Payday Loans Blog

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.

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:

• Your FICO score
• Late mortgage payments 
• 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.  Your loan officer will talk with you about your credit history.  They will ask pointed questions regarding late credit card payments or other non-mortgage related issues on your report.  You may be asked to provide explanations of why you were late with those payments.

Why is this something to be aware of?

Because they are irrelevant to your loan approval as was mentioned above.  You should not be having any discussion regarding your other credit issues.  When they discuss your credit issues with you, they are making you feel insecure about your history so that you will be less likely to search out another lender.  When you open up about your personal life, this creates a stronger bond between the two of you.  You will then be more appreciative of the loan you end up being offered.

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.

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 a cash advance, payday advance, or payday loans.  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 who offer payday loans online.

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, a payday loan 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.

A lot of advice that exists about how to lower your expenses revolves around debt consolidation if you are deeply in debt. It is recommended to pay debts as soon as possible.  This advice does not fit everyone though and the following tips may be useful to you.

We are talking about how you can spend less money in your day to day affairs.  Some of these tips are simply common sense but you may not have thought of them before.  You should be able to save quite a bit of money if you pay close attention to the details in your daily life.

Let us examine how you eat.  As you may know, eating out can be expensive.  Even if you eat at cheap places, in the long run, that all adds up.  If you are truly trying to spend less money then you should avoid eating out.  Some of you may wonder how you will feed yourself at work.  Most employers have a fridge and a microwave available to staff.  Prepare your lunch the night before.  If sandwiches don’t sound appealing for every day, then make just a little extra dinner the night before and take leftovers. Not to mention that this tactic is healthier for you as well.  You don’t have to eliminate restaurants completely, just minimize them to save that extra money.

Still on the topic of food, buy your produce from local farms or at local farmers markets.  This can save you a lot of money that is usually spent on paying for the shipping costs from grocery stores.

Do you still read the newspaper?  If reading the paper with your morning coffee is something you can’t eliminate then skip past this part.  But, with the internet revolution, the news is posted all over your computer and you don’t need to worry about cutting trees to make paper and hurting the environment.  Most times, reading the news online can be absolutely free.  Even if a small fee is required to read your favorite newspaper online, it will still be cheaper than if you had a physical subscription.

Cut back on your utility bills.  Try to use fans and open windows in hot weather instead of turning on your air conditioner every time it gets a little warm in your home.  You will also be consuming less energy. The same goes for your heater.  Turn the lights off when you leave a room.  Even if you will be going back in that room in a half hour, that is one half hour of paying for electricity that you didn’t use.  Unplug your electric appliances at night.  This will save a little money but it will also help the environment immensely.

Buy second hand clothing, especially for your children.  Children grow out of clothing so quickly that it seems a waste to spend $40 on jeans that will be worn for a year or less.  Even for adults there are some very nice consignment shops.  This doesn’t mean that you need to buy clothing that has holes or stains.  For jeans and plain old play clothes, buying second hand can save you hundreds of dollars.

Research your purchases, and comparison shop.  Have you ever bought something and then found it somewhere else for significantly cheaper?  If you look around first, you can avoid this situation completely.  Along those same lines, if you shop around at thrift stores and yard sales, you can usually find some every day items for very cheap.

With some of this advice you can cut back your spending.  Once you see that money back in your account, use it to save!

This post touches on several issues that plague people all over the world.  The first is a no brainer:  Credit card debt.

Credit card debt is something that gets so many people upside down that they can’t tell which way is up.  It may seem like a good idea to buy this or that when you deserve it but you are spending money you don’t have.  This can add up and before you know it you are neck deep in fees and balances that will take you years to pay off.

The first piece of advice I have for this situation is to stop buying things you don’t have money for.  Cut back on things that are not necessary like too many minutes on your cell phone, cable TV or DSL if you don’t use the computer that much.  Take this money and add it to your payment on your lowest balance.  Once that has been paid off, take the extra money you added and your former payment and add them to your payment to your next lowest balance.  Your balances will start dropping more suddenly than if you just stretched your money over multiple bills.  Stay dedicated and you will find yourself out of debt faster than you realize.

Once your debts are paid off, take that money and save or invest and your income will grow.

The next situation I’d like to talk about is spending without saving.  You may spend only money you have and not use your credit cards for it, but what peace of mind are you giving yourself for retirement?  If you’re counting on your children to take care of you, then good luck with that.  Take financial responsibility now and save your money.  Pay the money it requires to get help with an investment portfolio and start allowing your money to grow.

The third situation I am going to touch on is identity theft.  Most of you don’t even know what your current credit score is.  It is your responsibility to find out what your credit report looks like.  Identity theft is a huge problem all over the world and it doesn’t take your SSN to steal your life.  Sometimes all it can take is your name and address.

Thieves will not only buy things in your name but they will get medical care in your name as well.  Can you imagine going to the hospital and being told you have a horrible disease when in fact, you do not?  Identity thieves will also commit crimes in your name.  This could spell disaster for you for a long time.  The first thing that most thieves will do is use your name to buy things, if that works and no red flag is raised, they will move on to bigger crimes.

Check your credit report, pay for it if you have to, and analyze it to pieces!  There could be things on there that aren’t related to you at all.  There could be a bill you paid off years ago that wasn’t taken off and is still affecting your credit rating.

There are simple ways to protect yourself that will leave you and your family grateful for a long time.

1. Universal Default Penalties - Credit card issuers check their customers credit reports for any late payments on any other credits. Any late payment can be used as an excuse to increase your credit card's interest rate, even if you have never made a late payment to the card issuer.

A recent study by Consumer Action, a San Francisco-based consumer advocacy group, found that 39 percent of credit cards had universal default penalties in 2003. This year the figure jumped to 44 percent.

3. The Small or Non-Existent Grace Period - Usually, grace periods used to be 30 days long. They now average 23 days, and some issuers have lowered the grace period to 20 days. Some cards have no grace period at all.  And the very day you are late, your interest rate will be increased.

4. Two-Cycle Billing - While most card issuers use the standard one-month method to calculate interest charges, some use a method that calculates interest on two previous months' balances. Companies compute interest charges on your average daily balance by adding each day's balance and then dividing that total by the number of days in the billing cycle. Some do it on a monthly basis but others use the average daily balance over the last two billing periods. If you carry a balance this usually means that you've lost any grace period on your new purchases. Unless you pay off your balance for two months in a row, the two-cycle method will include the prior cycle's average balance in calculating your finance costs even though you paid off that cycle's balance in full. You don't face that expense with a single-cycle card.

5. Inactivity Charges - Credit card companies don't make money if you don't use your cards. Not using your card could mean you receive a fee, as much as $15 if you haven't swiped your card in six months, but charges may be incurred for shorter intervals.

6. Late Payment Fees -  The average fee is around $25 but there are others that charge even more.  Bank of America and Providian are now charging $39!

And there's yet another downside to paying late: A higher interest rate. In a 2003 survey, Consumer Action found that just one or two late payments will trigger a higher interest rate.

7. Over-Limit Fees - Exceed your credit limit by even one cent and you'll be hit with over-limit fees of $25 to $39. And don't forget -- charges such as a $39 late fee can then trigger a $39 over-limit fee.

8. Balance Transfer Fees - This is something that simply is just a tease for most: A rock-bottom introductory rate to transfer your balance, but that low rate may come with a transaction fee, 3 to 5 percent, for transferring your balance to their card, which means transferring $1,000 at 4 percent will cost you $40.

9. Payment Allocation - If you're carrying a balance, and you use your credit card for purchases and cash advances, or you're paying off a promotional rate and then add charges beyond the promotional period, your card company will first allocate your payments to the charges that will earn it the most money. In most cases, that means it will apply your payment to the balance that has the lower rate, thereby allowing the balance with the higher rate to accumulate and compound interest.

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.

These 12 tips will assist you in better understanding what is involved when applying for short term fast cash loans, typically referred to as “Payday loans”.

1. Any contract you sign should always be read!  If you can’t understand it, take it with you and get some help.  It is better to delay your application than taking losses in the future because you didn’t understand what you were signing.  The contract will have all the fees, requirements, interest rates, and payment terms.  Some lenders can be vague so make sure you ask questions.

2. There are tons of fast cash loan lenders on the internet.  You will find more available to you this way than if you beat the pavement in your local area.  You can easily and quickly compare companies this way, as well.

3. Payday loans are just as binding as any other type of loan. Money owed on these types of loans will be collected in any way possible just like with secured loans that you commit to.  You will be held to your contract in regards to repayment.  If you are unable to uphold the agreement held between you and the loan company, you should contact them immediately to find out what your options are.  They can generally offer you extensions or roll-overs.

4.  This is a great tip...DO NOT OVER BORROW.  Payday loans are meant for small amounts of money for pressing circumstances.  If you want to borrow lots of money, apply for a credit card as fast cash lenders charge a lot more in interest.

5.  Check your contract and the fine print to determine what the consequences are when you cannot make a payment on time.  You can accrue hundreds of dollars in fees because of late or non-payment, so don’t lose more money that you borrowed!

6.  As mentioned above, research each lender to compare their rates.  You may also do a search for reviews of that company.  Several lenders will offer discounts on their rates that may help you find a good loan.  Pay attention the track record of a company.  You may even be able to find some on the Better Business Bureau website.

7.  Find out from the lender if the loan will affect your credit score.   In some cases, your credit score will have no effect on your approval or denial for the short term fast cash loan.  In other instances, your credit score will be viewed but usually has no basis upon if you are approved for the loan or not.

8.  If you have bad credit, don’t fret.  There are lots of cash advance lenders who offer loans to customers that have bad credit.  This is helpful to people who have had credit issues in the past.

9.  It is recommended that you do business with loan companies located in the United States.  Companies overseas are not regulated by payday loan laws.  They have no obligation to obey them.

10. Research what the laws are regarding payday loans so you are prepared and are not taken advantage of.  Knowing your state’s laws will keep you safe.

11.  Pay your loan back with your next paycheck if possible.  You will save money on interest if you do this rather than extending your payment period out.  Most lenders require that you have a savings or checking account with a bank for a specific period of time.  Once verified, a post dated check is all you need to pay them back.

12.  Be a smart consumer.  Do your research and read articles and books regarding finances.  If you struggle frequently where money is concerned, don’t look to payday advances to help you out all the time.  You literally will pay more by doing things this way.  The best advice would be to consult a debt consolidation company, take money management classes and learn what you can to make smart choices with your money.