Payday Loans Blog

Payday Loans are an essential credit option to those in financial distress.  If you suffer from chronic budgeting problems the industry is here to help you solve your short-term credit crunches.

Industry critics are quick to point out that many borrowers in the payday loan industry have lower incomes and tend to come from poor areas of the country.  Although not coincidental, the average person would be surprised to find out just what type of people do avail payday loans.

When you take into consideration the alternatives, payday loans do make sense, and many of the financially sound individuals in this country are catching on as well.  Consider the following situation:

You have paid all of your bills except the utilities bill that is scheduled to be drawn from your checking account in two days.  You are short on the cash to cover the withdrawl and need $100 to make sure you don't go negative in your account.  What are your options?

1. You can borrow from a family member or friend.

2. You can allow the transaction to go through creating a negative balance in your checking account.  But, you will pay $30 in overdraft fees from your bank.

3. You can get a payday loan and pay $15-$20 in fees if you keep the loan out for the full two weeks.  Less if you pay it back early.

So, you tell me.  What looks to be the wise financial decision here?  Of course you should try and borrow the money interest free from a family member or friend.  If that doesn't work it makes sense financially to borrow from a payday lender.

Since there is no other option in the financial industry, the payday lenders have taken a step forward and allowed people to borrow even if they have poor credit.  Critics should be applauding the industry instead of trying to tear it down.

Payday Lenders are the blue collar individuals willing to stick their necks out on the line for someone in need.  I don't see any banks or credit unions willing to jump into the game, do you?

PROVO, Utah – July 31, 2008 – CheckCity.com (http://www.checkcity.com) has been authorized and licensed by the State of Illinois to offer payday advance loans and began offering cash advance loans to residents of the state on Thursday.   

Payday loans are designed to meet short-term (on average two weeks) obligations.  Cash advances are designed to help people meet unexpected bills and expenses.  Depository institutions do not typically underwrite short-term, low-cost unsecured personal loans, as they are not able to recuperate the processing costs associated with issuing these types of loans.  This leaves a much underserved need that payday advance companies such as CheckCity.com fill. 

CheckCity.com is market leader in efficiency and customer service.  After a customer requests a loan, Check City.com deposits funds directly into the customer’s bank account, usually by the next day.  The approval process for residents of Illinois is simple and straightforward.  Customer service associates are available to assist applicants and customers via telephone, email, or directly via LiveChat through the CheckCity.com website which makes the process very simple.   

Fees associated with Check City’s payday loans in Illinois provide an attractive alternative to more expensive options like bounced check and overdraft fees, to late fees charged by credit card providers and utility companies.  Payday advance loans from CheckCity.com are some of the most affordable available.  Because CheckCity.com is able to offer its loans via the Internet, it can pass on savings to its customers while continuing to provide loans under Illinois’ consumer-friendly cash advance statutes.  

The recently updated and user friendly CheckCity.com web site (http://www.checkcity.com) allows applicants and borrowers to view and update their personal information, review their loan history, make payments, or even pay off their loans early.  The use of the Internet adds convenience and privacy to the customer’s experience. 

“Check City has utilized cutting-edge technology coupled with a progressive attitude towards customer care to service short-term borrowers across the United States.” says Adam Gibbons, General Manager for Check City Online.  “We will continue to bring that same level of service to Illinois, while striving to make the online borrowing experience better for our customers.” 

Here is what customers from other states have to say about the CheckCity.com payday advance loan service: 

“Your company has been the best company I’ve dealt with. Thank You!”  -Jenny in California 

“Thank you. Your company always has the best customer service!” –Katie in Alaska 

More information on payday advance loans in Illinois and other states can be found on the CheckCity.com web site at http://www.checkcity.com/. 

About Check City

Check City has been in the business of providing payday advance loans and check cashing services for over fifteen years and has approved over 750,000 loans.  CheckCity.com is now licensed and approving loans in twenty different states with plans to offer loans in over thirty states and throughout the Western Hemisphere and Europe.

People often find it hard to make their paychecks stretch over all their expenses.  Then when a financial crisis arises, there is no money to take care of it.  The short term loans that exist are usually called cash advances, payday loans, or payday advances.  Most payday lenders are interested in helping people when they need money in a hurry.

Payday lenders have been around for a couple decades now and are growing in popularity.  There are literally thousands of locations of different companies all over the United States.  Thanks to the internet as well, there are thousands more available at our fingertips.

These companies fill a niche that more traditional lending institutions cannot or will not. When you need a few hundred dollars for something pressing you obviously don’t have the time to go through a very tedious application and approval process and credit check.  You can get the money in your hand or your bank account by the next business day in most cases.

I would like to stress the importance of using short-term loans responsibly.  This is merely an interim solution to emergent circumstances.

For instance if your car breaks down or your furnace breaks in the middle of winter and you don’t have the money, payday loans online will advance you enough to take care of the situation.  Most people end up paying their loan back by their next paycheck.

Sometimes a person may find that they need more than just a couple of weeks to pay back a loan.  Legitimate lenders in the United States are required to adhere to state and federal regulations but usually they can allow a few rollovers or extensions when needed.  If you find that you are unable to pay your loan back and you have exhausted all your extensions, then you will most likely be referred to some credit counseling to help with your money management issues.

Credit counseling companies will go over all your debt with you and your payments and work with you to set up some lower interest rates and perhaps some lower payments.  They will talk to you about your debt to income ratio and give you ideas on how to cut your spending and save money.

But for the most part, people who take advantage of these types of payday loans do well with them.

When you are dealing with the stress and headaches that come from bad credit, life can be very frustrating.  There are thousands and thousands of people who balk at the very mention of “credit”.  Usually, this is because of the many events that have lead up to a bad credit rating.  Once you are caught in the web of dealing with bad credit, it can feel daunting to find your way out.

When an emergent situation occurs or some kind of financial issue arises, you can find peace in knowing that there are options out there for you.  Having bad credit will not keep you from finding the help you need.  You can get what you need in a short amount of time, believe it or not.

You might think otherwise, but there are many financial institutions that make their business helping people in their time of need…even those with bad credit.  These companies offer payday loans for people with no, or bad credit…which is just what you need when in a pinch.  It may feel like you have won the lottery to finally find the help you need, especially if you have debt racking up from medical expenses, or car repairs.  This can be devastating if you don’t have the funds to take care of these issues.

The process is simple, really.  You fill out an application, either online or in person, submit it and then wait usually an hour to find out if you’re approved.  Once approved, you will be on your way to taking care of your pressing financial concerns.

Payday advances are a growing industry as more and more families are taking advantage of the ease of cash advances.  Most do actually get approved even with bad credit.

And don’t misunderstand; there are many people even with good credit that take advantage of payday loans online.  It can be a hassle to apply for a loan at a bank and can take days or even a couple of weeks to get the cash needed from that kind of financial institution.  Payday loans are for all kinds of people with all kinds of circumstances.

The key to getting a payday loan is this:  do not borrow more than you need.  Payday loans can get very pricey when you borrow too much and take too long paying them back.  Use this only in an emergency and you will come out fine.

Have you ever noticed when someone does not understand something, they fear it and condemn it?  This has been happening in the world since the beginning of time and we may not see much of a change in the near future.  For those of us who have had our minds open, we must be the catalysts for change and assist those with closed minds to accept new ideas.

Payday loans fall into this category.  These are the most misunderstood loans out there.  There’s lots of information out there that down play the benefits of payday loans and insist they are bad, sick and wrong.  The main argument is that they are expensive.  The fact is that yes, payday loans have high interest rates but since they are short term, the interest is not usually very much on top of the actual money borrowed.

People generally find themselves short on cash from time to time and things tend go wrong in groups.  When it rains, it pours, right?  Cash advances can help in a pinch.  They are not meant for gross amounts, nor are they meant to be long term.

You do need to be 18 year of age to apply and you need to have a regular source of income.  You usually have to show your paycheck stubs to prove this and you also need a current bank account.  If those requirements are met, you can usually apply on the internet, or walk in to a location, where the application can be completed typically within an hour.  You can usually get your money the next day or right on site.

So what is the big deal about payday advances?

As mentioned above, it's the confusion of calculating an APR on a two week loan.  The truth is that payday lenders do not charge their interest in the way that most conventional lenders do.  Their charges are translated into the traditional APR and then the result is quite significant.  This is where people get confused.  The charges for payday loans need to be taken for what they are and not turned into something else to upset or confuse people even more.  Payday lenders charge a fixed fee for every certain amount borrowed.  For every $100, there may be a fee of $15 or $20.  That’s it.  I hope that clears up some of the confusion.

So why would you need a payday loan?  Well, as I mentioned at the beginning, you may have an emergency like car repairs, a dental or medical bill, or simply groceries for your family.  There are other good reasons to get a payday loan online, but we won't go into those any further.

For instance, most people are unaware that the very day they are late on a credit card payment that their interest rate jumps significantly.  Some creditors don’t even give their customers a grace period at all.

Most of us get paid every two weeks.  Well, when your paycheck lands one to two days before your credit card bill is due, what are you going to do?  Payday loans are just that, loans ‘til your next payday.  This is a great reason to take advantage of this useful service.

Now, this type of loan should not be taken out on a consistent basis.  People can easily find themselves in debt and in trouble quickly.  If a person can’t pay a payday loan back in the timeframe decided upon, there are usually very steep fees.  This is when these loans differ from typical loans.  They are able to charge large fees and interest rates to make up for your late or non payments.  And like any other typical loan, if you don’t pay, you are usually taken to collections.

The key is being smart with your money.  If you find yourself in trouble financially frequently, I would suggest consolidating your debt or filing for bankruptcy.  But for most people, they are able to use this type of loan in a smart way and save themselves hassles in the future.

Be a smart consumer and know what you are getting into before your sign your name on the dotted line.  If you have trouble understanding the contract, get help from a family member or an attorney.