Payday Loans Blog

Now that we're just two days away from tax season, I thought it would be important to announce that Check City is offering 10% off your tax preparation this year at your local Check City.

If you've never done your taxes with us before please stop by and we'll take care of them for you.  Just bring your W-2 form and we'll do the rest!  To find your nearest Check City Location please visit our website.  We hope to see you in one of our stores soon!

In store tax preparation starts at $39.95 and online tax preparation starts at $19.95.

In a study just released by Bretton Woods, Inc. they have shown that NSF fees charged by banks and credit unions have risen again in 2008 to a startling $28.95 per transaction.  They have also concluded that the average US household with a checking account incurs 12.7 NSF fees per year.

While these findings seem shocking it gets worse.  The average US household pays approximately $368 annualy in NSF fees.  The banks and credit unions show a total of 1.28 billion NSF transactions for the year in 2008 for a grand total of $37 billion in NSF fees.

You can read the whole study at http://bretton-woods.com/452/18901.html

There is no wonder why there is such a big market for payday loans in the United States.  Too many people are living paycheck to paycheck.  We need to get back to the times when families learned how to manage and live on a budget.

With the average payday loan fee being $15 for every $100 borrowed, if these people had taken out a payday loan instead of incurring a NSF fee the country would have saved approximately $19.2 billion in 2008.  I find it interesting that the critics are trying to shut down the payday loan industry when the banks and credit unions cost the nation that much money this year.

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?

Check City, a leading company in the financial services industry, is proud to be opening their newest store, located in Ogden on the southwest corner of 12^th and Washington Blvd.  The new store transferred employees in from other already existing stores offering a familiar face to customers using their services.  Cash advances, check cashing, tax preparation, and many other services from this store are available Monday through Saturday from 8 a.m. to 9 p.m. and from 10 a.m. to 5 p.m. on Sundays.

Since 1986, Check City has met the range of needs of their countless customers by providing financial help through several types of loans, extended operating hours in the evenings and during the weekends, and all of it with bi-lingual assistance.  They have continually offered short-term cash advance loans at rates of 43% below their competition, the wide variety of check cashing, Western Union money transfer services, payday loans, free money orders, stable mortgage solutions, and auto, home, and life insurance.  They will even prepare your tax returns.

The opening of the store means great savings for customers.  Until December 31^st in only this Check City location, customers will receive up to $9.95 off of check cashing when they buy a cash-in card, which is a prepaid Visa card.The new Ogden store is at 1207 Washington Blvd. and can be reached by phone at (801) 528-5333 and by fax at (801) 528-5334.  Please use responsibly.

Media Contact:

Wendy Gibson

(801) 528-5333

wendyg@checkcity.com

Check City, a leading provider of short-term financial services, was presented its second Activa service award during the 20^th annual Financial Service Centers of America, Inc. (FiSCA) Annual Conference in Las Vegas, Nevada.  The award was presented by FiSCA to Check City for its critical role in raising funds on behalf of Foundations for Independence a not-for-profit organization committed to advancing the independence, productivity and full citizenship of people with disabilities.

During the holiday season of 2007, Check City locations in Utah ran its program, “Change for Change.”  Check City’s customers were encouraged to donate their change from check cashing and cash advance transactions to help people with disabilities gain independence.   Check City matched each contribution penny for penny and dollar for dollar.  The general public was encouraged to donate as well through an in-kind public awareness campaign sponsored by Utah’s local ABC television affiliate.   Foundations for Independence received thousands of dollars in financial support though the efforts of Check City, its employees and customers.    Much of the funds raised went to the group’s equipment purchase assistance program and family respitality program.   Those interested in contributing to Foundations for Independence ongoing efforts may do so via their website.

According to FiSCA, the group launched the Activa Awards program in 1999 to honor outstanding examples of the positive community involvement activities of its members throughout the country.  The response to the program was so positive that the Association decided to make the Activa Awards an annual event.  As each year passes, the Activa Awards bring greater distinction and a better understanding of the pivotal role financial service centers play in making America’s neighborhoods a better place to live and work.

Last year, Check City received the same service award for its ongoing participation in United Way of Salt Lake’s “Homefront Response” program.   This campaign provides funding for families of local military service member to help pay for utilities, rent payments, and other expenses while the head of the household serves in Iraq or Afghanistan.   In total, Check City and its customers have contributed over tens of thousands of dollars to this program as part of its commitment to help troops win the war on terror. 

Check City first opened its doors to residents of Richmond, Virginia in 1986.  Since that time the company has expanded its store front financial service operations to over 70 locations in Utah, Nevada, Maryland, Virginia, and Colorado.  In addition to providing check cashing and payday loans, the company also offers vehicle title loans, pre-paid debit cards, auto insurance, wire transfer services, and tax preparation assistance.  Since 2002, Check City has provided its cash advance services to residents in 20 states and plans to expand its services into additional states and countries through 2009.   Check City is a proud member of FiSCA, the Community of Financial Services Association (CFSA) and other trade organizations committed to providing payday advance loans as a safe and viable credit option for consumers.   Check City is committed to providing assistance and support to local causes that improve the quality of life for many Americans.

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.

Scams revolving around refinancing are making headlines these days.  If you are considering financing your home, please read this entire article.  It may save you a lot of money in the long run. 

Refinancing lenders who are trying to scam the public will teach their representatives how to manipulate customers into loans that are not in their best interest.  There is even some psychology that goes into teaching their employees how to do this.

When a lender looks at your loan application, they are typically looking at three things:

1. Your FICO score.

2.  Late mortgage payments
3.  Any bankruptcies you may have

Anything else is irrelevant to your loan approval.  They will not look at your credit card payment history, auto payment history, student loans or collections or charge offs.  Why is this?  Because your FICO score is the numerical value that takes into consideration all of these factors and puts them into a number ranging from 500 to 800.

If you are late on your mortgage payments this will usually increase your interest rate.  Bankruptcies will also increase your rate or give you instant denial for a loan.

Below is a tactic that you should be aware of:

Why is this something to be aware of?

The worse your credit history is, the more power the loan officer will have against you to try and manipulate you into accepting a loan that is not good for you.

The majority of loan officers know exactly what type of loan you can be approved for the minute they pull your credit.  There is no reason for them to dig into your past any further.

If you experience any of this with your loan officer, I suggest you find another reputable lender to work with and save yourself the money and the headaches.

When you apply for credit or financing, your credit report will be pulled electronically from any three major consumer reporting agencies.  These are Experian, Trans Union and Equifax.  They are responsible for maintaining correct and up to date credit information for people around the globe.  Obviously they are maintaining billions of records and are therefore not very effective in finding errors to individual reports.

This is the very reason why we as consumers are responsible for checking our own credit reports.  Make sure that you get a copy of your credit report at least once per year.  You are entitled to get one free copy per year.  If you have been denied credit in the past 60 days you are also entitled to receive a free credit report.  Below is a list of each credit bureau.

• Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111.
   
• Experian(formerly TRW), P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).
   
• Trans Union, P.O. Box 1000, Chester, PA 19022; (800) 916-8800.
   

You can also use the internet to get your credit report.  Many companies will give you instant access to your report online and will offer it free if you try their credit monitoring service for a limited time.  These are great services to keep track of your credit and stop identity theft in its tracks.  When someone applies for credit in your name and SSN, these services will notify you via email.  If you did not request this credit then you just log into your account and alert the credit bureaus of potential fraud.

The information on your credit report is used to evaluate you when you apply for credit, insurance, employment or other purposes allowed by the Fair Credit Reporting Act (FCRA).  It is crucial that you review your credit for accuracy at least once per year.

When you monitor your report you will save yourself future problems when you apply for new credit or if you are considering the purchase of a new home.  When you know what is on your report you can clear up any inaccuracies before you even apply for new credit.  In doing so, you will avoid any issues before they arise.

When you find inaccurate information do the following:

• Verify discrepancies as soon as possible.  The credit bureau says that a reasonable amount of time is usually 30 days.
• Dispute the information.  You can either do it one at a time or all at once.
• Write a dispute letter.  Don’t just copy a form.  They will take you more seriously if you write it yourself rather than doing what thousands of others have done before.

The credit bureau is required to investigate claims and if they cannot confirm within a reasonable amount of time then the credit record must be taken off your credit file.  They also must provide you with a free copy of your credit report that was fixed.

Make sure your dispute goes to all three credit bureau companies. If by chance they decide that the information must stay on your report, then you can add a letter of explanation to your report so that future lenders are aware.

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.