Installment Loans Info Center

Informing The Public About Installment Loans

With the current situation our economy is facing, small businesses are struggling.  According to a business start-up source, small business failure rates for the first part of 2013 are at 85%.  This may sound discouraging, especially for those who intend to start a business on their own.

Unfortunately, even those entrepreneurs with the best intensions and education to back them, fall prey to hard economic times.  They may make business decisions that ultimately harm their company and/or their credit scores. Thus, these entrepreneurs turn to small business loans in order to stay afloat.

Entrepreneurs can turn to payday installment loan lenders. These lenders offer funding and financing for small businesses. If you have damaged credit and are on the verge of closing the doors of your business, payday installment loan lenders have business loans that are right for you and that fit your unique situation. Taking out a loan from a payday installment loan lender compared to a large bank has many benefits that will meet the urgent cash needs of your business.

Flexibility

Unlike traditional bank loans, taking out a business loan from a payday installment loan lender offers amazing flexibility that you won’t find with a larger credit institution that has strict and often impossible guidelines to follow. You can use the funds in any way you need it without a bank looking over your shoulder and dictating rules.  Furthermore, you have control over the loan because credit lines can be used at your discretion and timing.

Quick

In business, time is valuable. There are lots of purchases needed and bills to be paid. Unforeseen inconveniences can take place that can ultimately ruin a business unless the matter is immediately resolved. Every hour that passes that you fail to purchase the things needed for your business, you are losing money and customers. When you apply for a business loan with a bank, it can take a week or more to be approved. But with payday installment loans, you can be approved for a business loan and have the funds within 24-48 hours.

No Credit Check

Unlike most traditional lenders and banks, you need to have a good credit standing in order to be approved. This is why those with bad credit and poor credit scores turn to payday installment loan lenders because this is not a problem. When you take out a business loan with lenders of payday installment loan, no credit check is performed. So even with a bad credit and poor credit rating, you can be sure that you will be approved for the business loan.

Applying for business loans with a payday lender is a smart way to go about saving your business. There is no time wasted and you don’t have to put up collateral. You don’t need to put your valuables at risk in order to be approved of a business loan. Most of all, you can be approved despite having bad credit.

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Are you having a hard time making ends meet and payday is still days away? Has your car suddenly broken down? Are their major repairs in your house that need to be immediately addressed? Do you have overdue bills and have no one to turn to because of bad credit?

Then, worry no more. You can apply for payday installment loans, any time and quickly. A payday installment loan, also known as payday advance or a paycheck advance, is basically a short term loan that can help you address your instant needs and is be repaid on your next payday. Lenders of payday installment loans offer services that are easy and convenient.

Taking out payday installment loans can help you get through until your next paycheck. Generally, anybody who is working and/or possesses a verifiable of income can apply for payday installment loans. However, the rules and regulations of each payday installment loan company may vary. Typically, lenders charge a $20 standard fee on every $100 borrowed. In some cases, there are other lenders who charge more but some will charge less for a payday installment loan. So, you should check the different options and choose the one which really suits you.

Requirements for getting payday installment loans:

Generally, most lenders of payday installment loans will do a thorough check of the bank account of the borrower along with the following:

·    The borrower must have a proper source of a regular income.

·    His/her bank account should be in a good condition

·    The borrower must supply proper proof of identification.

Different types of payday installment loans

·    Bad credit payday installment loans: These loans are offered by lenders to those who are caught in a vicious cycle of debt. The companies which offer bad credit payday installment loans usually go through your credit history and interest, fees and other charges are based on this information.

·    Fast payday installment loan or fast cash loan: With this type of loan, you can easily get instant cash within twelve hours after submitting your application. Fast payday installment loans let you take care of your urgent needs and other overdue bills. You can get a loan from hundred dollars to fifteen hundred dollars. However, borrow only the amount you are only able to repay.

·    No fax payday installment loan: Some lenders and payday installment loan companies used to ask the borrower to fax them every type of information about themselves and their salary. Contrary to this common set-up, the “no fax payday installment loan” only requires you to be 18 years of age and possess a bank account along with a regular income. All the transactions with your payday lender will be accomplished electronically and so you get the instant cash you need in the soonest time possible.

With the advent of technology, many instant needs for cash have been addressed. The Internet has helped many cash-strapped individuals to locate lenders who understand their problems and specific cash needs. It is also suggested that borrowers do a little research and apply for payday installment loans sensibly. Pay special attention to how you are going to repay the loan at the earliest time possible to lead a stress free and happy financial life.

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When a lender of payday installment loans lends you money, it always comes with some fees. These fees are often called service fees or interest rate fees (usually calculated as APR). Understanding the cost of a payday installment loan is important to help you make an informed decision and keep yourself aware of what lies ahead for you when you apply for such loans.

The service fee or the interest rate charged by lenders to borrowers of payday installment loans is basically the price paid for getting an unsecured loan and the risk on the part of lenders for not requiring credit checks on the borrower. Typically, a lender extends the loan to the borrower using a bank account and pay stubs. In case a borrower cannot pay back the loan in time, usually two weeks, the lender offers payment extensions called a “roll over”. When a loan is rolled over, the amount payable will be extended for a defined period of time and additional fees will be charged.

As per the federal law, all payday installment loan lenders are required to disclose the interest that they will be charging and provide a copy of the borrower’s rights. If there are questions asked from the borrower, lenders must answer all inquires to the borrower’s satisfaction. This is why most professional lenders have qualified customer support executives to cater to such queries from borrowers.

Most lenders of payday installment loans charge interest APR rates. The annual percentage rate or APR can be defined as the annual interest rate (including all additional costs) that corresponds to a specific sum of money.  Also, APR is the financial relationship existing between various variables, such as the principal loan amount, the interest rate, the loan term, and the additional loan charges. The additional fees included in calculating the APR on a payday installment loan are:

·    Origination charges and discount fees

·    Document preparation fees

·    Underwriting charges

·    Pre-paid interest charges

·    Loan processing charges

·    The Bond fee

Generally, the calculation for the APR varies from lender to lender. The commonly-used and scientific method is the Newton-Raphson method where the annual percentage rate is treated as an independent variable with a value based on the loan amount, the duration of the loan, and additional charges. For the average consumer of payday installment loans, this mathematical method is a bit complex and can be time-consuming. So, it is more convenient, fast, simple and practically effortless for short term loan borrowers to utilize an online calculator to estimate their payday installment loan payments. This tool enables them to calculate the costs associated on the total amount of the loan offered by a payday installment loan lender compared to a standard loan.  With an APR calculator, borrowers need to enter the following information:

·    The principal loan amount or the actual amount of money borrowed

·    The additional cost or the total finance rate

·    Interest rate paid for the duration of the loan

·    Number of months for borrowers to pay back the loan

Generally, the average payday installment loan carries an APR of 470%. For a $100 loan, the finance fee is usually between $15 and $30. The finance charges on a two-week loan will translate into an APR ranging from 390 to 780%.  It is therefore very important for the borrower to understand the cost of the fees that his lender charges for borrowing money. Consumers should be able to find the best deals when applying for a payday installment loan with this information.

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Usually, when a payday installment loan lender lends you the money for a loan, it always includes some fees. These fees are often called service fees or interest rates (calculated as APR). Understanding the cost of a payday installment loan is important to help you make an informed decision and be aware of what fees are included in a payday installment loan.

The service fee or the interest rate charged by lenders is basically the price you pay for getting the unsecured loan and the risk on the part of lenders for providing no credit checks on the borrower. Typically, a lender extends the loan to the borrower against a bank account and pay stub details and expects the loan to be paid off within two weeks. In case a borrower cannot pay back the loan on time, the lender offers payment extensions called a “roll over”. When a loan is rolled over, the amount payable will be extended for a defined period of time and an additional interest and fees will be charged.

As per the law, all payday installment loan lenders must disclose the interest and fees that they will be charging and give a copy to the borrower. In case of inquiries from the borrower, they must answer questions to the borrowers satisfaction. This is why many professional lenders have qualified customer support executives to cater to such queries from borrowers.

Most lenders of payday installment loans charge APR interest rates. APR can be defined as either the annual percentage rate (including all additional costs) that is paid by the borrower or a measure of the cost of borrowing tabulated as an annual interest rate.  Also, APR is the financial relationship existing between various variables, such as the principal loan sum, the interest rate, the loan term, and the additional loan charges. The additional fees included in calculating the APR on a payday installment loan are:

·    Origination charges and discount fees

·    Document preparation fees

·    Underwriting charges

·    Pre-paid interest charges

·    Loan processing charges

·    The Bond fee

The calculation for the APR varies from lender to lender. The commonly used and scientific method is the Newton-Raphson method where the annual percentage rate is treated as an independent variable with a value based on the loan amount, the interest rate, the duration of the loan, and additional charges.  For the average consumer of payday installment loans, this mathematical method is a bit complex and can be time-consuming. So, it is more convenient, expeditious, simple for short term loan borrowers to utilize an online calculator to estimate their payday installment loan payments. This tool will enable them to calculate the fee amount for a loan offered by a payday installment loan lender compared to a standard loan.  With an APR calculator, borrowers need to enter the following information:

·    The principal loan amount or the actual amount of money borrowed

·    The additional cost or the total finance rate

·    Interest rate paid for the duration of the loan

·    Number of months for borrowers to pay back the loan

Generally, the average payday installment loan carries an APR of 470%. For a $100 loan, the finance charge is usually between $15 and $30. The finance charge on a two-week loan will translate to an APR ranging from 390 to 780%.  So, it is important for the borrower to understand the cost of the fees that his lender charges for his borrowed money. This is why consumers are advised to find the best deal when applying for a payday installment loan.

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During a tough financial crisis, many people turn to payday installment loans for help. A payday installment loan is a short-term loan offered by lenders to people who need quick cash. This popular financial resource is available anytime because of its online application.

However, since most of these loans must be repaid in short-term, usually two weeks after the approval of the application, many are unable to pay on time. Many borrowers get caught up in the cycle of accumulated fees and finance charges.

In case you are one of those borrowers who is unable to pay your payday installment loan on time, you may negotiate with your lender. These are the things you should do:

1.   In the case where your lender calls you, do not avoid it. Avoiding your lender will not resolve the issue and they will only continue bothering you. It is better if you can approach your lender and have any documentation that reflects the current status of your finances. This will prove that you are unable to pay your payday installment loan but are willing to negotiate a new repayment plan. Talking with your lender will help both of you find ways and options on how to come up with a new repayment plan.

2.   You can offer your lender a payment plan that will enable you to pay your loan. Determine your principal amount and the interest of your monthly payment. Calculate your desired reimbursement plan that will help you cope up with your missed payments. Set-up a payment plan that is affordable and convenient for you. What matters most for lenders is to see a good payment plan that will repay the loan in a timely manner. Don’t wait with this option since most state laws allow a payment plan for borrowers who are unable to pay their loans.

3.   It is important that you know the laws in your state in case you are unable to pay your payday installment loan on time. Each state may have different rules and regulations on how payday lenders should deal with payment defaults, but the law requires them to provide options for their customers. In fact, some states put interest rate caps on their payday installment loans. The annual percentage rate should not be more than the cap amount. Also, some states require lenders to provide payment arrangements but this varies from state to state. Consumer protection laws are enforced to prevent predatory activities of some lenders.

4.   There are some cases that lenders put the responsibility for the collection of a defaulted payday installment loan  into the hands of collection agencies. These agencies are in charged of calling you and getting your payment. In this case, you may settle with them for one lump sum at a discounted rate. They will be willing to work with you.

5.   In most cases, you may consider applying for a debt consolidation loan. This will help you put your various loans into one payment that will be easier for you to repay.

6.   If your lender refuses to negotiate with you, prepare a backup plan. You may consider borrowing from your family or friends, ask your employer for a cash advance, or take out another loan that will roll over your first loan.

Whenever you decide to take out a loan, remember to pay it responsibly. Not paying your loan will lower your credit score which may hinder your chances of loan approval in the future. In case you are unable to pay your loan, negotiate with your lender early. But, remember to make payment arrangements that you can afford to keep.

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Due to the urgent need for quick cash, most borrowers of installment loans fail to read the loan agreement diligently. Most lenders, however, do not thoroughly explain the contents of their loan agreements either. So, it is important for borrowers to take time and read all the fine prints on their loan agreement before signing in order to avoid future complications.

Reading the very specific details on your loan agreement will not only protect you from some predatory practices of lenders, but will also help you know your rights as a borrower and consumer of installment loans. As a consumer, you need to know every single valuable information and term within your loan agreement. Here are some provisions on your loan agreement that you need to be aware of:

  • Contact Information of the Lender

The lender’s contact information should be stated clearly in your loan agreement. This should include the lender’s company name, address, phone or fax number, and an email address. This information is important in case of inquiries and assistance.

  • List of Interest Rates and Other Fees

Your loan agreement with your lender should include a list of interest rates and other fees. This must be stated clearly and completely. It is even more preferable if you let your lender explain these terms to you. Find the APR, and let your lender calculate the exact amount you need to pay per month for your installment loan. Also, let your lender discuss the fees for late payments or bounced checks and what options they can offer to avoid this.

  • Payment Obligations

The repayment schedule and extensions must be clearly explained in the loan agreement. Ask your lender if there are additional fees for payment extensions and other options they can offer in case of payment defaults. Look also for the statement: “You cannot be prosecuted in criminal court for collection of this loan.” This statement is important because it means that you can’t be arrested for not paying your loan or end up in civil court.

In most contract or loan agreements with installment loan lenders, not all of the terms and conditions are clearly stated and emphasized. These hidden terms will only be revealed after the borrower has signed the loan agreement and later when they are asked to pay for a fee that they were not aware of before. With this, different regulatory laws are implemented to keep these lenders from abusing their consumers. Now, lenders are required to include a disclosure box stating clearly all the terms and conditions in a loan agreement.

Nevertheless, it is still in the hands of the consumer to prevent lenders from preying on their financial woes. Before taking out an installment loan, you need to examine your loan agreement carefully to protect yourself against these untrustworthy lenders. You need to know the legal and illegal terms included in your loan agreement. Here are some illegal stipulations that you need to watch for before signing an agreement with your installment loan lender:

  • Annual Interest Rates

Different states have different provisions of how much lenders can charge on interest rates for installment loans and other short-term cash loans. However, most states cap on interest rates does not exceed 30% annually.

  • Membership Fees

Some lenders charge a one-time membership fee, usually about $10 to $15 to first time borrowers. Before paying, check first with your state laws to see if this fee is allowed and legal.

  • Service Fees

Although service fees are permitted by law in most states, there is a maximum limit that lenders must follow. If the lender charged you more than the limit stipulated in the law, you can take legal action. Service fees are charged for loan processing, verification, handling, and origination.

  • Rollover, Renewal, or Extension Fees

Before getting an installment loan, it is important to know your state laws regarding the maximum number of rollovers, renewals, or extensions your lender is allowed to give you. Beware of lenders who have rolled over or renewed you loan several times more than the maximum legal amount.

If your loan agreement does not contain or state clearly the necessary information or may contain illegal entities in violation of the stipulated laws regarding responsible lending, you’re better not sign the loan. You can shop for other lenders or loan companies that will offer you better terms and trustworthy contracts.

 

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