Archive for May, 2010

Signature Loans

Friday, May 28th, 2010

Signature Loans are unsecured loans that DON”T require collateral to be taken out. A signature loan is basically personal loans that are extended to individuals approved for loans, such as medical loans, home repair, or other loans.

Signature can be granted by banks or credit unions, as well as alternative financial providers like payday lenders that grant cash advances before payday and sometimes short-term small-dollar installment loans. With most signature loans you will need to provide information such as , social security number, employer, income, residential address and other contact information.

Signature loans can be a good solution or sometimes a better solution than using a credit card as they can have lower fixed-rate APR. Interest rates depend on a variety of information but the major deciding factor is if you are a prime or subprime customer. If you are a prime customer the loan amount and interest rate will highly reflect your credit score, which takes into account debt to credit rate as well as your credit (payment) history as well as your income and employment. If you are a subprime customer it will solely depend on your employment status and income level.

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Finance made EASY

Tuesday, May 25th, 2010

Personal finance is one of the hardest aspects of balancing when becoming a responsible adult. Everyday we are faced with financial choices both necessity and frivolous that our brain must weight and choose carefully. If we bought everything we saw, heard or read during the course of our day, we would be broke however what happens when you have cut your frivolous spending and you still need to pay the bills, food, etc.? The answer create a predetermined budget and stick to it.

Every month you will have reoccurring expenses, such as food, gas/transportation, mortgage/rent, credit card bills, other loans or outstanding debt, electric/phone. These are the bills you HAVE to pay in order to keep your credit good and your debt low. However some bills you may see as a necessity may not be. Try eliminating one of these items to cut costs

Cable/Internet- Most people need access to the internet in this day and age but remember there are still places like Libraries where you can use this free. At least at the low-end of things lower the speed of your internet connection. This can save you up to $25 a month!

TV/Cable- While cable is great, who needs it now with Hulu. Ditch your cable and watch your shows online and get a basic transformer box to watch you local stations if you wish (this is a one-time $50 cost for a converter box)

Cell Phone/Phone- You really don’t need a home phone and a cell phone anymore so get rid of one. If you are a cell phone person look to pay as you go phones as they are less tempting to “go over” on minutes and you won’t use it for texting or surfing the internet, which can add fees quickly to your month budget. Remember keep it basic!

Here are some other good tips

Call and try to reduce your credit card interest rates. This equals lower monthly payments
Use the least amount of electricity possible to save money
Move or rent a smaller place or in a up and coming are
Save gas! Walk, bike or take the bus to get around!
Shop at low-cost grocery stores, plan your meals in advance so you don’t waste fppd or money
Limit your fun and entertainment budget. Supplement with low cost activities like, swimming, going to the park, reading a book, catching up with a friend.

And always try and save for emergencies so you don’t have to use a credit card or costly payday advance

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Online payday advances vs. In-store payday advances

Tuesday, May 18th, 2010

When looking for a cash advance, you may feel all payday advances are equal, but this is NOT always the case. Depending on your needs you may want to find your best local payday store or go online. We have compiled a check list of common needs/requests for payday advances, so you can find the best product that works for you.

1) Over 18, whether you are applying online or in-stores you must be over 18 to apply. Both types of lenders will ask for your license to confirm you D.O.B.

2) U.S. Citizen, all online lenders will ask for your social security number before your loan will get funded however, not all payday advance stores require a social security number to complete the loan, but many of them are starting to do so.

3) Income. Whether you apply in store or online, most lenders require their customers to make at least $800 a month to be eligible to receive a payday advance.

4) Open and active checking account. While local payday loan stores will hold a check until your next payday and then cash it online lenders works slightly differently. They will need your banking information and basically you to sign a contract letting them automatically withdraw the money owed (loan amount plus interest) on a certain date.

5) Neither type of lender will loan to military personnel, due to the usury cap of 36%, when lending to military personnel. Its not profitable so they can’t conduct these loans.

6) The biggest difference is convenience and customer service. While proponents of online loans, love the convenience, proponents of in-store loans are more concerned about the person-to-person customer service only available at their local store.

7) Loan Shopping- One of the nicest features of online payday advances are the ability to apply to a multiple lender payday advance site, and have them do the loan shopping for you. Instead of shopping each local payday advance store to find the best interest rate and highest loan amount, most multiple lender sites do that work for you free of charge.

Whether you apply for a payday advance online or in-store, make sure you understand all the terms and conditions associated with that loan, including fees and loan due date, before you accept or enter in to any contractual agreement.

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Regulating the Payday Loan Industry

Tuesday, May 11th, 2010

Currently regulation for the payday loan industry is  up to each individual state or U.S. territory. The only federal regulation that exists concerns lending and usury caps to military personnel and their families. Under the new Obama-sponsored creation of the Consumer Federal Protection Agency or the CFPA, Wall Street along with alternative loan product lenders, such as payday lenders, will be subjected to the new but independent financial agency.

The hotly debated CFPA is being opposed by almost every financial institution in the country. Bringing long-term enemies such as banks vs. credit unions, traditional vs. alternative financial markets together in a fight to keep their business unregulated by the “government”. In modern America, everything seems to be regulated by the government yet financial products and decisions have been able to roam-free since the formation of the Americas.

The CFPA was an idea that became widely debated after the bank bailout crisis of 2009, following the crash and burning of the home mortgage industry. Taxpayers wanted answers to why their money wax going to bailout billionaires and their companies. And instead of letting it happen again the idea of the CFPA was brought about by Harvard Professor Elizabeth Warren. Her goal was to set-up regulatory practices before America’s financial system ever was faced with this “type” of issue again.

The biggest problem that the personal loan industry has with the CFPA, is the fact they are getting lumped into new regulation, based on a problem that they didn’t cause. Payday loans were NOT the downfall of the American Economic banking system, it was the traditional loan industry that caused the crash of our market. Payday loans deal with “main street” customers NOT “wall street”  and feel that regulation on their industry is uncalled for and unjust.

What do you think about the new CFPA

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