About100DayLoans.com

The problem with people who are not financial literate is that lenders may charge them very high rates on the loans. How do lenders know whether the individual has knowledge about payday loans? It’s quite easy actually. When you talk to your lender before accepting the loan the lenders who have quite good experience in this field can know easily how much knowledge their clients have on payday loan laws, interest rates etc. If they sense the person applying for a loan does not have much knowledge, they offer them higher than normal rates. Poor customer accepts it without verifying the facts. Lender benefits.

Now partially the customer is to be blamed too. Why should you buy a product without doing proper research about it? Do you ever buy a costly electronic item or something very costly without doing any research? No!

We all do some research before we plan to buy a costly product. Then why do we buy payday loans and other financial products without doing proper research on them?

What we can conclude is that it’s boring to study about financial products. It’s even boring to read about payday loan laws. People just want cash and want to know how much they need to pay back – that’s it. They don’t want to know the nitty-gritty of the payday loan laws. Lenders know this and some lenders charge extra when they come across an applicant with little knowledge of payday loan interest rates.

However not all lenders do this. Some just play by the rule. Interestingly they are the ones who remain for long in business. Lenders who charge rates above lending laws eventually get caught and their business is finished.

The point of this post is simple – we all should read about payday loan and understand how they work, know the payday lending laws of our state and what happens if we fail to payback.

That way we will be safe and loan sharks may not be able to use our innocence to their benefit.

We all know how important cash is during an emergency. And almost everyone turns to payday loans during these important times when they don’t have cash and they need it urgently.

Its not that they don’t know the high interest these loans carry. It’s just that they need cash and they are willing to pay for it whatever the cost.

Why this is so and why people still look for payday loans in an emergency?

It’s because when a problem comes the first thing that comes in our mind is to “get rid” of the problem as soon as possible. That may make us happy or not, we don’t know but we just want to get rid of the problem.

We forget that by taking a payday loan we may get into another problem that may take us years to get away with.

That means we are more bothered with short term problems than with the long term ones.

It’s strange but true. That’s one of the reasons why payday lenders are doing good business. They are giving you short term solutions but if you don’t pay them back in time you get into long term problems.

This is why we keep saying again and again. Please pay your dues in time and with full interest and fees if possible. If you don’t pay, the lenders will be happy increasing their bills and it will pile up so much that you won’t be able to pay.

This isn’t good either for you or for your lender. Sometimes these financial issues drag on for years. You don’t want you personal life getting disturbed due to this.

Payday loans are not a sin. They are there for emergencies only. Treat them as such. If you really need a payday loan – take them and pay them off in full as soon as it’s possible.

Yes though we are in this business, we admit that payday loans are very costly loans. Many people cannot payback these loans and get into a debt trap. However everyone needs cash in emergency situations and some just don’t have it. Its OK, everyone faces this situation at least once in life. However, it is during this time that people look for a payday loan – and that may not be the only solution.

There are alternatives to payday loans that you may try if you are not comfortable taking a payday loan or your financial situation does not allow for any high interest loan. Here are the alternatives:

1)    Ask your employer for a payday advance. Your employer is someone who can help you in an emergency. Try to keep a good relationship with your employer. In time of need they are the ones who can be of help. Explain them your situation. They may be able to help you. They may give you an advance payment. You can pay them later or on your next salary. Of course this cash does not carry any interest. 🙂

2)    Call your bank. Check with them if they issue any short-term cash loans with LESS interest rate than a normal payday loan. If they do, apply for a loan. (Some banks do give small loans. You need to check with your bank if they give. Don’t assume that they don’t give small loans.)

3)    If your bank does not provide short-term loans, call your credit union. They may have something to help you. They might provide you the cash you want at a lesser interest rate.

4)    You can even ask your creditor if they can give you some extra time to pay. Tell them this “time” isn’t far away. It’s just your next payday. If they can wait till your next payday that should be fine. If they are not interested then ask if they are willing to give you time with an interest on the cash you owe to them for a specific time period. They might give you time.

5)    You can even borrow money from your relatives or friends. You won’t get help until you ask for help. You will be surprised to know how much your friends/relatives are willing to help you. But please be honest. If they give you cash its in good faith. You must return them this cash within the time period you have promised them.

In addition to the above you must also ensure that you don’t let such a situation come in your life that you will have to depend on a payday loan to resolve that crises. For that it’s important you plan your financial future. It’s not possible for us to write on this as this beyond the scope of this article. However in short we can only say:

1)    Save money. Don’t buy things you don’t need. Buy what you need and not what you want.

2)    Make a realistic budget. Follow that strictly.

3)    Get a paid and certified financial planner. A free financial planner will do more harm than good.

4)    If you are deep in debt then get help of non-profit consumer credit counseling.

When you are applying for a payday loan you need to submit some personal and sensitive information like your bank details which includes the Bank number, ABA Routing number etc. You may also have to write your Social Security number etc.

Some lenders ask for a lot of personal information, some less but they do ask for these information. Many people are not comfortable in revealing their personal details. And rightly so, but unfortunately there are good reasons why this information is required by the payday loan lenders. We will discuss shortly.

When you are applying for a cash loan the lenders must know where to send the cash. They can’t send the cash through courier or postal mail. That’s illegal. The only way they can send cash is through bank to bank electronic transfer (wire transfer). Well they can also send a check. But a check will take a lot of time to reach you. Further it will take more time to get cleared in your bank. Almost a week will pass before you receive the money by check. Therefore the only quick way to send you cash is through a wire transfer. For this they may need some information about your bank account number and your banks’ details. To get your cash you should fill these details correctly.

As far as social security is concerned, the lenders need it to know more about your financial status and they can’t know that with your name. They need your Social Security Number.

Other personal information if any is required to verify your identity. Lenders must be sure that it’s you and no one else who is trying to get a loan using your personal information.

But don’t worry. The payday loan websites and their lenders are bound by law to keep your information secure and confidential. Therefore it’s important that you read the privacy policy before applying for a payday loan in any of the site. Apply only if you are confident that they will keep your sensitive information secure.

If a payday loan site does not have a strict privacy policy in place its better to leave that site immediately and apply for a loan in some other site or with some other lender.

Once the deal is over you can also mail your lender to delete your sensitive information in their database. Most lenders will delete your information upon your request.

Some rich payday lenders and companies are forging a huge amount in a bid to try getting more respect from Washington. They are tying to shed the name “payday lenders”. They want to be called “Short-Term Loan Lenders.”

To Quote from the Bloomberg article:

Firms offering short-term online loans, including Fort Worth, Texas-based Cash America International Inc. (CSH), are ramping up political contributions, hiring lobbyists and asking Congress to largely transfer oversight from states to the U.S. Office of the Comptroller of the Currency. A House committee today will hold a hearing on the proposal, which the OCC itself opposes.

As the $11 billion online loan industry bulks up in Washington, it also aims to shed the “payday lenders” label, according to talking points drafted by Peter Barden, a spokesman for the Online Lenders Alliance.

More information can be found here.

We have some pointers as to why these cash-rich companies want a change in the name.

Payday lending has a bad reputation in the business industry. Everyone right from the legislators to common man looks this business as a necessary evil for people who don’t have access to credit. In fact the criticism of the term payday lending has made some lenders avoid the term completely.

Other than short-term loans, some of the lenders prefer to call these loans “direct deposit advances”, “checking account advances”, “signature loans”, “unsecured loans” etc.

When the purpose is emergency cash requirement, a payday loan does help. But it becomes a bigger problem when the borrower is unable to payback the loan.

Since a lot of people are unable to payback the loan, they fall into a debt trap never to come back again. These people tell their stories to people they know, write it online, twit it on twitter or facebook etc. These stories get popularized. Hence the industry gets a bad name.

Whatever the case may be, the industry has got a bad name.

We think it’s a step to kind of re-brand the whole industry. If people stop saying “payday loans” and start saying “short-term loans” it gives an image makeover to the whole industry. And who knows it will get a better image than it has now.

Another reason is by name itself “payday loan” does not mean anything. A short-term loan defines the real purpose of the loan and the business itself. It makes sense and reminds the person who has taken a loan that it’s meant for short-term only and that it needs to be paid back in a short period.

Some interesting facts: The payday industry is known to contribute millions of dollars during elections and help the legislatures win elections. They play a huge role in the presidential elections as well. Moreover they have their own pressure groups and insiders in the government who support them if they want something from the lawmakers. And more often than not they get it.

It will be interesting to see if the payday lenders are able to pass this proposal.

Most payday loan companies have systems in place that makes sure your personal data is protected. Payday loan companies usually don’t sell your data to make money. They make money by giving loans, not by selling data. They are not into data selling business.

But you should ensure you are only applying with companies that have in their terms that they will protect your data. Good news is that most payday loan companies keep your data secure. Moreover now-a-days there are so many laws to protect privacy that they have no other option but to keep your data secure. If caught their business might be closed. They would like to remain in business, don’t they?

But why do payday loan companies ask for your data?  Payday loan companies need your data to give you a loan. If you don’t give them your bank account number, social security number and other details, how will they ever give you a loan?

You see lenders need this data to give you a loan – one to take a decision on whether to approve you for a loan or not, second – to send the cash to your bank account. For both your data is required.

Online payday loan companies have a website from where you can apply for a payday loan. These websites needs to be secured as a lot of sensitive data passes through when you apply for a loan. Most of the payday loan companies online have a website that is secured. Which means it will have https:// at the start of their URL instead of the usual https://. If you see a payday loan website with only https:// it means they have not secured their site and there is a possibility that your data may be stolen when it’s traveling online through the wires. It’s advisable to apply a loan only through secured websites.

Don’t worry the popular and big payday loan companies have made their websites secured. Even 100 Day Loans has made its website secured so if you want to apply a loan from them you can apply in their https:// version of the site. Its here: https://www.100dayloans.com/

The secured payday loan websites uses modern encryption technology to ensure that your valuable personal data is posted in their servers, read and exchanged only with authorized persons and or lending partners.

All this will be written in the terms page of the site. Or you may need to ask the lender before applying online how they secure your personal data such as social security and bank information.

If your lender is unable to answer your security related questions – it’s better to avoid that lender. You are better off applying with a payday loan company that will secure your data.

If you apply for a payday loan with 100 day loans, and if you are a first time customer – don’t expect that they will approve you for a loan of $1000. This is very rare. In fact first time customers may not get approved for more than $500 even if they have all the credentials right.

A lot of things also decide how much the lenders will offer you as a loan. Your application says a lot about your financial status. Based on the information you provide lenders will match the data with the data of their own (which they get form third parties). Please note that not everything can be matched. Therefore the lenders rely a lot on what you say in your application. If the lenders feel you should be approved for a loan, they will decide an amount based on what they can figure out from your application and from their own data.

NOTE: Don’t lie in your application. It won’t help. If you are caught, your loan will get denied even if you are a right person to get a loan. Moreover lenders will take a note of this, it may get recorded with the data keepers of the payday loan industry and you may be rejected for a payday loan for a long time.

However as written earlier whatever your financial status, in most cases you will not be approved for a loan amount greater than $500 if you are first time customer.

But if you prove that you are good customer. Means you payback the loan in time, without any hassles, the lenders will be willing to offer you a higher amount the second time you apply. And again the third time they may increase the amount. This can go up to $1000 as the maximum amount you can get from your lender. Even if they trust you 100%, your amount will not increase more than $1000 for a single loan. Unfortunately one person can take no more than one payday loan at a time.

Therefore if you need more than $1000 loan you may have to look beyond payday loans.

The amount that is decided also depends on state laws and regulations. It’s not possible for us to write laws of payday loans for every state. However please read this page to know more about the payday loan laws of your state.

The Online Lenders Alliance (https://www.onlinelendersalliance.org/) has changed certain rules of advertising of the payday loan industry from June 01, 2012 as it gets strict on responsible lending.

One of them pertains to the advertisements saying “Get Your Loan in 1 Hour”. Online Lenders Alliance has issued notice to all affiliated lenders to make sure they stop this practice once and for all with effect from June 01, 2012.

Henceforth all its members may not advertise either online or offline to their consumers that they may get a loan in 1 hour. Of course they can advertise a few hours, one day, 24 hours, overnight or anything related, but get your loan or cash in 1 hour is strictly forbidden from being advertised.

You may also see the affect in the online advertisements. Rarely any company now advertises that they can offer a loan in 1 hour.

This also reflects in the 100 Day Loans website and advertisements.  If you visit their home page you will find that it says: Cash within hours! Earlier (before 01-June-2012) it used to say Cash in 1 Hour. With 1 Hour underlined.

This is a marked difference from the earlier statement.

Now let’s discuss if for the consumers does the “Get Your Loan In 1 Hour” actually makes a difference.

Any person who has ever applied for a payday loan knows the fact that getting a loan in 1 hour in near impossible. There are many factors that determine the time taken to get the cash in their bank account. It depends on the lender, the bank, and other factors. Practically it’s just not possible that you get your cash in 1 hour.

No wonder the Online Lenders Alliance has become too strict on these wrong practices of advertising. Advertising in a wrong way also gets you customers that you don’t want. It is in the benefit of the industry that they advertise the reality and not something that’s not possible.

For long this statement was used to promote a product that actually does not fulfill what it advertised. And we feel Online Lenders Alliance has taken a good step in the right direction.

For more information please visit the site:
https://www.onlinelendersalliance.org/

One thing is for sure, you cannot keep the cash you got as a payday loan from 100 day loans for as long as 100 days. If you keep be prepared to pay a heavy fee.

Just like in any other payday loan company, it totally depends on your lender, your financial condition and the state laws that usually decide how long you can keep the loan.

If you are taking a payday loan from 100 day loans thinking that you can keep the cash for 100 days then you are wrong. No lender in this business can afford to give you cash for 100 days.

Under normal circumstances, if you get approved for a loan, you need to pay it back on your next payday. The only difference 100dayloans has with other lenders online is that they are very aggressive with taking a decision of lending. It means your chances of getting approved with them are much higher than with any other lender. But there is a catch, since they are taking more risk, there lending rates may be higher.

That’s one of the reasons why 100dayloans.com has become very popular in recent times. After all in times of need, you need a loan, and you don’t bother much about the interest rates. Do you? 10 dollars here and there doesn’t make much difference if you get the cash when you need it urgently. That’s what payday loans are for.

If you really want to keep your loan for a longer duration, you can inform your lender about it. Usually your lender will mail you 1 or 2 days before the due date of loan. You can then call them and explain your situation and tell them you may not be able to payback the loan. Your lender will have a better option than you may think. They might give you a few more days to keep the loan, of course with a fine. They may even ask you to go on a rollover. Whatever it is, your lender is in the best situation to explain you what you need to do to keep the loan for a longer period. After all you owe him money.

Never try to escape the situation without paying. You will only harm yourself. Your credit may suffer. No one will ever give you a loan and it may take ages to improve the situation.

Remember most lenders are interested in getting their money back. It means the principal is more important to them. If you can at least payback the initial loan amount that was given to you, they may perhaps give you a few more days to payback the fees without any fine. But all this depends on your lender and the way you explain your situation.

You have many more options if you are unable to payback your loan. Decide for yourself which is the best option for you.