Will a Payday Loan Hurt My Credit?

Answer: It depends. Cash loans will hurt your credit if you do not repay them or neglect to make payments on time. In most cases, your account will go to collections if it is not repaid in full by the pre-determined due date. And, like all accounts that are sent to collections, it will have a negative impact on your credit.

However, if you repay a cash loan in full and on time- it will have no effect on your credit history. It’s important to understand that payday loans are very high-interest loans and should be used as a last resort. Be sure to shop around and research all your options before making any decisions. For instance, a credit union or your personal bank may be able to offer you a small loan with a better interest rate and longer loan term.

Saving Money Made Easy

Nowadays, it seems impossible to setup an emergency savings account. With the current economy, most Americans are struggling to pay their bills each month- let alone put money away. But, any financial expert will tell you, you simply cannot afford not to put money into savings. All it takes is one car repair or medical bill to put your family’s finances in jeopardy. Avoid costly loans for bad credit and trick yourself into saving money. Here’s how:

Setup an automatic transfer from your checking account into a separate savings account. Be sure to set it up so that the transfer is done on the same day that your paycheck is directly deposited into your account. That way, you won’t even see the transferred amount hit your checking account. And, if you don’t know it’s there, you’re much less likely to spend it.

More information on cash loans for bad credit

Cash Loans For Students

With the current state of the economy, unemployment rates continue to be high- especially for the 18 to 24 age group. That being said, college students are struggling to meet their bills more than ever. Between the rising cost of tuition and meeting monthly bills, students are forced to adhere to a strict budget. But, when you’re just scraping by, even the slightest hiccup can throw your finances into a whirl. What do you do when your landlord is knocking at your door and you don’t get paid until next week?

First things first: ask your parents for a short term loan. Explain that you don’t get paid until next week and that rent is due today. Sometimes, or rather the first few times, parents will most likely react with understanding. However, after the first few times, they’re probably going to blame you for mismanaging your finances. If that’s the case- you may need to seek out loans for bad credit. These are typically designed for individuals with little or no credit history. Be sure to repay the loan on time. Any late payment could potentially have lasting effects on your credit report.

Read more about The Subprime Crisis of Student Debt

The Credit Repair Organizations Act (CROA) outlines the rules and regulations for credit repair organizations.

Although, it’s commonly believed that credit repair organizations are illegal- they are perfectly legal in every state EXCEPT Georgia. In the state of Georgia, operating a credit repair organization is classified as a misdemeanor.

The Act details several rules; for example, a credit repair organization cannot bill you in advance for services that have not yet been rendered. They also have to disclose to you that you can challenge information on your personal credit reports for free.

The Federal Trade Commission enforces the CROA. In 2008, the FTC closed down 34 credit repair organizations for violations of CROA in as part of a project referred to as “Project Clean Sweep.”

Pros and Cons of PrePaid Debit Cards

Do you have bad credit or no credit? Relax; you can rebuild your credit with a prepaid card.

Prepaid cards are not credit cards; you cannot spend more than the balance you have deposited and you will not be charged interest for your spending. The prepaid account will not be reported to the credit bureaus the same as a credit card.

Pros:

• Easy to get approved with no credit necessary

• The same fraud security as a regular credit card
  Easy to use for online or phone purchases

• Can withdraw cash from ATM machines
• Less expensive than check cashing services

Cons:

• Costly fees for opening and maintaining the account
• Fees for loading money on the account or using the card for purchases
• Although some report to credit bureaus, not all do
• Does not help improve your credit the same way a credit card or secured card would
• Much more expensive than opening a checking account and using an ATM card

Fees and charges can vary significantly between different prepaid credit card offers. Be sure to read the fee schedule for the prepaid credit card before you apply.

Extra Ways to Get Cash

Nowadays, who doesn’t need extra ways to get cash?  Even if you’re one of the lucky Americans that have a great paying job- it seems there’s no guarantee anymore. In a recession, it’s always a good idea to put away extra money whenever you can.  Here are a few ways to get cash in addition to your day job:

1. Have a garage sale. Go through your old junk and get rid of anything you haven’t used in the last year. Odds are, if you haven’t used it in the last year- you probably won’t use it in the year to come. So, why have it hanging around when you could pocket the cash?

2. Checkout local job boards or websites like Craigslist for odd jobs. Sometimes people are willing to pay pretty decent money for quick and easy tasks- like moving furniture.

3. Consider taking on a part-time job on the weekends. You may be surprised at how many companies just need a little help for a few hours on the weekend.

Although these may seem trivial- the money will add up. And, if a rainy day should arise- you’ll be ready.

Credit Card or Cash Advance- Which is better?

With bills piled high, most Americans find themselves scrambling at the end of each month trying to figure out how to pay them. And, with an unexpected car repair or medical bill, it can be outright overwhelming. In a tight situation, which is better: a credit card? Or, cash advance?

Generally, a credit card is a better way to go. The interest fees on a credit card are going to be lower than a cash advance. Even with “high-interest credit cards”, the rates will likely be lower than those of a cash advance. A personal loan will likely have interest rates upwards of 300%.

When you can, it’s a good idea to setup a savings account and put a little money away each month. That way, when unexpected bills arise, you’ll be prepared with money in the bank.

Helping Students Avoid Personal Loans

Do you have a student in high school or college? With school almost done for summer break, chances are they’ve asked you for money. Whether they need the extra cash for summer camp, the latest gadget, or that road trip they’ve been talking about for the past six months- they’ve probably hit up the bank of mom and dad on numerous occasions. If you’re like me, you’ve had to put your foot down this summer. The economy terrible, your budget as tight as ever, and you simply cannot afford to fund their summer excursions. You’re not alone. But what do you do?

No parent wants to see a frown across their kids’ face, nor do they have millions of dollars lying around. And, no parent wants to see their children rot on the couch for weeks on end either.

Solution: encourage him or her to get a summer job! Warn them about the dangers of opening up credit cards or taking out a cash advance. They’re much better off checking local job boards for odd jobs around town. That way, they get out of the house and they’re funding their own activities!

Cash Advance Tricks and Traps and How To Avoid Them!

Using a Personal Loan for a Down Payment On a Car

In a pinch and need a new car? Many times, we can afford the monthly payment but can’t come up with enough cash for the down payment. Nowadays, most people don’t have $1,000 to spare for a down payment.

You need a car to get to and from work- what are your options? Is a personal loan a good idea?

Short answer: Probably not. And, this is why:

A personal loan is intended to be used as a last resort. If you’re already strapped for cash, chances are that you won’t be able to make the loan payments. If you can, try asking family and close friends for a short-term loan. Sometimes, families are willing to pitch in and help you out in a tough time.

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More information on how to get a cash advance.

Personal Loan Mistakes

Personal loans are intended to be used as a last resort in a financial emergency. Unfortunately, in America, we have a hard time separating needs from wants. Here are 3 common mistakes consumers make:

1. Using a personal loan on gifts for yourself or others. Admittedly, there are a lot of social pressures to buy expensive gifts for friends and loved ones. Jeopardizing your credit isn’t worth the 10 minutes of fun your nephew will have playing with that several hundred dollar robot.

2. Taking out a payday advance if you cannot repay it by your next payday. Too many people take out a personal loan without thinking about how they’re going to repay it. Consequently, this loan could end up costing you twice as much as the original loan amount. You’re better off asking for a loan from a close friend or family member.

3. If you have good credit. A big mistake people make is taking out a payday loan with good credit! If you have good credit, it’s MUCH better to take out a small loan from your personal bank or local credit union.

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