calculating the cost of the same loans with the two different credit reports, Pre- injury credit compared to Post-injury credit.” In many cases, CDM clients have already realized significant compensation. In one such case CDM was instrumental in recovering $56,000 for damaged credit reputation. “That calculation is the difference between what refinancing a $140,000 loan would have cost my client with their prior rating, and what it will cost them out-of-pocket with their damaged credit rating –measured over a seven-year period.”

Ways Payday Loans Work

Criteria to be met

Most lenders have three requirements that will qualify anybody to receive a payday loan or a cash advance.

  • The person must be a US citizen and over 18 years of age.
  • He/she must be employed and make at least $1000 every month. ($800 every month if he/she receives the income via a government program like social security)
  • Must have an active savings or checking account with an American bank.

That sums it up. If you satisfy the above mentioned criteria, then you can qualify for a payday loan within minutes. There is no pre-approval verification or unwanted documentation. If you look closely, you will find that there is no credit check either. This is one of the biggest advantages of a payday loan over others forms of loan. It means the payday loan lender will never look at you as if you have the worst case of an extremely contagious disease called bad credit. You can get a loan irrespective of your credit score. Once you qualify, you will either receive a check for the amount or it will be credited directly into your checking account.

Repayment

Borrowing money is always great until you have to repay it. Payday loans have to be repaid by your next payday. Let’s say your payday is on the 10th of every month and you borrow on the 21st of the month. Then you have about 19 days to repay the loan plus an interest fee (about $15 on every $100 borrowed). You can arrange for the money to be debited directly from your checking account on the next payday. Or, you can give the lender a post dated check that will be cashed on the payday. If you are unable to make the payment on the next payday, it can be extended to subsequent paydays. But the interest rates will keep mounting and additional late payment charges will also come into the picture. Believe me, you don’t want to do that. Some other repayment options offered by most lenders are

  1. Repay the loan amount and roll ahead the interest charges to a separate loan.
  2. Repay the interest amount and part of the loan and roll the remaining amount to a separate loan.
  3. Pay only the interest charges and roll the entire loan amount to a separate loan.

But if you look at all these, you will notice something common. They all require you to borrow another loan. Now, unless you have another emergency requirement for money, why would you want to borrow another loan? So stick to your plan and repay it as soon as possible. Here’s a tip. If you find yourself in financial emergencies more often than not, then you need to go back to the drawing board and review your finances. Do not rely on payday loans as a long term solution for all your financial woes.