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What are the benefits of payday loans?

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Emergencies are part and parcel of life, and payday loans are one way to counter financial hardships.

A payday loan is primarily a short-term loan that is guaranteed for a certain period, generally about two weeks.

Payday loans are addressed in different terms, such as emergency loans, short-term loans, paycheck advance, and bad credit loans, among many others.

Payday loans save you from penalties incurred by late payment since it is payable with the next paycheck. This means you are only in debt for a few weeks. Below are various other benefits of payday loans:

Convenience

Imagine getting your loan approved all from the comfort of your home or office? With payday loans, the processes and interactions involved are all carried out online.

You don’t have to book an appointment with your loan officer or visit and call the lender to approve the loan. You simply send your application form online.

Further, the forms are easy to fill, and the paperwork is minimal. You might not be required to fax the documents to the lender, though some lenders do require proof of income.

Most traditional loans dictate how you should spend the money that is lent. For example, you can only use a car loan to buy a car or a house mortgage to buy a home or property. All these conditions have been countered by the online loan industry. With a payday loan, you can spend the cash on anything from paying your rent to repairing your car.

Fast Cash

Payday loan forms are usually straightforward and only require necessary information. This means that the application process is seamless and simple. If you provide the required details fast, the loan gets approved quickly, and you might have the cash within an hour.

Other conventional loans have lengthy procedures that take a lot of time to process. They may take several days, and sometimes even weeks, to process. This means they might not be of much help when you have an emergency. You are also not assured that your loan will be approved. When you apply for a payday loan, you get the feedback within one hour. You can seek help elsewhere in case your application is rejected.

No Credit Check

Many people avoid applying for loans because they might get rejected due to poor credit scores. Payday loans, however, offer a viable alternative for such people as they don’t require a credit history. They also keep you safe from credit inquiry.

Moreover, this is a great way to protect your credit rating. When you repay loans in installments, anything can happen in between. This means you might be unable to refund the full amount, which then hurts your credit score. However, with a payday loan, you have a short repayment period. This is an advantage because it allows you to protect your credit rating.

Minimal Requirements

Conventional loans require you to put up collateral, such as your house or car. Besides, they need you to demonstrate that you have the ability to repay the loan.

Payday loans usually have fewer requirements. The basic requirements for a payday loan are proof of a steady income, a credit check, and a photo ID. You might also need validation to show permanent residency in the said state.

Primarily, this is what you need to qualify for a payday loan:

  • Be 18 years or older
  • Have a government ID or Social Security Number
  • Have a regular source of income or job
  • An active bank account

These requirements make payday loans more desirable. However, keep in mind that you are essentially writing the lender a check for the amount you are borrowing and the interest when you take a payday loan. This means that you permit them to withdraw that amount on the due date, as this amount is automatically withdrawn from your paycheck.

Higher Loan Amounts

For first time borrowers, many lenders limit the amount that they will lend. You are only authorized to borrow an amount that is within your salary and the lender’s range.

Once you have repaid the first payday loan in full, your lender can increase the allowance for future applications. For instance, if you get a payday loan of $600 and pay within the due date for the first time, your loan limit can then be increased to $1200, depending on your salary and the lending policy.

State laws determine the minimum and maximum amounts that lenders can give as payday loans. You are informed of the amount you can get during the application process. Remember that paying your loan on time enables you to build a good relationship with your lender. This means that you have access to a faster solution during emergencies.

Final Word

A payday loan is a safe way to cater for financial emergencies. You don’t need collateral, and you can also access the cash within hours. You can apply online without having to visit the lender’s offices or making countless calls to the loan officer. Moreover, payday loans have minimal requirements. Remember that you give the lender the ability to withdraw from your next paycheck when you obtain a payday loan.



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Evicted California renters at greater risk of getting COVID-19

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After 70 years in Monterey County, 87-year-old Mary Martinez moved in the middle of a pandemic, evicted from her modest one-bedroom, second-floor apartment at 1118 Parkside St. in north Salinas.

According to her former landlord, Martinez was evicted because she allowed a “violent man” to live with her, violating the conditions of her lease. Martinez said the man is her epileptic nephew.

Advocates say that while evictions like Martinez’s are rarer during the pandemic, landlords are feeling the financial squeeze. Some have sold rental properties to make up for lack of income. That can leave renters out in the cold when their new landlord raises the rent by hundreds of dollars or requires all renters move out before they take over the building.

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New program to help Black-owned online businesses | Technology

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ATLANTA _ Many Black entrepreneurs struggle to get bank loans and professional help to launch new businesses. A new program aims to remove those stumbling blocks.

An Atlanta nonprofit and another business have committed $150 million to the 1 Million Black Businesses effort, which will make loans and provide financial and business advice to Black-owned startups and established small businesses. Atlanta-based nonprofit Operation Hope, which helps consumers improve credit scores, is kicking in $20 million, and Shopify, the online e-commerce is adding another $130 million for the loans and website-hosting services.

Other services firms providing expertise or help include Aprio, an Atlanta-based accounting firm, and First Horizon Bank.

It’s a package of products that many Black entrepreneurs couldn’t get through a bank or credit union, said John Hope Bryant, CEO of Operation Hope.

“A bank won’t lend you money unless you can prove that you don’t need it,” Bryant said. “That’s especially true with minority-owned small businesses.”

Small businesses with Black owners were half as likely to obtain business loans as whites, according to a Federal Reserve survey published earlier this year.

The initiative is the latest effort to help Black consumers and businesses enter the financial mainstream. Earlier this month, a group that includes rapper Killer Mike opened a digital bank aimed at Black and Latino consumers.

Banks and credit unions have tried for years to help Black consumers open checking and savings accounts. The efforts helped, as the number of U.S. households without bank accounts fell to 5.4% in 2019 from 6.5% in 2017, the Federal Deposit Insurance Corp. said Monday.

Consumers who own checking and savings accounts typically have access loans with better rates and a wider variety of financial services.

The federal government’s $660 billion loan initiative for businesses hit by COVID-19, the Paycheck Protection Program, also helped few Black-owned businesses, Bryant said. PPP loans were based on a company’s number of employees and its rent obligations. many Black-owned small businesses typically didn’t have enough workers to qualify and are based out of the owner’s residence.

Bryant said a bad credit history may not prevent applicants from receiving a loan.

He hopes more companies will contribute services such as insurance advice or software typically available only to well-established businesses.

Bryant noted that 1MBB is not a charitable organization, as participating companies like Shopify will likely get a pipeline of new business customers through the program.

“This is not pure philanthropy,” he said. “Shopify believes that Black-owned businesses are good businesses if they’re properly supported.”

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This Week’s Top Car Deals & Analysis – October 30, 2020

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The final days of October offer a chance to take advantage of outstanding model year-end deals. Most offers end November 2, which means there isn’t much time left to enjoy this month’s best lease deals and deepest new car discounts. We even found incentives that can help those with bad credit buy a new or used car.

2021 car deals. Interestingly, 2021 new car incentives are showing some surprises. For example, Audi is already offering up to $12,000 in savings when leasing the 2021 e-tron all-electric crossover. We even learned that the new Genesis GV80 SUV will debut with a $589/month lease deal plus special financing rates.

Believe it or not, the 2021 Hyundai Veloster N could prove to be a great value despite a nearly $4,700 price increase compared to the previous year. That’s because our analysis finds that better incentives can make it just $10/month more expensive to lease than the 2020 model. Talk about getting more for your money.

Why are small cars bad to lease? Even though smaller cars typically come with lower price tags, that isn’t always the case when leasing. A mix of lower discounts, worse residual values, and smaller discounts can actually make a Nissan Altima cheaper than a Versa despite having an almost $10,000 difference in MSRP.

Shorter-mileage leases. More brands are offering shorter mileage allowances on car leases. Although this is typically used to offer consumers more flexibility, we’ve found cases in which you can end up getting less for your money. If you don’t read all the fine print, this could make comparison-shopping difficult.

Bad credit car deals. If you have subprime credit, you may find it harder to get financed. However, some manufacturers are offering special incentives to help make cars & trucks more affordable. For example, Chevy is offering $2,000 in down payment assistance plus 9.9% APR for 72 months on the 2020 Trax.

$0 down leases. If you’re adamant about now putting down any money on a lease, you’ll love Sign & Drive leases. In addition to requiring no money down, $0 down lease deals can cover your first month’s payment. Even hot sellers like the Honda CR-V Hybrid offer $0 down and as little as $330/month on a lease.

The high cost of safety? Even though most major automakers are offering more safety features than ever before, our analysis finds that the highest IIHS safety ratings still require costly options in 2020. That’s starting to change, but the cost of buying a car with the most bragging rights is still very high.

Disaster relief. Those affected by some of this year’s natural disasters should be aware that automakers are offering assistance. California wildfire assistance programs like Ford Employee Pricing can save thousands when replacing a car. Similarly, a 2020 hurricane relief program from GM offers $1,000 in savings.

Spooky loan situations. There are some scary scenarios you can avoid when getting a car loan. However, boosting your credit score is possible with some determination because negative items on your credit report fall off after 7 years. Our network of dealers is specially equipped to help those with bad credit.

Upcoming vehicles. Genesis finally revealed the new GV70, a small luxury crossover based on the highly-rated G70 sedan. Whether it’s a redesigned car, truck, or SUV, odds are you’ll find it on our Previews page. That said, as we reported last week, discounts ahead of a redesign can result in substantial savings.

This Month’s Cheapest Lease Deals »



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