Pros and cons empty list on blackboard

If you have ever found yourself in a position where you needed money quickly for an emergency and you are not able to secure a loan from a traditional bank, you may have considered applying for a Payday Loan. These loans certainly have a place in society and have, in fact, grown in popularity over the last few years. People who take these loans often use them for emergencies – health expenses, auto repair expenses, home repairs – but they are an expensive option so consider a few of the advantages and disadvantages before you decide to jump on a payday loan.

Advantages

  • Best for short-term advances of $1000 to $5000 dollars
  • Application process is quick and easy, often completed on the Internet
  • Loans are often approved in minutes
  • Funds are available quickly
  • Taking out and paying a payday loan as agreed may help your credit rating

Disadvantages

  • Some interest rates can be quite high
  • Hefty payments
  • Little forgiveness for failure to pay with debt, fees, and interest rising quickly

For individuals who need cash quickly, perhaps to avoid other charges such as bank overdraft fees, a payday loan may provide a quick fix. It is important to know if you will be able to meet the payback requirements, paying large payments on time and with that high-interest rate that can exponentially multiply the amount of money you actually owe. Before applying, always be sure to check if the lender is licensed with the ASIC Professional Register to help avoid predatory lenders and compare loan rates.

Compare payday loan lenders

For those new to borrowing, dealing with financial terms can seem like wading through unknown, murky waters.  Secured personal loans, unsecured personal loans, fixed interest rates, variable interest rates, all these terms are not necessarily self-explanatory.  Fortunately, these terms are quite common in the financial world, particularly in the lending area, and once learned even a financial novice will soon be able to spot just the type of loan they are looking for.

Personal loans are loans extended to an individual or a married couple.  Common personal loans include student loans, vehicle loans or a loan to purchase a home.  Secured loans are those loans which require something to be held as collateral in order to obtain the loan.  Boat loans, vehicle loans and home mortgage loans fit this category.  The good news is that these types of loans typically have a lower interest rate than unsecured loans.  The bad news can occur if a borrower should stop paying on the loan, as the lender has the right to repossess whatever was put up for collateral on the loan, whether it was a home, a vehicle, etc.

Unsecured loans are typically extended when a borrower would like extra money for a vacation or perhaps unexpected hospital bills.  If the borrower stops paying the loan, there is nothing the lender can repossess from the borrower.  However, the interest rate for these loans is typically higher than those for an unsecured loan to compensate for the lender’s extra risk.

Fixed rate loans will have a specific interest rate determined when the loan is first initiated and this rate will remain unchanged throughout the life of the loan.  A variable interest rate will begin typically at a very attractive rate, but is subject to change usually at the end of a 3, 5 or 7 year term.  Variable rate loans are often used by homeowners who have a career that requires frequent moves.  If they know they only need a home for 2 years, they can save a substantial amount in interest with a low-rate loan and then sell the home before any adjustments are made to the interest rate.

However, if something unexpected occurs and the homeowner decides to stay in the home long-term, they may be subject to a significant increase in the interest rate applied to their loan.  It is also possible that loan rates may have fallen since the rate was first applied and in these cases, the borrower may actually be able to get a lower interest rate to finish out their loan.

It happens to everyone. It’s not quite payday yet and those unexpected expenses hit. Your car can break down, a major appliance needs repairs, or unexpected medical expenses become a priority. No matter what the reason short-term payday loans can rescue you in these times of need.

To qualify for a loan ranging from $1000 to $5000, you actually need to meet very few qualifications. As long as you have an email address, a mobile phone number, a job with a regular paycheck, and a bank account with 3 months of verifiable activity, you can usually qualify on-line.

You simply provide your details, select your amount, choose a repayment plan, and sign the contract. After pre-approval you will have your cash within one working day. This is accompanied by an SMS with details concerning your payment and approval status. This all happens in a 24 hour time frame.

What makes these types of loans unique is what you don’t need. You do not have to have outstanding credit. You do not need a huge income. Additionally, there is seldom any kind of collateral involved in the process. They even report successful payments to major credit agencies, so you will be improving your credit at the same time.

However, be warned, make sure you can meet the obligations of the payday loan. The interest is generally higher, and late payments can incur penalties that could be hard to come back from.

So if you need a loan and you want to avoid the hassle and wait times of visiting a major bank this could be the answer for you. As long as it is a short-term solution, and you can afford the interest these loans are ideal for those “quick cash” situations that can hit you without warning.

If you need fast access to some cash but don’t have any collateral to offer a lender, there are establishments where you can obtain a personal loan without collateral.  In most cases, you will pay a higher interest rate on the loan than if you had something to offer in the way of collateral.  However, the good news is that your interest rate will most likely be lower than the interest rate you would pay if you borrowed the same amount using a credit card.

Another good thing about unsecured personal loans is that typically you can use the money for anything you like.  If you need to cover an unexpected medical or vehicle expense, or perhaps you just have a few loose financial ends here and there you would like to consolidate, the choice is yours as to how you would like to use the loan money.

Most lenders offer a choice of either a fixed interest rate or a variable interest rate for unsecured personal loans. Fixed interest rate loans are good when you need to know how much you will need in order to make each loan payment. Variable rate loans typically start with a lower interest rate, but can fluctuate over time.  These types of loans might be attractive to someone who is expecting a sum of money soon to pay off the loan balance before the interest rate changes.

Before you complete the loan process, be sure you know if there are any fees associated with the loan.  Also ask what options are available to you if you should have to miss a payment.  It is always important to have a complete understanding of the loan terms in order to avoid any surprises, you can compare personal loan rates here.

 

In general, there are two types of online loan companies in Australia: short-term and long-term. A long-term loan company is the type that handles everything from auto loans to mortgages, as well as larger personal loans. These typically charge lower interest rates, but as a trade-off, they have stringent credit and income requirements. They also are less likely to want to lend small amounts.

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If you are looking to borrow money, one thing that you might be worried about is becoming the victim of a scam. After all, finding lenders and comparing rates online can be quite convenient and can put you into contact with lenders that might not have offices in your local area. However, there are a lot of scams out there, and you do have to worry about the companies that you deal with.

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Sports bikes. Scooters and Cruisers. You’ve already picked out the type of bike you want — from the style and brand to the engine size and colour. The next step is finding a way to finance this beauty. If you are ready to buy a motorbike but you’re just starting out on your own, finding the right lender can be a chore. Here are some tips on different types of loans and how to compare loan lenders when looking for a motorbike loan in Australia.

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