Want an instant loan from a company that won't even bother with a credit check? A payday loan could help for now, but it will be very expensive, especially if you renew it several times.
Payday lenders have you write a check for the loan plus their fee. The loan usually lasts up to 14 days. Then you either repay it with cash or let the lender cash your check.
The fee is usually $15 or $20 per $100 borrowed. The fee is $30 if you borrow online. Annual interest rates can be to up to 500 percent.
If you are short on payday and you renew the loan, you multiply the interest. Letting a $300 loan ride for a year can cost $2,340 in interest, and you would still owe the $300.
Lender personnel often encourage people to borrow more than they need because they want to earn bonuses. There are other ways to get cash, such as borrowing from relatives. If that isn't an option, many credit unions have short-term loans with lower interest rates and convenient payment plans.
In the 12 states that don't allow payday loans, consumer finance companies offer short-term loans, as do many finance companies in other states.
A credit union is the best choice according to the Center For Responsible Lending. The interest rate is more favorable, and arrangements can be made to deduct payments over time from your savings or checking account.
A recent federal law caps interest on payday loans to military families at 36 percent.
Blessings to Your Real Estate Investment Riches,
Milton B. Yates
www.miltonyates.com
No comments:
Post a Comment