Family Finances – Is Depo http://isdepo.com/ Tue, 20 Sep 2022 23:06:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://isdepo.com/wp-content/uploads/2021/05/isdepo-150x150.png Family Finances – Is Depo http://isdepo.com/ 32 32 Predatory payday loan companies thrive under unequal laws and stolen data | local news https://isdepo.com/predatory-payday-loan-companies-thrive-under-unequal-laws-and-stolen-data-local-news/ Tue, 20 Sep 2022 19:46:57 +0000 https://isdepo.com/predatory-payday-loan-companies-thrive-under-unequal-laws-and-stolen-data-local-news/ Specially for The News Herald ASHEVILLE — As consumers lost jobs and struggled to make ends meet during the COVID-19 pandemic, many turned to payday loans and other short-term solutions. This not only allowed predatory lenders to thrive — many borrowers still grapple with sky-high interest rates and opaque fees — but also created a […]]]>

Specially for The News Herald

ASHEVILLE — As consumers lost jobs and struggled to make ends meet during the COVID-19 pandemic, many turned to payday loans and other short-term solutions. This not only allowed predatory lenders to thrive — many borrowers still grapple with sky-high interest rates and opaque fees — but also created a fertile environment for scammers, according to new in-depth research from the Better Business Bureau.

Payday loan laws are handled state-by-state in the 32 states where they are available, and an intricate web of regulations makes it difficult to track the impact of the industry across the US. However, the BBB study finds a common thread in the triple-digit interest rates many of these loans carry — cloaked by interest compounded weekly or monthly rather than annually, along with significant rollover fees.

From 2019 to July 2022, BBB received nearly 3,000 customer complaints about payday loan companies with a disputed dollar amount of nearly $3 million. In addition, BBB has received more than 117,000 complaints against collection agencies.

People also read…

Complainants often indicated that they felt misinformed about the terms of their loans. Many fall into what consumer advocates call a “debt trap,” piling on interest and fees that can leave customers paying double the amount originally borrowed. A woman in St. Louis, Missouri, recently told BBB that she paid over $1,200 over the course of her $300 loan and still owes another $1,500.

Scammers didn’t miss an opportunity to take advantage of consumers either, as BBB Scam Tracker received more than 7,000 credit and collection fraud reports, resulting in a loss of approximately $4.1 million.

Impersonating payday loan companies and debt collectors, scammers arm themselves with stolen information to convince consumers to give up bank account information and cash. In one case, BBB found that hackers had stolen and released detailed personal and financial information from more than 200,000 consumers. News reports suggest this is not an isolated case.

Just two weeks ago, a North Carolina man received a voicemail from a company called Document Delivery Services advising him that a civil lawsuit was pending and that he must contact the issuing company. The phone number the scammer called from was a different phone number than the one left in the voicemail. When the man called both numbers back, they were answered by the same man, who said he was with a company called Parker & Schultz. The scammer continued to recite much of this consumer’s personal information, but when the scammer mentioned having debt on a credit card that the consumer had never owned, he knew it was a scam. Eventually the scammer got agitated and said it would be taken to court and hung up. Luckily, this consumer was smart enough to realize it was a scam and suffered no financial loss.

Federal regulators have enacted stricter laws to curb predatory lending, but those regulations have been reversed in recent years, allowing states to create their own rules for interest rate caps and other aspects of payday loans. More than a dozen states passed laws regulating payday loans in the past year, but the landscape for legally operating payday loans remains patchy from state to state. Currently, 18 states don’t allow payday loans, according to the Pew Charitable Trust.

Additionally, the Military Lending Act sets a rate of 36% on certain payday loans. When it comes to fraudulent behavior, law enforcement agencies are limited in their ability to prosecute payday loan scams. Some legit payday lenders have attempted to prevent fraud by educating consumers on how to contact borrowers and how not to contact them.

The BBB study advises consumers to carefully research all of their borrowing options — as well as the terms of a payday loan — before signing anything to take out a short-term loan.

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HelpPays launches a peer-to-peer marketplace for microcredit and direct loans for family and friends https://isdepo.com/helppays-launches-a-peer-to-peer-marketplace-for-microcredit-and-direct-loans-for-family-and-friends/ Tue, 13 Sep 2022 12:00:00 +0000 https://isdepo.com/helppays-launches-a-peer-to-peer-marketplace-for-microcredit-and-direct-loans-for-family-and-friends/ HelpPaid brings an inclusive touch to lending and gives everyone access to capital with peer-to-peer microcredit for all communities. DETROIT, September 13, 2022 /PRNewswire/ — Anyone can borrow anything from anyone HelpPaid, a peer-to-peer microcredit platform. It facilitates family and friend loans by allowing individuals to send requests directly to each other. HelpPays takes care […]]]>

HelpPaid brings an inclusive touch to lending and gives everyone access to capital with peer-to-peer microcredit for all communities.

DETROIT, September 13, 2022 /PRNewswire/ — Anyone can borrow anything from anyone HelpPaid, a peer-to-peer microcredit platform. It facilitates family and friend loans by allowing individuals to send requests directly to each other. HelpPays takes care of contracts, payments and late payment reminders to avoid awkward conversations about money.

HelpPays co-founders Shamari Benton, CEO (left) and Emmanuel Aubrey, CTO (right).

HelpPays launches a peer-to-peer marketplace for microcredit and direct loans for family and friends.

HelpPays also has a crowdfunding marketplace where borrowers can post small contributions 50 dollars Credit inquiries to build their credit score. Larger loans are granted to borrowers after successful loan repayment. Microlenders receive high returns for the credit risk. However, donation protection comes with any loan, which gives lenders the benefit of writing off potential micro-losses as qualifying donations instead. Although defaults do occur, mutually beneficial connections are more likely to form with open chats between borrowers and lenders in true peer-to-peer form.

With payday loans, if a consumer is unable to repay their loan by payday, the loan is extended or “rolled over” at a compound interest rate with associated financing fees. According to that CFPB, 80% of payday loans are rolled over, which puts the borrowers in vicious circles of debt. With HelpPays, borrowers only pay back the interest requested, and loan extensions have no penalty.

“We are building a HelpPays community. For every benefit we give to a lender, we look for a way to extend it to a borrower.” said CTO and co-founder Emmanuel Aubrey.

198 million Americans living paycheck to paycheck can’t afford it $1,000 Emergency such as a car accident, sudden illness or pandemic. 26 million Americans are considered credit invisible, meaning they lack the credit history or documentation to access traditional financial services. So it’s no secret why 26 million people (more than 10% of all adults) rely on loans from family and friends, according to the Census Bureau Household Pulse Survey of Finances. HelpPays is designed to fill these funding gaps and be an alternative source of capital for those who need it most.

“We’re making a big bet that we know to be true. Americans care and are willing to help other hard-working, honest Americans. HelpPays prides itself on delivering meaningful returns to our lenders and providing dignity and confidence to our borrowers.” said CEO and co-founder Shamari Benton.

Around
That HelpPaid Marketplace allows anyone to lend or borrow microcredit for up to 9 months to build credit. All loans are protected against donations. We are democratizing access to credit for further financial inclusion. We allow direct connections such as family and friends to get involved with direct lending outside of our marketplace. HelpPays provides the support needed to facilitate loans between borrowers and lenders.

Contact
Shamari Benton
CEO & co-founder
Sbenton@HelpPays.com

Disclaimer: Our content is intended for use and may only be used for informational purposes. It is very important that you do your own analysis before entering into any agreement based on your personal circumstances.

HelpPays logo

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decision

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SOURCE HelpPays, Inc.

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Scammers are now targeting payday loans https://isdepo.com/scammers-are-now-targeting-payday-loans/ Wed, 07 Sep 2022 13:10:00 +0000 https://isdepo.com/scammers-are-now-targeting-payday-loans/ HASTINGS, Neb. (KSNB) — Scammers are advancing their methods to target the bank accounts of hard-working Americans, and payday loans are the latest move. These types of loans are aimed at people who need a quick fix or something to make ends meet until their next payday. The BBB says scammers posing as payday loan […]]]>

HASTINGS, Neb. (KSNB) — Scammers are advancing their methods to target the bank accounts of hard-working Americans, and payday loans are the latest move. These types of loans are aimed at people who need a quick fix or something to make ends meet until their next payday.

The BBB says scammers posing as payday loan companies or debt collectors have affected more than 200,000 people, costing them about $4.1 million. Experts say victims usually feel that this is the only option available to them.

“What is really devastating about these scams is that they marginalize people. These are people who are typically desperate for money and have a very short time frame to work, so they’re willing to overlook a lot of the red flags that we mentioned in the fraud study,” said Josh Planos, vice president for Communications and Public Relations of the Better Business Bureau.

The playbook isn’t all that different from other types of scams, and payday loans have a broad cross-section; but they target a specific set of consumers.

“Typical middle age. Children and teenagers are not usually looking for payday loans, but it depends on the type of debt collection scam. We send out press releases about scholarships and educational debt all the time,” Planos said.

From 2019 to July 2022, BBB received nearly 3,000 customer complaints about payday loan companies with a disputed dollar amount of nearly $3 million. In addition, BBB has received more than 117,000 complaints against collection agencies. Complainants often indicated that they felt misinformed about the terms of their loans. Many fall into what consumer advocates call a “debt trap,” piling up interest and fees that can result in customers having to pay twice the amount originally borrowed.

“They come to these places largely because they are desperate for a solution and have exhausted all other avenues. So what’s particularly notorious about this type of scam is that it targets people who are already on the fringes, who have already lost their luck,” Planos said.

Consumers are urged to look for the signs before scammers catch them and put them in a compromising position.

“The reality is that your life may never be the same again. I hate to put it bluntly, but it’s really something that threatens your future purchasing power, your absolute creditworthiness, your ability to pay for anything.”

Federal regulators have enacted stricter laws to curb predatory lending, but those regulations have been reversed in recent years, allowing states to create their own rules for interest rate caps and other aspects of payday loans.

It varies from state to state so the process is different for people going to these payday loan companies.

The BBB has recommendations for regulators:

  • Limit consumer credit to 36%
  • Make more people aware of no-fee extended repayment plans
  • Prompt lenders to check whether consumers can repay loans
  • Encourage Zelle, Venmo, and other payment services to offer fraud refunds

Where to report a payday loan scam or make a complaint:

  • BBB.org/ScamTracker
  • Federal Trade Commission (FTC) – ReportFraud.ftc.gov
  • Canadian Anti-Fraud Center (CAFC) – Online or by phone at 1-888-495-8501
  • Prosecutors can often help. Check your attorney general’s website for information on whether you can file online.
  • If you have an overdue payment on a payday loan, the Consumer Financial Protection Bureau may have resources to help you create a payment plan.

Experts say some victims of the scam are still struggling to pay bills and get food on the table. They also urge anyone who will be applying for a payday loan to ensure the company is accreditable.

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Payday loan scams consumers should watch out for: fake loans, stolen information, scams https://isdepo.com/payday-loan-scams-consumers-should-watch-out-for-fake-loans-stolen-information-scams/ Sun, 04 Sep 2022 20:49:06 +0000 https://isdepo.com/payday-loan-scams-consumers-should-watch-out-for-fake-loans-stolen-information-scams/ Payday loans in the United States is an extremely predatory industry and now the landscape is deteriorating as scammers pose as popular Lenders try to scam people. A new Better Business Bureau report on these scammers sheds light on the story of Shirleywho “received a call from a woman saying her name was”Lauren Green.Lauren told […]]]>

Payday loans in the United States is an extremely predatory industry and now the landscape is deteriorating as scammers pose as popular Lenders try to scam people.

A new Better Business Bureau report on these scammers sheds light on the story of Shirleywho “received a call from a woman saying her name was”Lauren Green.Lauren told Shirley that she “qualified for a $5,000 loan from West Point Lenders,” but that she “had to pay $535 as a fee‘ before the money was deposited into their account. Then Green said again: “Another $535 was needed due to bad credit.” However, after Shirley handed over the $1,070, Lauren disappeared with Shirley’s money, and when she did some research, She determined that the company was fake and that her information had been stolen.

Be careful…

Many scammers use names associated with major payday lenders to tarnish the notoriety of some of these companies. The BBB has warned that scammers posing as debt collectors can also use the same tactics to “make their threats sound more serious”.

How many payday loan scams have been reported this year?

While the total number of scams reported to the BBB has decreased, the amount deducted from scammers has increased over the years:

  • 2019 – reports: 1,151 | losses: $856
  • 2020 – reports: 741 | losses: $900
  • 2021 – reports: 760 | Losses: $765
  • 2022 – reports: 403 | losses: $1,000.

These numbers should be taken with caution as the BBB estimates this only about ten percent of fraud cases of this type are reported to the organization – which means that the extent of the Problem is much larger than what these numbers represent.

The federal government should take note of people’s willingness to pull off the scam, as many reported falling for it because “You were already in debt on payday loans.” After being scammed, some victims also reported: “months behind on rent and other bills due to the financial toll these scams took.”

A general warning for those interested in a payday loan

Payday lenders are one of the most unregulated aspects of financial services. The BBB reported that their scam trackers “that despite efforts across the country to curb the power of payday loan companies, many Americans are still trapped” in debt cycles after taking out one of these loans. These agencies use complicated formulas mask high interest rates applied to credits that can achieve more than four hundred percent. BBB researchers shared the story of Wanda, a Georgia senior who took out a $1,000 payday loan to build up her credit.

Buried behind all the fees and paperwork, their real interest rate was nearly 450%. She soon regretted the decision‘ the report said, noting that these companies often take advantage of older people. “They charge you every two weeks and It adds up to around $400.00 to $600.00 per month to repay such a small amountt,” Wanda said in an interview with the report’s authors.

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The Better Business Bureau’s attack on payday loans is a disservice to consumers https://isdepo.com/the-better-business-bureaus-attack-on-payday-loans-is-a-disservice-to-consumers/ Fri, 02 Sep 2022 13:30:29 +0000 https://isdepo.com/the-better-business-bureaus-attack-on-payday-loans-is-a-disservice-to-consumers/ The unfair and inaccurate attacks on the payday loan industry are now reaching new heights. On September 1, 2022, the Better Business Bureau (BBB) ​​released an investigative report lumping all payday loan businesses as scammers breaking the law to take advantage of people and make money. While consumers should be wary of bad players in […]]]>

The unfair and inaccurate attacks on the payday loan industry are now reaching new heights. On September 1, 2022, the Better Business Bureau (BBB) ​​released an investigative report lumping all payday loan businesses as scammers breaking the law to take advantage of people and make money. While consumers should be wary of bad players in any industry and learn to distinguish them from legitimate companies, the BBB report does a disservice by not providing such information. The comments made are certainly not consistent with the BBB’s mission to identify and address “substandard market conduct” as “leading in promoting market confidence.”

Payday loans are typically short-term, small-dollar loans that help Americans pay bills, some of which are needed for emergency purposes, that are due between their paychecks. These loans are usually for small amounts of money, have a short-term repayment schedule, and have a higher interest rate than traditional loans. According to Thomas Miller, Jr., a professor of finance at Mississippi State University, testifying before the Senate Banking Committee on July 29, 2021, “Americans who depend on small dollar loans provided by non-banks are not wealthy, and many live on an uncertain paycheck uncertain paycheck.” Small dollar payday loans help these consumers make ends meet and improve their credit ratings.

Despite the benefits that small dollar payday loans offer consumers, lawmakers and regulators are hostile to the industry. Sen. Elizabeth Warren (D-Mass.) has long been hostile to payday lenders and suggested that the “problem” could be solved by allowing the US Postal Service to enter the banking business. For this idea, she was named Porker of the Month by Citizens Against Government Waste (CAGW) in February 2014. In the Postal Service Reform Act of 2022, which went into effect April 6, 2022, Congress wisely kept the USPS from getting into postal banking, which Senator Warren continues to promote.

In 2017, the Consumer Financial Protection Bureau (CFPB) finalized a rule under which the agency would end “payday debt traps” by removing the ability of payday lenders to enforce repayment by preventing repeated debit attempts. In May 2019, Citizens Against Government Waste sent a letter to CFPB Director Kathy Kraninger, urging the agency to repeal this rule, which considers offering a payday loan without determining a borrower’s ability to repay an “unfair” and “abusive” practice would.

Among other recommendations, the BBB report suggests imposing a 36 percent interest rate cap, as has been done in several states (and objected to by CAGW), and enacting legislation to allow the Federal Trade Commission (FTC) to do so would claim monetary damages in federal court. If Congress follows the BBB’s recommendations, it would authorize FTC Chairwoman Lina Khan to continue her mission of wielding power over every industry possible.

The payday loan industry allows consumers to make ends meet and build credit, especially low-income Americans. Despite the benefit they offer, several congressional Democrats, federal agencies, and now the BBB, are attacking an entire industry by suggesting that legitimate payday loan companies are tantamount to the scammers who prey on low-income individuals and households by illegally acquiring information about these Americans and their fraud. Instead of attacking legitimate payday lenders, states and Congress should ignore the BBB report and focus on identifying and prosecuting scammers.

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Short Term Loans vs. Bank Overdraft Fees – InsideSources https://isdepo.com/short-term-loans-vs-bank-overdraft-fees-insidesources/ Tue, 30 Aug 2022 23:30:14 +0000 https://isdepo.com/short-term-loans-vs-bank-overdraft-fees-insidesources/ What’s more expensive for consumers with poor credit—the daily cost of a short-term loan or an overdraft fee? The answer may surprise you. Short-term credit continues to get a bad rap in American political discourse and is routinely viewed as predatory by lawmakers who believe it unfairly targets low-income Americans. These federal and state lawmakers […]]]>

What’s more expensive for consumers with poor credit—the daily cost of a short-term loan or an overdraft fee? The answer may surprise you.

Short-term credit continues to get a bad rap in American political discourse and is routinely viewed as predatory by lawmakers who believe it unfairly targets low-income Americans. These federal and state lawmakers argue that short-term lenders are taking advantage of vulnerable Americans by offering high-interest loans that they cannot afford to pay back. Therefore, they conclude that strong consumer protections are needed to curb these unsavory business practices. Oddly enough, these same lawmakers often have little to say about overdraft fees and a much greater burden on consumers.

In the past decade, 19 states have enacted laws and regulations capping interest rates on small loans. The pressure to act is also growing at the federal level. Last year, several senators proposed legislation that would impose a 36 percent APR cap on short-term loans and effectively ban all loans with an interest rate higher than 36 percent.

Such a proposal, if implemented, would prove devastating for short-term lenders who rely on the ability to adjust interest rates to protect them from high-risk consumers. Research suggests that high interest rates are often required to recoup the cost of loan defaults and reap even the smallest of profits. The loss of that flexibility has repeatedly caused companies to exit the market in states like Illinois, which have introduced a 36 percent interest rate cap.

A national interest rate cap would be even more damaging to consumers. This is because the 12 million Americans, or 5.5 percent of the population, who use short-term credit are typically unbanked or unbanked. These Americans either do not have access to credit from traditional financial institutions or have limited access to credit from other lenders. Either way, these Americans rely on alternative forms of credit available only from short-term lenders.

Therefore, an arbitrary cap of 36 percent APR would adversely affect these Americans.

Contrary to the strict regulations imposed on short-term lenders, many large banks face few restrictions in the practice of making profits from overdraft fees. Overdraft fees, imposed by the bank on customers who withdraw more money from their accounts than they have, are an important source of revenue for banks. According to the Consumer Financial Protection Bureau, overdraft fees and insufficient fee income account for “nearly two-thirds of reported fee income.” In 2021, consumers paid more than $8 billion in overdraft fees.

Unfortunately, according to the Federal Reserve, this revenue is often collected from Americans who are more likely to be “lower-income adults, less educated adults, and Black and Hispanic adults.” In fact, research from the CFPB found that “8 percent of customers pay nearly 75 percent of all overdraft fees,” meaning those Americans who can least afford to pay them are responsible for a disproportionate share of overdrafts.

A quick comparison between a typical short-term loan and a standard overdraft fee illustrates how absurd it is to focus on strict interest rate caps for payday lenders when banks continue to charge high overdraft fees.

For example, a 36 percent APR cap on a two-week $200 loan results in a consumer fee of just 0.6 percent per day on the loan. In contrast, some major banks charge an overdraft fee of $36, which translates to an effective interest rate of 18 percent for a day. In summary, we see a short-term loan at 36 percent APR and an overdraft fee at 915 percent APR.

This example shows the huge discrepancy between a typical short-term loan and a typical overdraft fee. Still, lawmakers seem intent on disproportionately scrutinizing payday lenders and denying high-risk consumers access to short-term credit.

According to a 2016 report by survey firm Tarrance Group, 96 percent of borrowers said “the payday loans they took out were personally useful to them.” Additionally, a 2020 Morning Consult poll found that a strong majority of Americans think the “amount lenders should be able to charge for a $100 two-week loan” exceeds Congress’s proposed cap of should exceed 36 percent.

The reality is that payday lenders are providing a valuable service to unbanked and unbanked Americans, and lawmakers are threatening to take it away. Americans who would not otherwise be eligible for a line of credit, many of them low-income and people of color, can do so with a small loan. This small loan can be anything that stands in the way of a family paying their next month’s rent or being evicted.

Legislators should resist the urge to impose payday loan caps that only penalize the very people the law was intended to help. Such a regressive law would almost certainly lead consumers to choose alternative, far riskier forms of credit, such as those offered by B. are available from shady loan sharks and pawn shops.

Instead, lawmakers should focus on the big banks, which continue to enrich themselves at the expense of their poorest customers. It’s overdraft fees, not payday loans, that penalize low-income Americans for not having enough money in their bank accounts. And it’s overdraft fees that keep pushing people out of banking.

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In the rise of expensive pawn loans – and affordable alternatives https://isdepo.com/in-the-rise-of-expensive-pawn-loans-and-affordable-alternatives/ Sat, 27 Aug 2022 22:36:14 +0000 https://isdepo.com/in-the-rise-of-expensive-pawn-loans-and-affordable-alternatives/ If money is tight, you may have thought about pawning an item of value. It might be jewelry, a watch, or a handbag. 1 We examine pawn loans and advise on favorable alternatives The cost-of-living crisis has led to a boom in pawn shops – where money is given in exchange for a valuable item […]]]>

If money is tight, you may have thought about pawning an item of value.

It might be jewelry, a watch, or a handbag.

1

We examine pawn loans and advise on favorable alternatives

The cost-of-living crisis has led to a boom in pawn shops – where money is given in exchange for a valuable item that can be sold if repayment is not made.

But experts warn that borrowing is expensive, and if you can’t service the debt, you could lose a possession of sentimental value.

This week, Sun Money examines these loans and offers advice on affordable alternatives.

Expensive prices

YOU could end up paying back hundreds of pounds in interest. Three of the UK’s largest pawnbrokers, Cash Converters, Ramsdens and H&T, charge between 118.8% and 119.9% ​​per annum.

Exact code for the first installment of £650 ending up in bank accounts
Exact date: 1.1million families will initially receive a £326 living expenses payment

This means that if you took out a loan of £500 over six months, you would have to pay back £299 in interest or £799 in total at an interest rate of 119.9 per cent.

The loans are far more expensive than those from high street banks but cheaper than payday loans.

Many will list a monthly or daily interest rate, but they should also list the annual interest rate.

Often you can only borrow a percentage of an item. For example, if your ring was worth £200, you may only be able to borrow £100. Sometimes you have to repay the loan in a single installment.

An H&T spokesman said: “We serve customers who cannot raise funds in the traditional bank lending system or who need a short-term, low-value loan to meet an immediate financing need.”

AFFORDABILITY FEAR

Pawnshops do not carry out any credit checks. This can be an advantage if you have bad credit, but it means there are no guarantees to ensure you can afford the loan.

Debt Camel debt adviser Sara Williams said: “Some people find that they’re cashing in on an item but are left with so little money that they’re forced to pawn it back in a couple of weeks.

“A one-time convenience can turn into a long-term nightmare, especially when you’re pawning jewelry with sentimental value.”

A spokesman for the Financial Conduct Authority said: “We reformed the market to help borrowers avoid spiraling into debt and made it clear to lenders that they have to support customers when they’re struggling.

“We will take action when companies fail to meet their commitments.”

IF YOU DO NOT PAY BACK THE LOAN

If you pay back on time, you can get the pledged item back. But you must keep the receipt.

If you lose it and the item costs more than £75 you will have to pay a fee to get a judge or oath commissioner to swear the goods are yours. If you cannot repay the loan, the item will be sold.

Fairer Finance’s James Daley said: “Avoid pawning items of high sentimental value unless you are confident in your ability to repay.”

If your item is resold, you should receive additional money given to the pawnbroker – above what you were offered for it.

James adds: “In the past, pawnbrokers have been bad at reuniting customers with that extra money.

“So if you pawn something and it gets resold, check what it was sold for and chase the money you’re owed.”

CHEAP ALTERNATIVES

If you need to borrow money, look at alternative options. Remember that emergency loans should only be used in extreme circumstances such as: B. to pay a priority bill or if your car breaks down.

If you’re on a low income or have bad credit, you may struggle to qualify for the best lending rates on the high street. Therefore, affordable alternatives are important.

First, try to get free money in the form of grants. If you receive benefits, talk to your work coach about the Home Support Fund. Or ask your municipal administration if they can help you.

Or MoneyAdviceTrust’s Jane Tully suggests: “Credit unions often offer a range of affordable products at cheaper prices, and there is a cap on the amount of interest they can charge.”

If you’re having trouble paying a bill, contact your provider.

Use Turn2Us to search for grants, or speak to End Furniture Poverty if you need furniture or a new fridge freezer, for example.

I'm a barista...the things I'm tired of hearing
Alison Hammond looks slimmer than ever on vacation in a plunging swimsuit

Responsible lenders like Fair For You offer lower-cost loans to help purchase household items. Iceland is giving out £75 of interest-free microcredit in the form of a pre-loaded card to spend in supermarkets.

You can get free debt advice from Citizens Advice, StepChange or National Debtline.

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What are Christmas credits? – Forbes Advisor https://isdepo.com/what-are-christmas-credits-forbes-advisor/ Mon, 22 Aug 2022 15:00:29 +0000 https://isdepo.com/what-are-christmas-credits-forbes-advisor/ Editor’s Note: We earn a commission from affiliate links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. From vacation trips to gifts under the tree, Christmas expenses can add up quickly. If you’re feeling tight on cash, maybe consider a loan to get you through the season. Christmas loans […]]]>

Editor’s Note: We earn a commission from affiliate links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

From vacation trips to gifts under the tree, Christmas expenses can add up quickly. If you’re feeling tight on cash, maybe consider a loan to get you through the season.

Christmas loans are a type of personal loan designed for holiday spending. You can borrow one to pay for gifts, travel, or pretty much any other legal purpose. You get a lump sum upfront, which you pay back over time—usually in fixed monthly payments.

Your loan terms vary by lender. Borrowers with good credit ratings typically qualify for better interest rates and more favorable terms, while borrowers with bad credit ratings may have fewer options or receive higher interest rates.

Christmas loans can be unsecured or secured with collateral. To qualify for an unsecured loan, you usually need good credit and sufficient income. The requirements to get a secured loan are usually more flexible, but you risk losing your collateral if you are unable to repay what you borrowed.

How do Christmas credits work?

You can typically find Christmas loans from online lenders and credit unions. Many banks also offer personal loans, although they don’t call them Christmas loans. Each lender determines its own rates, terms and application process. Because of these differences, it’s a good idea to shop around and compare options.

Some lenders require a minimum credit rating, while others do not check your credit rating at all. However, lenders who do not require a credit check usually charge high interest rates. In fact, these no credit check Christmas loans are essentially payday loans with fees that match interest rates of 400% or more.

In contrast, traditional personal loans typically cap their interest rates at 36%, with some lenders offering rates as low as 4% or 5% to creditworthy borrowers. Even if you are drawn to the fast funding and flexibility of a no credit check Christmas loan, we do not recommend it due to the high cost of borrowing.

How to get a Christmas loan

If you are interested in a Christmas loan, follow these steps:

  1. Check your credit. Before you take out a loan, it is helpful to know what your credit rating is and what your credit report says. The better your credit rating, the more likely you are to get a loan. You can check your creditworthiness for free through various credit monitoring services and get your credit reports through AnnualCreditReport.com
  2. shopping spree. Compare multiple options before choosing a lender so you can find the best rates and terms. You can usually find Christmas loans from online lenders and credit unions. If you wish to borrow from a credit union, remember that you must become a member if you are approved and wish to accept the loan.
  3. Estimate your borrowing costs. Before borrowing, use the Forbes Advisor personal loan calculator to determine your borrowing costs. As mentioned earlier, some Christmas loans are simply payday loans with sky-high interest rates. Check whether the borrowing costs are affordable before taking out a loan.
  4. Check your budget. Christmas loans are usually installment loans that you pay off in fixed monthly installments. Make sure you can afford the monthly payments before you take out a loan so you don’t risk overdraft fees on your bank account or late payments on your loan.
  5. Submit your application. If you have found a suitable loan offer, you can submit an application. You must provide personal information and any documentation required by the lender. The lender may or may not issue a hard loan request, which could temporarily hurt your credit score by a few points.
  6. Stay up to date with payments. If you’re approved for the loan, check when your first payment is due. It may be a good idea to set up automatic payments from your bank account (if the lender hasn’t already done so) so you don’t default. Many lenders offer autopay installment discounts. Make sure you have enough cash in your account to avoid overdraft fees.

How to get Christmas loan with bad credit

Some online lenders offer Christmas loans for bad credit. In fact, certain types of Christmas loans do not require a credit check at all. However, as mentioned earlier, these no credit check loans are likely to be costly.

Additionally, while these loans provide quick and easy-to-obtain emergency financing, they do not provide a long-term financial solution. According to the Consumer Financial Protection Bureau (CFPB), consumers who take out an unpayable payday loan often end up taking another to pay off, thereby falling into a debt trap.

Pros and cons of Christmas loans

Before you get a Christmas loan to cover your holiday expenses, consider these pros and cons:

Benefits of Christmas Loans

  • Fast financing: Some Christmas loan lenders promise financing within 1 business day.
  • Flexible purpose: With a Christmas loan you can cover the costs of gifts, travel or other holiday expenses.
  • Fixed payments and interest: Many Christmas loans have fixed installments and monthly payments, so you don’t have to worry about your bills changing over time.

Disadvantages of Christmas loans

  • Possibly high interest rates: The loan can have high interest costs, which in the long run will make your Christmas expenses much higher than when you bought it.
  • Can be a payday loan: Some online Christmas loans are simply payday loans with a different name. These loans often come with fees equivalent to an annual percentage rate (APR) of 400% or more. Also, a lender may require you to provide your bank account information upfront so they can make automatic withdrawals whether you have enough in your account or not.
  • Could lose collateral: If you opt for a secured Christmas loan and cannot afford to pay it back, you could lose any assets you have pledged as collateral.

Other options for buying Christmas gifts

Because Christmas loans can be expensive, it pays to look for alternatives. Here are some other types of funding to consider:

Buy now, pay later

Buy now, pay later (BNPL) schemes have become increasingly popular in recent years. As the name suggests, BNPL options allow you to buy an item immediately and then pay for it in installments over time.

Some BNPL programs offer 0% interest. You often have to pay 25% of the item price upfront, followed by three additional payments every two weeks. Other BNPL options offer longer repayment terms but may also charge interest.

You may be able to select BNPL at checkout or use a BNPL app to fund your purchases. Be sure to read the terms and conditions before proceeding.

credit cards

Credit cards are another way to cover your Christmas expenses. Keep in mind that credit cards can have a high APR if you don’t pay off your balance in full each month. According to the Federal Reserve, the average APR in May 2022 is 15.13%.

However, you may be able to qualify for a new credit card with a 0% APR promotional period that extends from 12 to 24 months, depending on the card. This means that you can avoid interest costs if you repay your balance before this deadline.

Please note, however, that interest will accrue after the promotional period has expired. Be wary of charging more than you can afford within the timeframe given.

savings

Perhaps the best way to afford the holiday season is to avoid debt altogether. Rather than paying monthly installments for a loan after Christmas, consider setting up automatic transfers from your checking account to a separate holiday savings account in the months leading up to Christmas.

Also, make sure you create a realistic spending plan that fits your budget. If you find yourself exceeding your means, review your budget as a reminder of what you can afford this year. By setting limits upfront, you may be able to get through the holiday season without carrying debt into the new year.

Compare personal loan rates from top lenders

Compare personal loan rates in 2 minutes with Credible.com

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NetCredit Personal Loans Review 2022 https://isdepo.com/netcredit-personal-loans-review-2022/ Fri, 19 Aug 2022 09:54:32 +0000 https://isdepo.com/netcredit-personal-loans-review-2022/ Insider’s experts select the best products and services to help you make wise decisions with your money (here’s how). In some cases we receive a commission from our partners, but our opinion is our own. The conditions apply to the offers listed on this page. The bottom line: NetCredit is a decent option for borrowers […]]]>

Insider’s experts select the best products and services to help you make wise decisions with your money (here’s how). In some cases we receive a commission from our partners, but our opinion is our own. The conditions apply to the offers listed on this page.

NetCredit Personal Loans

fees

Late fees, origination fees depend on your state

Regular APR

34% to 155%, depending on the state

fees

Late fees, origination fees depend on your state

Regular APR

34% to 155%, depending on the state

advantages

  • Low minimum loan amount
  • Fast financing

Disadvantages

  • Low maximum loan amount
  • Significantly high APRs
  • Not available in every state
  • Late Fees
  • origination fees

More information

  • The loan is between $500 and $10,000 or up to $10,500 in CA
  • Credit terms between six and 60 months
  • Loans are not available in CO, CT, DC, IA, MA, MD, ME, NV, NH, NY, NC, PA, VT and WV
  • Customer service available via email and phone

Pros and cons of NetCredit personal loans

Who is NetCredit suitable for?

NetCredit is best for borrowers who want to get a small amount of money quickly and have bad credit. NetCredit has no minimum credit score requirements and states on its website that it considers borrowers with bad credit.

Payments on your personal loan are reported to TransUnion and Experian, which can help improve your credit score when you’re reliable in paying on time.

How to compare NetCredit personal loans

NetCredit, Fig Loans, and OppLoans are slightly cheaper alternatives to payday loans, many of which have interest rates around 400%. However, you still pay a much higher interest rate with these three than you would with a traditional personal lender.

OppLoans terms range from nine months to 24 months depending on which state you live in. Fig has terms ranging from one to six months depending on where you live. NetCredit has the widest range of loan terms from six to 60 months.

None of the three companies have a minimum credit rating to qualify, so they could be a good option for borrowers who have been turned down by other companies due to poor credit histories.

Compare personal loan rates

Is NetCredit trustworthy?

NetCredit is not currently rated by the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB evaluates companies by looking at their responses to customer complaints, honesty in advertising and transparency in business practices.

The BBB investigates a sample of complaints before issuing a rating. Customers have complained that the company has approved credit for them that they did not apply for and performed credit checks on them without applying for credit. Customers also say they could not reach customer service.

In response to these complaints, NetCredit said the unauthorized loan approvals were resolved through its identity theft and fraud verification process. NetCredit pointed to a lack of staffing as a reason for slow customer service times and said it was engaging in “aggressive recruiting and hiring” to solve the problem.

NetCredit has not been involved in recent controversies.

You may not feel comfortable borrowing from NetCredit given a history of customer complaints – but be sure to contact friends and family who may have borrowed from the lender to get a fuller picture of their services.

frequently asked Questions

Is NetCredit a legitimate company?

Yes, NetCredit is a reputable company that has been around for 10 years and has good marks on Trustpilot.

How long does it take for NetCredit to fund a loan?

NetCredit will usually send you money the next business day after your application is approved. In some cases, if you submit your application before 7:00 p.m. Central Time, the lender will send your money on the day your application is approved.

Is NetCredit conducting a tough investigation?

After you are approved for a loan and signed on the dotted line, NetCredit performs a hard loan retrieval that allows the lender to get a comprehensive view of your credit history. This can initially have a negative impact on your creditworthiness. But as long as you make timely and reliable payments, your score should improve over the long term.

How much interest does NetCredit charge?

NetCredit charges between 34% and 155% APR on its loans. Your exact terms will depend on your financial situation and the state in which you live.

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How to Improve Your CIBIL Score to Get Instant Small Loans https://isdepo.com/how-to-improve-your-cibil-score-to-get-instant-small-loans/ Wed, 03 Aug 2022 12:21:19 +0000 https://isdepo.com/how-to-improve-your-cibil-score-to-get-instant-small-loans/ Looking for a way to improve your CIBIL score so you can qualify for instant small loans? Then you are exactly right here. In this blog post, we will discuss some tips to help you improve your credit score and increase your chances of getting a loan. Without doing much, let’s get started. How to […]]]>

Looking for a way to improve your CIBIL score so you can qualify for instant small loans? Then you are exactly right here.

In this blog post, we will discuss some tips to help you improve your credit score and increase your chances of getting a loan. Without doing much, let’s get started.

How to Improve Your Cibil Score to Get Instant Small Loans

1. Pay off outstanding debt

Pay off your loan or debt as soon as possible. This will help you improve your credit score to a great extent and make you eligible for availing loans at lower interest rates.

You can also try to negotiate with your lender to have your name removed from the debtor list. This goes a long way towards improving your score and gaining access to credit on better terms.

2. Limit credit usage

Credit utilization is one of the most critical factors affecting your CIBIL score. It is advisable to keep your credit utilization below 30% to improve your score. You can do this by paying off your debts on time and maintaining a low balance on your credit cards.

It’s also a bad idea not to use your card at all, as doing so may result in your account being terminated. So use your credit card wisely and keep your balance low to improve your CIBIL score.

When looking for a loan, first check your credit rating. A good CIBIL score will help you get better credit terms and lower interest rates. So take steps to improve your score and avail instant loans easily.

3. Avoid multiple debts

Please avoid multiple debts, which will further reduce your creditworthiness. A critical factor affecting your CIBIL score is the number of debts you owe. If you have multiple debts, it will signal to lenders that you are a high-risk borrower.

Therefore, it is important to avoid taking on multiple debts. If you already have debt, focus on paying it off as soon as possible. This will help improve your credit score and make you a more attractive borrower to lenders.

4. Monitor your credit report regularly

Check your credit report at least every now and then. This will give you an idea of ​​where you are and what needs improvement. Reviewing your report will also help you uncover any errors or fraudulent activity.

If you see anything unusual, report it to the appropriate authorities immediately. By regularly tracking your credit report, you can improve your CIBIL score and easily qualify for small loans.

5. Have a broad loan portfolio

A comprehensive loan portfolio is a great way to improve your CIBIL score. They use different types of credit products and use them responsibly. The key is to ensure timely payments and not exceed 30% of your credit limit.

If you don’t have many different types of credit products, don’t worry. You can improve your score even further by maintaining a good payment history and keeping your balances low. Remember that a diversified loan portfolio is one of the critical factors that lenders look for when considering a loan application.

6. Keep a record of your old debts

A history of old debt isn’t always a bad thing. It can help your case when applying for new loans. Lenders will see that you have paid off your debts on time in the past, which works in your favor as you try to get online guaranteed loan approval for instant payday loan and enjoy better terms.

However, it is imperative to keep your old debts so that you can show them to the lender if needed. This way the lender can see that you are a responsible borrower and are more likely to approve your loan.

Conclusion

We all have that time when we need an instant small loan. You don’t have to worry anymore. All you need is a good CIBIL score and you’re good to go. Improve your CIBIL score with the steps above and get an instant small loan today.

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