Corporate Flyer Blog

Tennessee lawmakers will be discussing proposed changes to the title loan industry in a house committee on Tuesday.  Some of the proposed changes are limiting the administrative fees charged by title lenders with their ultimate goal of capping the interest rates at 36 percent.

Under current state law, title loans are allowed a 30 day repayment term.  If the loan is not paid off in 30 days it will automatically roll into a new loan in which the lenders are allowed by the state to charge a 2 percent interest along with an administrative fee.

Supporters of title lending see this as a small price to pay for the ease and convenience of utilizing a title lender.  These loans provide an alternative for consumers who are are unable to secure financing from a mainstream financial institution.

A payday loan can, and has, saved many consumers from financial emergencies.  What if your car breaks down on the way to work?  You have it towed in and the repair bill plus towing fees total out to be over $ 300!!!  This, by the way, is a conservative figure for car repairs – aaaaargh.  As your stress level escalates you realize that your bank account is depleted and payday isn’t for another week.  Sound familiar?  There is a solution – get a payday loan. 

This industry is often scrutinized, but the fees pale in comparison to multiple NSF charges, missed days at work due to lack of transportation, etc.  The loans are easy to obtain and can often be applied for online by completing a short application.  Be sure to do your homework and find a reputable lender.  Another consideration when choosing a title lender is making sure that you are not applying through a “middle man.”  It is cheaper and more secure to deal directly with the company who will be lending you the emergency cash.

Even if your state does not allow title lending you can still get the cash you need by visiting a bordering state that does not ban these lenders.  For instance, say you live in Florida (where title lending is not available) – you could drive to Georgia or Alabama to obtain the loan!  It is a pretty simple process.  Just locate on online lender, input your area code, and a list of lenders close to you will be generated.  Do not let state laws prevent you from obtaining emergency cash!

Thousands of California residents are being affected by the states debt crisis.  Tax refund checks are being delayed causing anxiety in those who rely on these funds for medical bills, household expenses, etc.  This is especially difficult given the current economic climate that our nation is weathering.

Title loans offer California residents an easy solution for their short term financial needs while waiting for their tax refund check.  Even if you have bad credit you can qualify for a title loan by using the equity in your vehicle.  These loans can be obtained by filling out a short online application.  Once the title lender receives your information, a loan specialist will contact you with further details on how to claim your funds.

According to the USA Today, banks are raising late payment and over the limit fees for credit card consumers.  Credit card companies say that this is necessary to offset higher delinquency rates and charge offs.

The irony is that credit card companies love late payments, as long as its not too late.  Last year they racked up $ 19 billion dollars in over the limit and late payment fees.  That number is expected to be $ 20.5 billion of essentially free money in the next year.

Consumers are having a harder time paying off these high interest cards and the fees continue to mount.  Taking out a payday loan is often times a cheaper alternative to the ever increasing rates and interest accrued on your cards.

Opponents to title loan lending contend that people who use this type of lending to meet their short term financial needs become trapped in a cycle of debt and will ultimately have to surrender their vehicle to the title loan lender.  However industry representatives argue that this is just not the case and that their service offers a realistic option for people to short on cash to cover their bills, and most people pay their loans back on time.

Payday and title stores want to be responsible lenders because they do not want to lend money to people who cannot pay them back.

A typical payday or title loan customer seeks this service because they cannot get the cash they need from a typical banking institution and do not have a friend or family member that is able to lend them the money.  They are often facing impending bounced check fees or incur exorbitant late fees for not paying on time.  In fact, credit card companies are increasing the interest rates on late payers which can cost hundreds of dollars in accrued interest.  These customers often weigh their options and know how much each of these options is going to end up costing.

Industry statistics indicate that about 95% of payday and title loan customers pay their loans off on time.  Sometime this is not in the terms originally set forth by the lender, but lenders do follow best practices and can extend the repayment period with minimal fees being incurred.

Most lenders offer their services online with a quick and easy application process.  There is usually no credit check involved as there is when applying for a bank loan or credit card.  So there is no risk in lowering your credit score by having too many inquiries on your credit file.

Payday loans are becoming increasingly advantageous to consumers looking to satisfy their need for short term cash.  With the availability of credit drying up at an alarming rate, these loans remain a viable solution for those in need.  Another reason that makes the loans so attractive is that they are easy and hassle free to obtain.  Most lenders allow you to apply online and have very fast approval times.  The paperwork required to obtain a payday loan is extremely minimal.  Usually just proof of employment or regular monthly income and best of all, credit is usually not a factor.

Some online loan sites are simply a “middle man” their role is to take your information and distribute it to loads of lenders for your loan requests.  Utilizing this type of service will oftentimes inundate your email inbox for months with advertisement from hundreds of payday lenders.  I have also heard instances where they will relentlessly call your cell or work phone to solicit their services.  To avoid this fiasco try to find a lender whose online application goes straight to their office for funding approval.

Payday loans are a great and inexpensive way to get by until you are paid again.  Especially considering that banking overdraft and late payment fees can be quite expensive compared to the rates that Payday lenders offer.

We have all been in this situation – crossing our fingers hoping that you have enough money in your checking account before the check or online payment for bills clears the account.  The obvious solution is being responsible with your hard earned money and avoiding this dilemma all together, but sometimes this is just not an option.  NSF fees are on the rise and are extremely lucrative for the banks.  Their computer system has also become increasingly savvy at rearranging debits from your account to maximize the amount of NSF fees charged.

For example, you may have $ 15.00 in your checking account, but without thinking about it you use your debit card at the grocery store for $ 19.00.  The register will accept your debit card, but be advised that an overdraft charge of $ 25.00 – $ 39.00 (depending upon your banking institution) will be deducted from your account.  And sometimes it does not even stop there!  Some banks will continue to charge your account $ 2.00 – $ 5.00 per day, until the account has a positive balance.  In addition to monthly maintenance fees.  So, at the end of the day – your $ 19.00 purchase can cost in excess of $ 50.00 in fees.

A payday loan of only $ 100.00 (to be paid back with your next paycheck) would have only cost you $10.00!!!  By taking a few minutes to apply for a payday loan online you could have saved yourself $40.00.  I find this to be the best option for short term cash needs.

Lawmakers last ditch efforts to revive a shelved bill aimed at reigning in payday lenders failed in the House on Tuesday.

Supporters of House Bill 396 argued that payday and title loan companies are akin to legalized loan sharks that take advantage of the impoverished.

Opponents of the bill said payday lenders provide valuable lending services for people who would otherwise not be able to secure a small loan for things like groceries or utility bills.  Some even argue that if unless you are going to require that all banks loan money to people with no assets, you should not take away the one avenue that they have.

Payday and title loan lenders are a viable solution to people with short term financial needs.

No longer do you have to run around town to obtain the cash you need!  Most payday lenders are now offering their products online.  You can access these funds from the privacy and comfort of your home.  These loans are hassle free and do not require lengthy amounts of paperwork for approval.  All you need to do is search for a reputable online lender, fill out a short application then simply wait for a customer service representative to contact you with approval information.  It’s that easy!