WHY CHOOSE ICASHLOANS ? : When you need cash quickly you want to work with a service that is reliable and experienced in the payday loan industry - iCashLoans is both. We pride ourselves on connecting our customers with the best payday lenders to meet their needs. Why waste time visiting dozens of websites trying to figure out which lender will serve you best? iCashLoans is the only site that you need to visit when you’re looking for a fast, secure payday loan.

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Our services are designed to help you find a reputable payday lender to work with. iCashLoans has a large number of lenders in our network, and we are confident that we can assist you in obtaining the best payday loan to meet your needs. Everyone hits a rough patch financially at some point, and payday loans are a great solution for short-term cash flow problems. You don’t have to worry about how you are going to pay an unexpected bill, or cover an emergency expense, between pay checks - iCashLoans is your source for finding payday loans. Using iCashLoans is 100% free to you - we do not charge any fees for our services. When you use iCashLoans you will save time and money. All you have to do is provide us with basic information and we will instantly search our network of lenders to find you the loan that meets your needs. At iCashLoans we pride ourselves on working with lenders that are fair and honest in their lending practices. Our main goal is to provide you with a great experience when searching for a payday lender. All lenders in our network are required by law to follow all of the rules and regulations related to payday lending. Don’t drive around town to visit payday loan shops, and forget about looking at website after website trying to find a loan with fair terms. iCashLoans is the only place you need to go to find a payday loan. We will search our vast netowrk of lenders instantaneously to find you the loan that you are looking for.

Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

Sunday, September 29, 2013

Introduction To The Basics Of Payday Loan

Introduction To The Basics Of Payday Loan
You might have heard of a payday loan. Are you wondering what it is? Well, this article will give you much needed information on everything you need to know about Payday Loan.

Payday Loan is also called paycheck advance in some areas. As you can guess from the words, payday and loan, it is a short-term loan that is intended to cover the employees expenses until the next payday comes. These are what some may call emergency loans. The amount of cash that you will borrow will be removed from your next salary. There are times when people call these loans as cash advances. Though if we use this term then it can also be related to the credit card industry. There are various legislation regarding payday loans. It contrasts from one country to another and in the case of the United States of America, from one state to another.

There are some states and countries that strictly impose usury limits. They limit what is called the nominal annual percentage rate (APR) which is the charge of the lender to the borrower. This will be added to the debt of the borrower. We can also see the statistics side of the situation. The effective annual rate (EAR) takes compounding into account unlike the nominal annual percentage. For example, when a borrower decides to loan an amount of $200 on a 2 week payday loan with a 20 percent charge there is a significant difference between the computation of APR and EAR. When we compute it using the APR then we will have a computation of 26 x 20 percent = 520 percent. However, when we compute it using the EAR then we will have a computation of (1.226-1) x 100 percent= 11, 447 percent. As we can see, there is quite a difference between the computations of the two rates so one has to be careful when reporting whether each rate is quoted so that the computations will be reliable and unquestionable. It will also be helpful to know these computations when you are the borrower so that you will know if you are paying the right amount of money.

Some borrowers visit a payday lending store which can be found in many areas. They will secure small cash loans which are usually below a thousand dollars. They will give the full payment once they get their next paycheck. Hence, this is the reason why they call it paycheck loans. The usual time cycle of this kind of arrangement is two weeks or three weeks. There are some lending stores in the United States which charges with a minimum of 15 percent and a maximum charge of 30 percent. This usually translates to an APR of a minimum of 390 percent and maximum of 790 percent. This is the case for a term of two weeks. Usually, to ensure that the money will come back to the lender, they will require the borrower to write a postdate check addressed to the lender with all the details. This includes the full payment and the fees or charges. We also have a maturity date which is the deadline of the full payment of the loan. On this date, it is expected that the borrower will return to the store to repay the loan in person. However, if the case arises that the borrower does not return then the lender can deposit the check instead.

Here is where it gets complicated. When the check bounces due to shortage of funds then the borrower may incur additional charges because of failure to pay on the agreed date. There are times when the borrower could ask for an extension for the payment of the loan. There are some states in the United States which requires the lender to extend the payment if needed or requested by the borrower.

The lender is not afraid that the borrower cannot pay them on time. Before the payday loan is granted, the borrower needs to prove that he or she has a steady income. Other than that, the borrower is also requested at times to present bank statements as further proof that they have stable income and can pay the amount being borrowed and the fees included. There are some private companies and franchise that have their own set of rules and regulations.

The key when making paycheck loans is the right information regarding the lending store you will be borrowing from and you have to make sure that you really need the money. If you do not really need the money then you can just wait for your next paycheck.

Professor George Mendle is an Senior Associate Professor of Economics and International Business at the Shaw School of Business, Raleigh, NC.

His fields of research include: online payday loans, lending and finance in the payday loan industry and the relation between general loans and paycheck loans in the USA.


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