Loans & Credit Blog

Need Quick Cash? Alternatives to Payday Loans

November 9, 2009

According to the Center for Responsible Lending, those who use Payday Loans typically receive eight to 13 payday loans each year. Often the loans they are receiving are loan flips where the borrower is getting money to pay a fee and is not receiving any new money. To avoid getting caught in a tough position without being able to pay back your payday loan, consider one of these alternatives to payday loans.

Try Another Lending Institution: There are other easy lending options that don’t carry as high of interest rates as payday loan businesses. If you need less than $2,000 in a hurry, check out the small loan option from Regional Finance. It may be just enough quick cash to fit your needs.

Ask Your Creditor for an Extension: Often people turn to payday loans when they think they have no other option. Be honest and open about your situation with your creditor and ask for an extension. That extra time may be all you need to get the money to pay your debt without getting a payday loan.

Use Your Emergency Fund: Depending on what you need you quick cash for, it may qualify as an emergency. In that case dip into your emergency fund for the money you need, and make sure you replace it as quickly as possible in case another issue should come up.

Get a Payday Advance: Depending on where you work, you may feel comfortable enough asking your employer for a payday advance. You’ll get your paycheck a little early and you won’t have to worry about paying large interest fees like you would if you were obtaining a payday loan.

Turn a Gift Card into Cash: Have a gift card in your wallet? You can turn that into cash quickly with SwapaGift.com. They’ve even got certified partner locations around the country where you can take your gift card and leave with cash.

Pawn Something: Pawn shops can be a good resource for getting quick cash. Take unused electronics, DVDs, or jewelry into your local pawn shop and they’ll give you cash for those items.

Credit Card Cash Advance: You may be able to get a cash advance from your credit card. Often you can get the cash by using an ATM machine. Rules differ depending on your credit card so make sure you know your cash advance limit and the interest rates for borrowing money this way.

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By Alison | Posted in Credit, Loans, Money | Comments (0)

How to Get your Tax Refund in Time for Christmas

November 2, 2009

Halloween is over which means the holiday shopping season is kicking into gear. Wondering how you’re going to afford all of those Christmas gifts this year? Put spending money in your pocket by getting your tax refund in time for Christmas shopping. Who needs all that extra cash in April? Why not get your tax refund when you really need it– in time for holiday shopping! Here are a few simple steps to take in order to get your tax refund in time for Christmas.

Find a Tax Preparer

Rather than waiting until 2010 to find a tax preparer, do it now. Look for a company that offers a Refund Anticipation Loan, or RAL. One example of a company offering great RAL service is Regional Finance.

Bring Your Latest Pay Stub

In order for tax preparers like Regional Finance to estimate what you’ll be getting from Uncle Sam in 2010, they’ll need your most recent pay stub. Then a tax preparer will use tax preparation software to estimate your tax refund.

Receive Your Funds

Once the paperwork is filed and you meet the necessary qualifications, you’ll receive your Refund Anticipation Loan in time for holiday shopping. Some companies, like Regional Finance, don’t require upfront fees when you’re receiving an RAL. But other companies may assess a fee up front. Once you get your money you are free to spend it however you wish, whether it’s a new bike for your little one or an iPod for your spouse.

Return to Your Tax Preparer

Once the new year rolls around you may need to return to your tax preparer with all of your tax documents including W-2 forms. You will file both your state and federal taxes at this time.

Pay Back Your Loan

Once the IRS sends you your tax refund check in 2010, you pay back the RAL. Since this is a loan, you will pay interest on the amount you borrowed so make sure you understand the terms of your RAL. Remember, you are paying for the convenience of having your tax refund when you really need it: in time for Christmas!

By Alison | Posted in Loans, Money | Comments (0)

Buying a Car Online Without Getting Scammed

October 26, 2009

More people are turning to the Internet for car buying these days. And why wouldn’t they? The selection is great, you can shop for a car whenever you want and you don’t have to deal face-to-face with car salesmen. Shopping online can be an extremely convenient way to buy a car. But like just about every business transaction, you can get scammed when buying a car online if you’re not careful. Here are some tips to avoid getting scammed when buying a car online.

Avoid the Lot and Shop for a Car Online

Look for Seller History

When shopping on a website for a car, do a little research on the website. Search for the company on the Better Business Bureau website and see if any complaints come up. If you’re using an auction site like eBay.com, look at the seller’s history. Have they received positive feedback? This is usually a good indicator as to how they will treat your transaction.

Talk to the Seller

You may not be able to easily talk to the seller in person, but you should at least talk to them over the phone. Ask them for more details about why they’re selling the car, how long they’ve owned it and whether they’ve had many problems. This will come in handy when you have the vehicle inspected.

Get the Vehicle Inspected

Talk with an independent mechanic and arrange to have the vehicle checked out. This will cost you some money, but it will be worth it. You’ll be able to cross check what the mechanic says with what the seller told you and see if everything makes sense. If you catch the seller in a lie you may not want to trust them with your money.

Get a Vehicle History Report

This is another investment that will pay off in the long run. The seller may tell you that the car has not been in any accidents, but a good way to find this out is by running a vehicle history report. There are plenty of sites that offer this service. A few to consider are Auto Check and CarFax.

Know the Value

Research what the car is worth using a site like Kelley Blue Book. Make sure you’re getting a fair price before signing up for the deal.

Try to Pay Securely

Using a site like PayPal to complete the transaction will help eliminate the chance for getting scammed when buying a car online. You may also want to try to pay with a cashier’s check which limits the amount of sensitive information you are passing on to others.

By Alison | Posted in General, Money | Comments (0)

Is a Debt Consolidation Loan Right for You?

October 19, 2009

If your debt seems like an ever-growing mountain of trouble that you feel like you’ll never put a dent in– let alone clear away– then a debt consolidation loan could be right for you. But it’s best to weigh all of your options before jumping in to this type of a loan. Here are the various forms of debt consolidation loans and what each type may have to offer.

Home Equity Loan

A home equity loan is one way to consolidate your debt. This type of loan uses your home as collateral for the loan which puts you at risk of losing your house if you default on the loan. For most people, their home is their biggest asset so it seems sensible to turn to your home when you’re trying to get out of debt. But with the housing market in a slump this can be risky as well because the value of your home may continue to drop and you could end up owing far more on it than it’s worth.

Personal Loan

A personal loan is another type of debt consolidation loan. It may be a good option for people who do not own their own home. If you have a low credit score, this may be a difficult type of loan to get or the interest rate may be higher than other types of loans.

Zero Percent Credit Card

You’ve probably seen the ads or received a letter in the mail telling you about a zero percent credit card. While it can be a good way to pay off debt without accruing extra interest payments they can also be dangerous. Most credit cards with this type of offer carry the zero percent rate for a specific amount of time. Once that time period is over the interest rates will shoot up, putting you back in a tough position unless you’ve made significant headway on your debt.

Debt Consolidation Loan

Various lending institutions and banks offer debt consolidation loans. The idea is that they will give you a loan to cover all of your debts, creating one big monthly payment for you rather than many smaller ones. Ideally, this would give you a smaller monthly payment because you would be able to secure a better interest rate. The downside is that it requires good budgeting since the payment is one large one instead of several smaller payments spread out over the course of the month. It’s important to do adequate research so you know which debt consolidation option is right for you.

By Alison | Posted in Loans | Comments (2)

Credit Repair Scams to Avoid

October 12, 2009

If your credit is bad you may be looking for options to fix it. But beware of scam artists making big promises to repair your credit. They’ll take your money and leave you with little improvement.

Credit Repair Scams Can Be a Major Headache

According to the Federal Trade Commission, here are some ways to tell if a company promising to repair your credit is no good:

The company asks for upfront payment. In other words– they want your money before they do any work towards repairing your credit. According to the FTC, under the Credit Repair Organizations Act, this is illegal. Credit repair companies cannot require you to pay until they have completed the services you are hiring them for.
The company neglects to tell you your rights and point out certain services that you can easily do for free by yourself without the help of a credit repair company.
The company suggests that you do not attempt to make contact with any of the three major credit reporting companies yourself, something the FTC recommends doing.
The company makes false promises to get rid of all or most of the negative credit data on your credit report.
The company tries to get you to apply for an Employer Identification Number to use instead of your Social Security number as a way to create a “new” credit identity and thus eliminating the need for your old credit report.
The company tells you to dispute everything on your credit report– even if it’s true and accurate.

Other things to watch out for are companies that claim they have an “in” with the credit bureaus and that their connections can clean up your bad credit. The system doesn’t work this way and your credit won’t be fixed. Also, don’t call a company’s 900 number for help. They are likely scammers looking to keep you on the line as long as possible so they can make more money from the call.

It may be best to follow the FTC’s guidelines for repairing your credit yourself. Even if you hire someone to do it for you, you are responsible for the work they do which could be illegal. Keep in mind that lying on a loan or credit application, misrepresenting your Social Security number and getting an Employer Identification Number from the IRS under false pretenses is a federal crime. Doing any of these activities could cause you to be charged for mail or wire fraud. That’s because using the mail, telephone or Internet to give false information is a crime.

Image courtesy of B Rosen

By Alison | Posted in Credit | Comments (1)

How to Avoid Foreclosure with a Loan

October 5, 2009

Foreclosure can be a complicated and scary process. The good news is there are many ways you can avoid foreclosure including working with your lending institution to make up missed payments, forgive missed payments or change the terms of your loan. If you do miss a payment– or several of them– one way to avoid foreclosure is by paying back missed payments with a loan. If you have an FHA loan this process is called a Partial Claim.

Here’s how a Partial Claim works. Your lender will make a one-time payment from the FHA Insurance Fund to cover your missed payments. This payment is interest-free which means the amount you must repay won’t get any bigger over time. However, if you plan on selling your home or moving, you must pay back that loan because their will be a lien on your property preventing you from selling it until you do.

Here are some additional qualifications you must meet:

You must have missed at least four months worth of payments, but not more than 12.
You now have the ability to continue making full mortgage payments.
You no longer have the issues that caused you to fall behind in the first place.
You do not have the ability to pay the past due balance through a special forbearance or through a loan modification.
The property in question is your primary residence.
You must pay off this interest-free loan when you sell or leave the property.

For more information check out these Frequently Asked Questions provided by the US Department of Housing and Urban Development. In order to know for sure if this method is right for you, get in touch with a HUD-approved housing counselor by calling 1-800-569-4287.

By Alison | Posted in Loans | Comments (0)

Could Bad Credit Keep You From Getting a Job?

September 28, 2009

Millions of Americans on the job hunt could be damaging their chances for a job just by falling deeper into debt. A report from MSN Money says that bad credit could keep you from getting a job. Although there’s not a lot of data regarding the issue, the statistics that do exist show that many employers do look at the credit history of a potential hire before offering them a job. One example? The Transportation Security Administration says that it rejects applicants for screener jobs who have more than $5,000 in overdue debt.

Should it Matter if They Have Bad Credit?

Marks on your credit history like repossessions, foreclosures or high credit card balances could cause an employer to trash your resume. According to the Society for Human Resource Management, a 2006 poll of its members showed that slightly fewer than half ran credit checks on either all or some of their applicants. That’s 25% higher than in 1998.

Some lawmakers would like to make it illegal for your bad credit to keep you from getting a job. Rep. Steve Cohen, a democrat representative in Tennessee introduced H.R.3149 back in July which would prevent employers from using credit information to make hiring decisions. Similar laws are already in place in Hawaii and Washington. The bill went to committee in late July and so far no reports have been issued. Even if the bill does pass, some employers would still be able to refer to your credit report when making hiring decisions. These situations include:

Jobs involving national security clearance or Federal Deposit Insurance Corp. clearance.

Employment with a state or local agency.

Positions at financial institutions that include supervisory, managerial, professional or executive roles.

Just keep in mind that you do have rights. In fact, an employer must have your permission to run your credit report, according to The Fair Credit Reporting Act. That means that at the very least if an employer plans to use your credit report in order to decide whether or not to hire you– you’ll know about it.

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By Alison | Posted in Credit | Comments (0)

Don’t Fall Behind: How to Pay Back that Loan

September 21, 2009

Falling behind on a loan creates a lot of stress and worry. Avoid that situation by paying back a loan quickly and on time. Here are a few ideas that will keep you on track and prevent you from falling behind on paying back that loan.

Use a Loan Calculator

Know exactly how much to pay every month and how long it will take with the help of an online loan calculator like this one from Money-Zine.com. Just plug in the loan amount, the interest rate and the term of the loan. Having a pay-off date to look forward to will help you stick to your payments.

Budget For It

Any time you start a new loan payment, make sure you add it to your written budget. Don’t have one yet? Simply write down every payment that goes out each month. Total that amount and compare it with the income you have coming in each month. This will let you know exactly how much extra you have and how much money you need to fulfill your payment obligations.

Make Sure the Payment is Manageable

Now that you’ve worked out your budget, make sure the loan payment is realistic. Or if you go through a big change– like a job loss or medical issues– talk to the company that holds your loan right away. Tell them your situation and negotiate a change in your loan payment amount. If it’s not manageable, then it’s not realistic that you’ll be able to pay back that loan on time and falling behind on your loan becomes more likely.

Pay Extra When You Can

Come into some extra money? Try putting it towards your loan. Paying extra now will mean you’ll not only pay off the loan faster, but you’ll probably pay less in interest as well. That means you’ll pay off the loan faster and it will take less money to do it.

By Alison | Posted in Loans | Comments (0)

Making Money and Getting Quick Cash Online

September 14, 2009

So you need to make some money or get your hands on quick cash? You may not need to rush out and get a job at the local pizza delivery joint. You can likely make quick money online. Here are a few ways to get your hands on some fast cash just by using your computer.

Sell Photography

Do you enjoy taking pictures? Then try turning this hobby into a moneymaker by selling stock photography. Use websites like ShutterPoint.com where they give you a cut every time one of your photos sells. It’s all done online with a few clicks and photo uploads. You won’t have to offer a sales pitch or work to sell your photos– they’ll do that for you.

Take Surveys and Read Emails

There are plenty of sites that pay when you take surveys. They’re interested in what you think about various products and services. Another company you may want to check out is SendEarnings.com. The site claims to pay you for reading emails.

Write Online

Try writing online to make extra money. Sites like ehow.com are always looking for new contributors. Simply write your articles and they’ll compensate you via Paypal. Sometimes the pay rate is per article, other times the pay scale depends on how many people read your article. Either way, it’s fairly easy money.

Apply with a Finance Company

Need a quick loan? Apply for one without leaving the comfort of your home. Check out finance companies like Regional Finance where you can submit some information online to get the process going. In just a short amount of time you’ll have cash in your account.

Sell Stuff

Clean out your closets and post items on Craigslist or eBay. You can always post items for free on Craigslist and eBay offers free listings for five items every month. Your old clothes, furniture or tools could be the secret to making money and getting quick cash online.

By Alison | Posted in Money | Comments (0)

Getting a College Education Without Getting Big Debt

August 31, 2009

Want the degree without all the debt? It is possible to get that diploma without having thousands of dollars worth of college loans following you behind after graduation. Here are some ways to get a college education without getting big debt.

Take College Courses Early

Even before students graduate from high school they can already be taking college courses. AP, or Advanced Placement, courses basically offer free college credit for high school juniors and seniors. Study hard, though because your grade will impact your college GPA.

Try a 529

Your 401k probably still appears pretty puny, but that doesn’t mean you should stop saving for retirement. The same goes for 529 plans, an educational savings plan that helps families save up for future college expenses. Everything you put into a 529 is tax deductible and it grows tax-deferred.

Apply for Scholarships

There are literally billions of dollars worth of college scholarships out there for the taking. Get your hands on some by checking out websites like CollegeScholarships.com.

Know What You Want

There’s something to be said for knowing what you want. Every time you change your mind– and your major– you are adding precious time onto your college career. And we all know that time equals money– especially when it comes to college.

Go to Public School

It doesn’t take a degree to figure out that public school is way cheaper than private school. Take a look at these statistics from CollegeBoard.com. The average price of private school tuition was $25,143 in 2008-2009. Compare that to the $6,585 price tag for a year of public school tuition and it’s not hard to pick out the bargain.

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