• Extra cash in borrowers’ wallets
• Mortgage/rent payments
• Auto repair bills
• Urgent medical expenses such as hospitalization
• Utility bills
• Payment of household bills such as school supplies and groceries
• Transportation expenses
• Vacations or leisure-related expenses
• Avoidance of late fees, overdraft charges, and bounced check fees
• Payment of creditors
• Holiday shopping

The finance charge on a two-week loan of $100 ranges from $15 to $30, which translates into an annual percentage rate (APR) of 390 to 780 percent.  A finance charge refers to the cost of credit in dollars or the amount of interest that a borrower pays to obtain credit.  The APR, which represents the yearly cost of credit expressed in percentage form, enables consumers to compare the cost of different loans or types of credit.  A number of states have passed usury laws, which place a ceiling on the interest rates charged by lenders.  Some also regulate the number of outstanding loans that a borrower can have at a single time, place a cap on the number of loans that a borrower may take out annually, and/or prohibit or restrict the number of rollovers or loan extensions that a lender may grant.  Loan calculators enable consumers to determine the APR, finance charge, and repayment amount.  Prospective borrowers need simply input the finance rate, loan amount, and desired term of the loan.

Unlike credit card companies and banks, payday lenders waive the credit check requirement.  Payday loans are loans for people with bad credit, such as those with charge-offs, foreclosures, or bankruptcies on their credit report.  Individuals with a negative credit history or no credit are not disqualified from receiving a payday advance.  Another advantage of fast cash is that it may be obtained 24/7 from the comfort of one’s home without needing to visit or wait in line at a brick and mortar payday loan store.  The application form, which may be faxed or submitted online, generally takes only minutes to complete.  Borrowers do not need to pledge collateral or obtain a co-signer; their paycheck and job serve as collateral.  Although eligibility criteria vary from one company to the next, the following minimum requirements must be met:

1. Be at least 18 years of age;
2. Be currently employed and hold the same job since at least 90 days
3. Have a minimum monthly income of $1,000
4. Have a savings or checking account with direct deposit

Applicants must also submit personal data such as name, social security number, paycheck stub (sometimes), contact information, and driver’s license.

With faxless payday loans, also known as no fax payday loans, applicants need not fax any documents or submit any paperwork.

Payday lenders approve applications instantly, often in a matter of hours and sometimes in less than an hour.  Generally, the funds are electronically disbursed into the borrower’s checking or savings account in less than one hour or at most within 24 hours.  Online payday loan providers safeguard the integrity, confidentiality, and security of borrowers’ personal information by encrypting the latter via a 128-bit secure socket layer (SSL) server.  Payday advance websites generally contain a privacy policy concerning customers’ sensitive and personal data.

On the borrower’s payday, the lender withdraws the finance charge.  Typically, consumers are offered the following repayment options: 1) Automatic withdrawal, 2) payment in full, 3) loan renewal and payment of fees and interest, or 4) loan rollover and payment of interest and a portion of the principal.  Many lenders offer customers the opportunity to rollover or extend their loan for another two weeks.  Borrowers must pay a fee to renew their payday loan (i.e. $25 on a $100 loan).  A payday advance costs less than a bounced check, an overdraft fee, or a late fee on an outstanding credit card balance.

Bad Credit Personal Loans

Bad credit loans are perfect for you if you have either poor credit or have recently suffered bankruptcy or repossession. Personal loans for bad credit are useful if you need money for a car purchase, home renovations, an upcoming wedding, or another major event which requires short-term funds. The loans generally range from between $700 and $20,000 and do not require collateral to pledge against the loan.

On the plus side to bad credit loans, they offer you an opportunity to improve your credit record by consolidating all debts and paying them off. By making regular on-time payments, this will also help restore your credibility. Although bad credit personal loans can help you rebuild your credit ratings, there are downsides to these loans.

For starters, you need to expect higher interest rates with these bad credit loans than with other loans. Without collateral required for the lender, you are associated as a riskier borrower, which ups the interest. Also, if you have any doubt about your ability to repay the bad credit loan, do not take it. It can make your credit rating worse by not repaying it and make it harder for you to borrow money again in the future.

When looking for a bad credit loan, make sure you compare loan quotes in order to find the best loan rate for your situation. Be sure to bring the proper paperwork and documentations with you when applying for a bad credit loan: asset and liability statements, proof of residence, an identity card, and your credit history. There are two main locations where you can apply for a bad personal credit loan: banks and credit unions.

Bad Credit Loans with Banks

Although banks do not often give loans to people with bad credit, they do provide options. Banks sometimes give credit cards to customers with bad credit since credit cards have a higher interest rate than the interest rates on the bad credit loans. The disadvantage to applying for a loan at the bank is that the loan generally has to be at least $1,000. This can be troublesome if you are looking for a smaller loan.

Bad Credit Loans with Credit Unions

Credit unions offer more options than banks for receiving a bad credit loan in a smaller amount. Many credit unions approve bad credit loans by completing a partial credit check. Although the interest rates for loans from a credit union are lower than those at banks, in order to acquire a bad credit loan, you need to have either a checking or a savings account in that specific credit union’s branch. Another downside to applying for a bad credit loan at a credit union is that they are not commonplace and may be far from your home.

Cash Advances & Payday Loans

Cash advances, also referred to as payday loans, can provide you with an unsecured and short-term cash advance until your payday. These loans occur in small amounts-ranging from $100 and $500-and must be repaid once you receive your paycheck. Cash advances can be useful if you are facing a financial emergency, but should not be used for an everyday loan due to the high interest rate. Cash advances have the highest interest rates out of all bad credit loans, with rates ranging from 300% to nearly 800% APR. This interest rate equates to approximately $15 for each $100 lent.

Before receiving your loan and loan agreement, you must file an application form with a private lender. When filling out the application, you need to include relevant payday information, including the next payday’s date, the amount of cash due, and copies of recent bank statement. In order to qualify for a cash advance loan, you need to have a current job of at least three months with an annual salary of at least $12,000 after taxes, and be a legal citizen of the US.

Even though emergencies may happen while you have bad credit, be sure to weigh the costs of all options before committing to a bad credit loan or cash advance. Understand that these loans have the highest interest rates, and missing payments may result in the borrower being unable to take out another loan.

In their search for the optimal payday lender, consumers should keep the following criteria in mind:

1. Number of years that the company has been in operation - Prospective borrowers should focus their search on cash advance providers that have been doing business for a considerable length of time and have a history of financial stability.

1. Licensed lenders - Consumers should ensure that the fast cash creditor is licensed and not hesitate to inquire about its lending license.

1. Professionally-designed and user-friendly website - Companies specializing in online payday loans should have a marketing website with a design and layout that is coherent and organized and with information that is clear and understandable.

1. No processing fees - Payday lenders should not charge any fees to process the customer’s application.  Furthermore, consumers should steer clear of businesses guaranteeing instant approval upon the former’s submission of answers to only a few questions.

1. Comparison of terms and conditions - Prospective borrowers should carefully review the terms, conditions, procedures, and policies of the cash advance companies under consideration.  They may utilize an online personal loan calculator to compare the annual percentage rate (APR) and finance fees offered by different fast cash firms.  Since interest rates vary from one payday lender to another, consumers can save a lot by shopping around and obtaining quotes.  Since fast cash lenders also differ in the extension and repayment options they offer applicants, consumers should also familiarize themselves with these loan parameters.

1. Available contact information - A good payday lender has a Contact Us page that clearly identifies its contact information, including email address, mailing address, and phone numbers.  This page should also contain a form for inquiring borrowers to communicate any issue or problem involving the application or submit questions regarding the payday loan and the process in general.

1. Frequently Asked Questions (FAQs) page - A reputable online cash advance lender will have a FAQ page that provides answers to commonly-asked questions.

1. Security and Privacy Policy - Since security is primordial for any online business, a professional payday loan business will conspicuously post a Security and Privacy Policy on its website and an SSL certificate of security.  SSL, which stands for Secured Socket Layer, refers to an electronic connection that is secure and that safeguards the information on a customer’s application form when submitted online.  An SSL connection prevents third parties from intercepting any information transmitted by the borrower.  A good cash advance provider will clearly display and explain its privacy policy, as well as terms and conditions.

1. Added convenience and speed - Prospective borrowers should seek out an online fast cash company that offers no fax payday loans, which minimize documentation and expedite the loan process.  With a faxless payday loan, consumers are not required to fax in any papers (such as paycheck stubs) and can simply fill out and submit the short application online from the comfort of their home or office.  Similarly, no teletrack payday loan companies, which do not conduct credit checks and which approve applications irrespective of bad credit, saves applicants time and enables them to obtain the funds much quicker and with a few simple clicks of the mouse.

1. Customer reviews - An educated consumer will consult online customer reviews from former borrowers of the payday loan companies with which he or she is contemplating doing business.

1. Background check with the Better Bureau of Business (BBB) - The BBB keeps records of payday lenders conducting business in the inquiring borrower’s area.  Consumers can verify whether any complaints have been filed with the BBB against a particular payday loan store.

1. Impeccable customer service - What differentiates a mediocre cash advance business from a first-rate, fast cash provider is the quality of the customer service that is provided and the lender’s attentiveness and responsiveness to the client’s queries and concerns.  Prospective borrowers should place a premium on the level of customer service offered by the payday loan store in question.

• Consolidation of debts
• Business start-ups
• Funeral expenses
• Holiday vacations
• Medical expenses
• Cosmetic surgery
• College education
• Home purchase
• Home improvements
• Purchase of appliances
• Auto repair or purchase
• Special events such as weddings
• Credit building

One of the most beneficial uses of a personal loan is for the consolidation of debt from numerous sources such as store cards and credit cards.  By making timely payments of consolidated debt, borrowers may improve their credit rating.  Personal loans are issued from a variety of institutions such as credit card companies, private lenders, and banks.  Consumers may obtain a personal loan by applying online- a process that is simple, expeditious, and convenient since it can be effectuated from one’s home or office and with a few clicks of the mouse.  There are two main types of personal loans: 1) secured personal loans and 2) unsecured personal loans.

1. Secured Personal Loans

These require prospective borrowers to pledge collateral or security such as real estate, a home, a vehicle, or another valuable asset.  Due to the fact that the lender’s risk is mitigated by the collateral’s presence, recipients are offered the maximum loan amount and a low rate of interest.  They also benefit from an extended repayment term and may choose between fixed or adjustable interest rates.  Since creditors have the assurance of security, an applicant’s credit history becomes immaterial.  Therefore, individuals with a bad credit score as a result of default, late payments, county court judgments, or bankruptcy, or other factors may avail themselves of secured personal loans.

2. Unsecured Personal Loans

These do not require borrowers to offer the lender any collateral or security as protection in the event of default.  Two types of unsecured personal loans are payday loans and credit card loans.  Applicants with a good credit rating have a higher chance of procuring an unsecured personal loan.  While interest rates vary from one creditor to the next, they generally depend on the following elements: 1) the repayment period, 2) the borrower’s income, and 3) the authorized loan amount.  Typically, consumers with a high credit score qualify for loans in the range of $100 to $5000.  Individuals with a tarnished credit history, whether due to bankruptcy, arrears, county court judgments, past repossessions, defaults and/or another adverse mark on their credit report, are also eligible for these loans.  However, they will generally pay a higher interest rate and obtain a loan of a lesser amount, typically ranging from $100 to $500.  Poor credit borrowers must usually provide references, a recent bank statement, and proof of employment.

Unsecured personal loans often feature short repayment periods.  Since there is no collateral to verify and appraise, processing is speedy and documentation is minimal.  Unsecured bad credit loans are designed for individuals who are coping with unemployment and are in need of quick cash to cover day-to-day expenses while focusing on job hunting and on restoring their financial equilibrium.

Bad credit personal loans are aimed at consumers with battered credit or no credit and who would not otherwise be eligible for traditional loans.  Since lenders incur a considerable risk in insuring this segment of the population, these loans tend to carry a higher interest rate.  To ensure that applicants will be current in their loan payments, lenders evaluate the former’s financial position and income.  A personal loan for poor credit is typically available in an amount ranging from $5000 to $75,000.  The repayment term, which generally ranges from 3 to 20 years, determines the interest rate.  Bad credit personal loans enable borrowers to start on a clean slate and repair their credit rating.

High risk personal loans, which are also referred to as unsecured, personal, and payday loans, are a boon to consumers with a tainted credit history.  These small, unsecured, temporary loans, which may be utilized for a garden variety of purposes, assist borrowers in paying off outstanding debts and taking care of emergency expenses.  By repaying their bills in a timely manner, borrowers may enhance their credit rating.  High risk personal loans do not require a co-signer or collateral.  Moreover, there are no long applications and forms to complete, and the loan funds are instantly deposited in the borrower’s account.

Quick cash loans, also known as payday advances are short-term personal loans that individuals can avail for financial emergency situations. The maximum amount you can borrow varies with every payday lender, however many financial institutions lend up to $1,000 at a time. Payday cash loans are also typically lent out on a short-term basis, which means they are required to be repaid on the borrower’s next payday. They can be found and obtained by either visiting a payday loan store, or on the Internet.

Benefits of Payday Cash Loans

There are several advantages to opting for emergency cash loans in times of financial difficulty. For starters, approval is not contingent upon the borrower having good credit; in fact, there is no credit check requirement in the payday loan process at all. However, while credit is certainly not an issue, there are some basic minimum requirements that borrowers must satisfy in order to get approved for quick cash advance loans, including:

• Be at least 18 years old
• Have a valid bank account
• Have the ability to provide proof of employment
• Meet the minimum monthly income requirements set by lenders

Another benefit of same day payday loans is having access to the cash you need instantaneously, in most cases just as the name implies, on the very same day. Not only are payday advances quick, but they’re also convenient. Lenders are usually able to deposit the money directly into your checking account.

In addition to the perks mentioned above, the application process involved for payday cash loans is also very simple. It is not necessary to apply in person at a payday loan store, as you can easily find lenders online and apply from the comforts of your own. All you have to do is fill out a simple form with some basic personal information and submit it electronically. Once lenders receive your online application and approve it, you will be able to have access to the funds within mere hours.

What Happens if You Can’t Pay?

As with anything else in life, including payday advances, there are always both advantages and disadvantages involved. One of the major drawbacks of quick cash loans is paying higher interest rates. However, they’re part and parcel of the price you pay for the convenience that these types of loans offer. On a more positive note, as long as you pay back the cash advance loan on time, you won’t have to run the risk of incurring any extra charges.

If for some reason you are unable to repay the loan by the due date, it may be possible to apply for an extension or work out some type of payment plan with the payday lender. However, in order for lenders to work with you by considering alternative repayment options, you have to provide them with prior notice of your inability to pay.

While quick cash loans can be used for a variety of purposes, including financing your child’s school tuition, vacations, or even for your wedding, it’s important to not get carried away, which can easily happen if you’re not careful. If you truly want to reap the benefits that these types of loans offer, while continuing to remain debt free, keep one thing in mind: use payday cash loans for financial emergencies only.