Hond Financial

Posts Tagged ‘fast loan’

A quick search on Google will give you a long list of companies that offer fast cash loans, but how do you choose the good from the bad and what’s a fair deal when you need fast money?

This insight into the industry will help you get quick money without falling into the hands of a dodgy quick cash loan provider. Because let’s face it, the fast loan industry has had a bad reputation for a long time and it’s only in recent years that it’s been getting better. So what has changed?

The biggest difference is probably that you now can get fast payday loans online. This means you don’t have to go to the dodgy pawn shops for quick cash and it also means that the payday loan companies have to display their practices publicly, making it easier for the government to control the industry.

Government control is actually the next thing to point out. Since July 2008, when the Australian government introduced an interest rate capping legislation, many fast cash loan companies have had to shut down, leaving only the well established and trustworthy quick cash providers in business. Claiming that all the remaining easy loan companies are fair and trustworthy is probably a bit of an exaggeration, but it’s definitely a lot better than it was half a year ago.

So how do you know the trustworthy fast cash lenders from the untrustworthy? A good place to start is by looking at their website. Does it look professional, do they have a security icon on their application form, do they have live customer support and is it easy to understand their application, loan and repayment process? If you have any doubts about the cost or repayment details, give them a call or write them an email. Don’t take a fast loan from a company that doesn’t have a transparent loan policy.

The next thing is really basic, but never the less worth mentioning; Stay away from websites that come up with error messages or stall halfway through the application process, if it looks unprofessional it most likely is. With things like these it’s important to trust your natural instincts.

So what is a fair price to pay for fast cash? First of all, don’t make the mistake of comparing a long-term personal loan with a fast cash loan. It’s not the same product and it’s not the same price. That’s like comparing the price of a taxi with a bus ride. Quick loans are repaid with your next pay check and long-term loans run for years. Having said that; the price for fast cash loans is actually not that much higher than long-term loans.

Payday loans have no setup fee and there’s less opportunity for penalty fees as the loan runs for a shorter period. Most fast cash lenders charge a flat fee of around 25% per every $100 borrowed and good lenders don’t let you roll over. That means you can’t take a new loan to pay off the old one, making sure you don’t fall into a debt spiral.

Compare this to long term loans with an interest rate of 15% pa. plus monthly administration fees of $5 and a $175 establishment fee. On top of that, if you want to pay your loan of early, there’s normally an early repayment fee of around $300.

I hope this has given you an idea of what a good fast cash deal is and how to pick a good and trustworthy payday loan company.

If you desperately need fast money within a couple of hours, your best bet is to use an online quick payday loans provider. Some of these payday lenders offer direct cash transfer into your account only 60 minutes after you’ve started your application. This is pretty impressive considering that they’ve never met you and don’t have any idea about your financial abilities. So how do they check if you’re eligible so quickly?

Of course, the process differs from lender to lender but there are some basic steps that you can expect most lenders take in order to predict your money management abilities.

First of all, most easy loans providers do a quick credit history check. This gives them information about your ability to pay your bills on time and tells them how good you’ve been at repaying past loans.  Payday lenders normally don’t care about small mishaps like telephone and electricity bills. But if you have a really bad credit history where you’ve been unable to repay a loan or something like that, chances are pretty big that most lenders will turn you down.

Next step determines how quickly you can get your money. A fast cash loans provider will not require any paper documentation and therefore saves time by bypassing time consuming fax and paper gathering exercises.

Instead fast loan providers confirm your details by contacting your payroll officer. The normal procedure is that you notify your payroll officer that the lender will be calling and then they can confirm your details in only a couple of minutes. Your payroll will verify information like your address, your pay cycle and salary.

Once your details have been verified, the lender is in a pretty good position to make a qualified decision whether to approve or decline your application. Of course there’s still a risk for the fast cash lender as the approval process is a lot shorter and less detailed, than what banks and credit institutions base their decisions on. This explains the higher rates that fast cash providers charge.

With all details verified the quick cash loan provider can now transfer the money into your account. During business hours your easy cash can be transferred immediately and this is why you can have quick cash in less than an hour. Outside business hours you have to wait till the banks open again or with some payday lenders; if you are a returning payday loan client they provide you with a debit card allowing them to make immediate transfers any day of the week even at 2 am on Sunday morning.

Now you know what happens behind the scenes of an online payday lender and as you can see the process is simple. The lenders try to minimize their risk without spending too much of your valuable time.