Payday Mayday! The Hidden Danger Of Payday Loans

Paydays are the most eagerly looked forward to days in the
entire month. It's the day our coffers fill up and a
general sense of wellbeing pervades the atmosphere. The
long awaited personal gift can be bought, dinner at the
fancy restaurant is a possibility and some wise folks even
add up to their savings faithfully at the end of that day.

There are however quite many people for whom the joy of the
payday lasts no more than a few seconds. These would
generally be those who have payday loans to repay. Even
before they can feel the money, it's gone!

What is a payday loan and why exactly is it so monstrous? A
payday loan is a loan of small amounts taken with an
acknowledgement to pay back the same when the next earliest
paycheck is received. The loans are usually for small
amounts not more than $1000. These loans are easy to
obtain, as the lenders do not require a credit check or
collateral.

Such loans are also seen as emergency money that may be
required by anyone at any time and such that can't be
covered by existing funds or due to inaccessibility of the
same.

For example, a breakdown of the heating system in winter
requires immediate attention. If you do not have the
immediate funds you take a payday loan to have the same
rectified.

There are however certain problems related to such loans
that many overlook.

One of the most important problem is the high rate of
interest that is charged on such loans. It comes across as
grossly unfair when you compare the rates with those of the
other loans and discover that the annual percentage rate
(APR) of a normal loan would be 7% while that of a payday
loan averages 400 % and even higher.

Then there are also charges applicable for the service. For
example, on a loan of $100 you may have to pay $20 thereby
bringing the total payable on payday to $120.

Moreover if you fail to settle the amount on payday you can
roll over the same but for which you will be charged the
applicable rate of interest. You may also be charged fees
for your inability to settle the same on the due date.

As these loans are usually taken for short periods, about
14 days approximately this means that any rollovers claim
increasing rates of interest. The borrower then gets into a
never-ending credit cycle that is very hard to break.

If a payday loan is taken from unlicensed or unregulated
lenders it only makes the matter worse. Moreover if you
have not received the terms and conditions of the loan in
writing prior to commencement, then it becomes even more
difficult to assimilate the total charges due. This can
only cause more confusion and problems for the borrower.

At the end of the day you realize that these payday loans,
so alluringly called cash loans are nothing but monsters
that can never be satisfied.
Copyright (c) 2006 Ranci Endo (UK) Investments

Visit Payday
Loans information Website



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Francis Mwendo is an Internet consultant, publisher and
marketer focusing on Debt/Loans items. To FIND cutting-edge
products on Debt Consolidation Services, primarily, Payday
Loans, and Student Loans Consolidation, VISIT THIS SITE: --
http://www.loans-2day.com

No Credit? Here Are Easy Ways You Can Build Credit

Are you someone who has not established credit yet? Are you
being denied the same access to credit cards, loans and
other credit ways simply because your credit score is too
low from not having enough credit or no credit  at all.
Don't fret, because help is on the way!

If you are planning on getting a personal loan, owning a
car, having a home of your own, working in a bank or
finally acquiring the furniture you've been longing for a
long time then establishing a credit is the answer.

Here are a few ways you can start building up your credit
report and get on the road to good credit!

- Start to apply for a guaranteed approval credit card that
reports to the credit bureaus. Take your time and always
read the fine print in order for you to find the best deal
for yourself.  These cards are similar to debit cards but
they have the Visa or Mastercard logo on them and they
report to the credit bureaus.

- Another option might be to check if the lending
institution of your choice has a secured credit card being
offered. The interest may be higher but you may be able to
upgrade  to an unsecured card within 12 months if you
maintain your payments on time.

- Another type of credit card with easy approval
requirements is the merchandise credit cards and department
store credit cards.  These are an excellent source to start
to establish a line of credit. Make sure it's a store where
you can purchase a lot of your shopping needs. This way,
you don't need to apply for a multiple cards at once which
can be seen as a negative on your credit report.  One word
of caution.  Department store credit cards tend to have
high interest rates, many of their interest rates start at
15%.  So keep an eye on your balance and try to pay as much
as you can each month.  NEVER make just the minimum
payment, especially on a department store credit card.

- Don't forget to fill up any application for a loan or
credit card completely. If something doesn't apply put N/A
on that line. Include your checking and savings accounts
and any accounts you pay for on a monthly basis even if
they do not appear on your credit report. If they do not
appear on your credit report, please make sure you include
a way for your prospective lender to contact them for a
trade reference.

If you are thinking about applying for a car loan, it's
good to do research on the dealership or car lot where you
want to make the purchase. Most dealers will provide a
source of financing. Some may carry their own loan and
payment plans. Be on the lookout though and read contract
carefully if you don't want to get stuck with an interest
rate that is through the roof. This venture is where a good
cosigner may come into play.

Use these tips to help jumpstart your credit history and
get approved for the credit that you deserve!
Copyright (c) 2006 Liz Roberts

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Liz Roberts is consultant with NewHorizon Finance & has
been providing consumers & business owners with financing
since 1989. For a list of the credit cards mentioned on
this page please visit
http://www.newhorizon.org/Info/creditbuilders.htm if you
are just seeking bad credit unsecured credit cards visit
this page http://www.newhorizon.org/I

Online Credit Card Offers: So Many Choices!

Most people are hitting the internet to find the best
credit card offers they can. It can be a little bewildering
after you take a dive into the sea of incentives; there are
offers everywhere. Even if you have bad credit, it seems
that there is an offer for every conceivable incentive,
financial goal, or personal association. Credit providers
have really done their research and sliced and diced the
market into specific, targeted niches. So, make sure to
compare offers to find the best credit card for you.

Popular Credit Card Offers

A quick survey of credit card vendors shows there are some
common categories for card offers. We'll have a quick look
at the usual suspects:

Cash Back Cards – Cash back cards are becoming more and
more common. Every major vendor offers them, and you can
earn as much as 5% back on specific purchases. Many cards
focus on particular types of spending habits (gas,
entertainment, everyday purchases, etc). Have an idea of
what your money is most frequently going toward to maximize
your return on these great cards.

Airline Miles Cards – Ah, yes, the ubiquitous frequent
flyer cards. These cards were all the rage in the 1990's,
and they are still quite popular today. Frequent flyer
cards operate much like cash back card offers, except your
rewards are obviously tallied in rewards miles. Be sure to
read the fine print to uncover flight restrictions and
bonus plans. Airline cards more typically have annual fees,
but for heavy users these plans more than pay for
themselves.

Balance Transfer/Low APR Cards – This is the way to go for
the fiscally minded among us. If you tend to carry a
balance on your card, then getting into a nice balance
transfer or low APR card can drastically cut your monthly
payments. The vast majority of balance transfer cards give
you a 0% APR grace period, and a typically low APR after
that. This should give you a nice chance to pay down your
debt without paying more interest than necessary.

Bad Credit Credit Cards – These cards, when used wisely,
can be a great tool for improving your credit score. Now,
naturally, bad credit credit cards do not typically come
with many bells and whistles, but there are still some
great options out there. Check out Orchard Bank's  Platinum
or Gold cards. The other option to consider is a Secured
Card. A secured card requires you to establish a savings
account for collateral, and that you pay your balance in
full each month. If you do that for a while you can work
your way into something more traditional.

Instant Approval Offers – The name explains it all. Instant
approval cards offer a quick and easy opportunity to get
you started. You can apply online and usually receive a
credit decision within seconds of filling out an online
credit card application. There are many banks that offer
instant approval.

We have touched on the four most common categories of
credit cards. There are, of course, even more. Whatever
your fancy is, there is likely something for you. Your best
option is to take your time and shop around for the card
just right for you.


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Please click the following link to apply for a credit card
http://www.credit-card-surplus.com .  Ed Vegliante runs
http://www.credit-card-surplus.com , a credit card
directory enabling the consumer to compare and apply for
credit cards.