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A Guide to Emergency Cash Loans and Payday Loans

In this rapidly deteriorating economic climate, emergency cash loans and payday loans are becoming increasingly popular. The problem with these is that more and more people that have never required a short term unsecured loan in the past are finding a need to obtain one for that ‘rainy day’ for which they have no longer been able to save up.

Many people are spending their savings, and the term ‘life savings’ is now a bit of a joke. Those that can afford a life savings scheme don’t need it, and those that need it can’t afford it. Of course I don’t mean that literally, because many people are saving and need their savings, but nevertheless the sentiment is pretty accurate. Saving is getting harder, and when that unexpected expense comes along then those that not too many years ago would have had something put by to cover it no longer can.

Hence the upsurge in emergency loans and payday loans, and there is really very little to chose between them. This guide is intended for the newcomer to this type of short-term borrowing, and how you can make it work for you, or how it can cost you more than you can rally afford. It’s all about using the loan for the right reason and paying it back as agreed.

THE AMOUNT

Unless you are dealing with a company with few morals, you will likely be offered no more than up to $1,000 for your first loan. Some companies restrict that to $600 for first time customers. The reason for that is that the loan is not secured, and even though legal action would sequester the cash back from your income, most loan companies would rather not do so for a large amount, and it is easier and less expensive to recover a small amount than a large amount.

Once you have successfully repaid your first loan, then the amount you can subsequently borrow steadily increases.

THE REASON

The reason for taking such a loan has to be compelling. If you can borrow from a family member or good friend then do so because it will ultimately be less expensive for you (unless they charge you a high rate of interest!). It is not economical to use an emergency loan to pay another loan, although if you are in danger of defaulting on accredit card payment you might think the extra expense worth maintaining your good credit record: no price can be put on that.

However if your credit is shot, as it is with many people seeking emergency cash, it would likely make no difference other than the fact that you could likely negotiate lower charges with the credit card provider than you would get with a payday loan.

There are other reasons for needing emergency cash loans apart from being unable to pay regular bills, among them family deaths where the life insurance is insufficient to meet all the expenses. This is becoming more common as process rise while investment rates remain stagnant. The same is true at the other end of the life scale: weddings. These too can be high cost events that few couples or their parents have had the opportunity to plan for financially.

In such cases, emergency payday loans are a boon, and it is a case of get the event over and paid for and then worry about repaying it. However, and this is one of the major points of this section, a regular loan, either secured or unsecured, will be considerable less expensive than an emergency loan. So if you have two or three weeks to spare, apply for a regular loan that can be paid over a longer period of time. Emergency cash loans are real emergencies when cash is short.

THE COST

Interest rates vary, but they are not termed that – they are generally referred to as the fee. That can be anything the lender wants but the average is around 25% for up to a month. So if you get paid on the last day of the month and borrow $400 on, say, the 10th, you will pay back $500 the following payday. And if you fail to do so, because you can’t afford it, then you can ‘roll over’ the loan and repay it the following payday with another fee, so you pay back $600.

That is why you must be able to meet the arrangement. To people in real need, who have perhaps just had a massive drain on their monthly salary for whatever reason, $400 to tide them by on grocery bills till the end of the month is fine, and they can easily repay $500 from their paycheck. However, if not, then it can be very expensive, that is all I am saying. I am not saying don’t do it – heck I have done it twice myself, which is why I know so much about it – but do it with your eyes open and pay on time.

THE PROCESS

There are several different procedures, and not all lenders work the same way. Here are some of the variables:

1. Credit checks: some lenders will carry out a credit check and some will not. You might get a lower fee if you have a good credit record, but a bad credit record will not stop you getting the emergency cash loan. Because:

2. Security: the loan might be legally classed as unsecured, but you have to be in employment to get one, and also have a checking account, or current account as it is called in the UK. The security is that the lender has you sign a direct debit form so that the payment is taken from your bank account on payday.

Now, they have no means of knowing when your payday is, but if you fail to pay they can have an arrestment order on your wages, so that your next paycheck comes with the repayment taken off. Your employer is bound by law to adhere to the arrestment order. That can be embarrassing, which is why you should stick to the agreement.

3. Arrangement: The way that my two loans were arranged went as so with two different loan companies:

a) I applied using an online form, providing the usual personal details, plus my monthly net income, my pay date, and the telephone number of the company – not the name, just the number.

b) I filled in an online direct debit mandate providing my bank details and account number.

c) The lender called the company and asked for me. When they were put through I was asked my date of birth and monthly salary. That was how they checked that I worked for the company, and me knowing the details indicated that it was I that filled in the form.

d) The cash was put into my bank account.

That was it – with both companies. Now I know that some ask for you to fax your bank statements and payslips, but you can avoid that if you deal with the companies on my website. There are the easy ways and the hard ways. In fact one of the two companies I dealt with had the cash in bank within 2 hours of me applying by means of a CHAPS payment – that type of payment usually costs a fee, but it came free. Well, you know what I mean. I didn’t pay for it in advance let’s say, but it was certainly included in the fee!

So there you are. That’s how I did it. Twice. I paid them back at the right time, and the loans helped out a great deal. I no longer need such services but they are great if used properly. I can help you do the same thing if you really need the money: but you must really need it now, because otherwise you are better arranging a longer term secured or even unsecured loan.

Cash Loans – How to Protect Yourself From Scams

Whether you’re taking out a Canadian payday loan, or you’re getting payday loans in Ontario, or even getting cash loans in Quebec, one thing is sure: there are many scammers and con-artists out there just waiting for you to slip up and hand over your cash to them.

Be careful! You’ll find that their websites look very credible, their sales pitches quite alluring, and their staff and people downright charming and disarming. They’ll know just what to say to win your trust and get all the sensitive information they need to siphon your bank account dry.

There are several simple steps that you can take to make sure you’ll never fall victim to these people:

Be careful! – Remember the elementary rule? Never give out personal information to strangers. Well, the Internet is crawling with these people. Always make sure that your personal information, such as name, address, bank account number and social security number is well-guarded every time you go online.

Disregard spontaneous offers – If some strange man on the street offered you candy for no reason at all, your first reaction would be to back away. Same thing should go for the Internet. If unwanted sites suddenly send you emails about how great their cash loans are, or how much they’re looking forward to working for you, ignore them. The really credible and well-established online payday loan companies don’t need to resort to such tactics.

Up-front fees are a big no-no – This is a big no-brainer. You’re getting cash loans because you don’t have money to begin with, and some no-name company is asking you for a starting fee? Kind of strange, don’t you think? Legitimate companies will use their approval process to see whether or not you’re worth lending money to, not use cold, hard cash as collateral for money you’re supposed to get.

Ask for references – Legitimate businesses will never get offended if you ask for references, or testimonials from satisfied customers. It’s a chance to expand their business, and, yes, bragging rights.

Exercise Caution with Electronic Money Transfers – Many scam artists will ask that you pay or deposit money using electronic money transfers. The problem with this is that it’s untraceable, and once you’ve sent the money, there’s virtually nil chance of getting it back. Ask your cash loans company how the money will change hands, and if there’s something that sets your alarm off with the way they handle things, better listen to your gut and look for another company.

Don’t let emotions rule you – Crooked businesses and downright crooks will use either flattery or threats to get your money from you. They will either appeal to you by giving out really sweet deals, or use harassing or coercive tones to get your money. Never back down from these kinds of people. Make sure to report them to the proper authorities.

The best defense against scams and crooked deals when using online cash loans companies is pretty much your own common sense. So, don’t forget to use yours!

Money Loans Company – Payday Loans and Cash Advance
20 Eglinton Ave. East
Toronto, Ontario, Canada
M4P 1A9

Quick Cash Loan: The Instant Source For Urgent Extra Cash

A cricket ball from the park smashed the windscreen of Richard’s car. His bank balance was nearly empty and the paycheck was still a fortnight away. Richard was in a fix because the thing needed immediate repairs and the funds were nowhere in sight. Unforeseen circumstances and pressing state of affairs like these require money – not in months or weeks, but within a day or if possible within a few hours. A large section of the populace in UK can identify with this situation, because they too have a minuscule or near empty bank balance and a paycheck-to-paycheck lifestyle. A quick cash loan is fast, easy and cure-all remedy for any financial crisis precipitated by a sudden and unexpected urgency. The emergency can be like the one mentioned above or a credit card bill or a medical problem or it could be anything that demands some extra cash.

Quick cash loan is specially designed to fulfill such exigencies. It doesn’t require any paperwork; credit checks or faxing of documents and the cash is deposited in the borrower’s checking account within a day or two. A quick cash loan doesn’t have any application fees. Many lenders are now offering quick cash loans through Internet. The entire process from filling up of the application to approval of the quick cash loan is done online. Once the lenders are satisfied, the funds are put into borrower’s checking account via a wire transfer; absolutely no hassles- just quick fast cash. If you earn at least £1000 per month you can get a quick cash loan of £500 deposited into your checking account within 24 hours.

The essential requirement for getting a Quick cash loans is that the borrower should be employed. Many lenders offer quick cash loans only to those people who have been with the same job for at least five months. The lenders want to ascertain that the applicant has a steady job and is receiving a consistent income for at least a few months. A three-month-old checking account is also one of the requirements to get a quick cash loan. In addition to these, the lenders will verify the borrowers identity. The lenders often overlook poor credit history and bad credit ratings, because quick cash loans are based on the employment status of the borrower.

The interest rates on quick cash loans are on the higher side. The typical APR for a quick cash loan can be between 9% and 30%. However, lenders nowadays are increasingly charging fees instead of the interest on quick cash loans. On an amount of £100 this fees can range from £15 to £30. Quick cash loans are available for small amounts- usually under £1000. The quick cash loan has to be repaid within 15 to 30 days. The repayment process is either an automatic deduction of the loan amount from the checking account of the borrower, or a check in favor of the lender. The repayment date of these loans generally coincides with the paycheck date. If a borrower is not able to repay on the specified date he has to bear the penalties. The lenders add up the loan fee or the interest rates each time the loan is rolled over to a new repayment date.

A proactive borrower can cut any delay in the approval of a quick cash loan. Before applying, if a borrower has his employment, identification and checking account details ready, he can get the loan very quickly. Many lenders take just five minutes to process the application. The entire process – concurring perfectly with the sensitivities of the borrower, justifies its name – quick cash loan.