#payday cash loans
Getting Approved for a Loan of $3000 From a Conventional Lender Normal Banks
There is another way to borrow 3000 dollars too, and this is from conventional lenders. In years past, long before the coming of payday loan and cash advance providers, consumers could only take out small personal loans from regular (conventional normal) banks. Generally speaking, banks don t lend out less than $5000 at one time, because the APR they charge on their loans in less, and they have to lend out at least that much to make it worth their while.
Normal banks always need some form of security or collateral before they will approve a small cash loan too. They demand that the borrower has a fairly good credit rating as well. With these two factors in play, it could be (can be) very difficult for applicants who don t have good credit ratings and scores to get approved. If you don t have collateral in the form of a good vehicle, boat, or home equity, you won t be approved.
This is why the whole cash advance industry took off. Cash advance lenders take full advantage of borrowers who don t have security to offer on the note. Unsecured, small, personal loans carry with them high fees and interest because they are considered to be high risk loan.
Below is a typical advertisement that a conventional bank would use.
Breaking Down a $3000 Dollar Cash Advance Payday Loan Different Fees and APR
Not all cash advance payday loan stores, and shops, charge the same APR. The interest rates on these high risk, unsecured loan products vary depending on what State and Country you are borrowing in, and the fee structures vary depending on the venue and medium of lending you choose.
$3000 Cash Advance Payday Loans APR With Storefront Cash Advance Providers
If you take out a cash advance at your local check cashing store, or pawn shop, you are walking in off the street and they provide their service to you while seeing you in the flesh. They see a real live person, they know where you live, where you work, and can track you down if need be for repayment.
They get your personal information, and see first had your paper check, your latest paycheck stub, your street address of residence, and the street address of your employer. They know where job is and they have phone numbers for you everywhere. They feel that lending to you is not quite as risky as lending to a seemingly anonymous applicant/borrower/customer/client procured via the Internet.
Because of all these above mentioned, these storefront based, walk-in cash advance providers generally charge less of an APR on your loan than what an online borrower would be charge. Keep in mind though it s still a very expensive lending product regardless just not AS expensive as borrowing online.
Below is a typical Internet cash advance ad.
Check Cashing $3000 Dollar Payday Advance Lenders Online AND Storefront
Then there are the middle of road PDL companies. These are the cash advance outfits that provide lending online, and with a storefront street address location. This is usually the most common kind of PDL corporation.
They have the typical storefront locations all over the country if they are a Nationwide lender, or they re a locally owned company they will have one loan shop or a hand full of loan shops located strategically throughout the city, but they also have vibrant web sites that get local or national Internet traffic. This is when it can get interesting!
In some cases, these dual lending type lenders will charge different interest rates and fees on their small personal loans depending of the method of lending used. They ll charge a higher APR for loans procured from their Internet application forms, and they will charge a lesser rate for loans approved from their storefront.
This can be for two different reasons.
One is that the payday lending laws in their State stipulates what they can charge online, and what they can charge street level . Two is that the different rates are self imposed to mitigate risk. Like I said above, they consider online borrowers to be riskier than street level borrowers.
100% Online Internet Based $3000 Cash Advance Payday Loans
Then we have the Wild Wild West lenders who ONLY except loan applications, approve apps, process apps, and administer funds via their web sites. This is the highest risk lending you can get in the cash advance payday loan industry. The rates are astronomical, and the high risk is endured on both ends of the business risky for the borrowers because of the penalty fees, APR, opening and closing fees, and roll over costs. Risky for the lenders because of loan skipping (an illegal practice by dishonest people who borrow money online and leave the town, State some of these criminals set up phony addresses, names, and jobs in an effort to dupe lenders out of their money).
A higher percentage of borrowers rip off online lenders than storefront, street level lenders.
What a $3000 Cash Advance Loan Will Cost You Direct Lending
OK we re not quite done yet. We need to explain how much these different types of lending venues normally cost you when you borrow some quick cash. You are paying a price to get your loan fast (just in case you didn t fully get that yet).
Cost of Borrowing With Storefront Street Level Cash Advance Proprietor
When you borrow 3000 dollars from a local Mom and Pop cash advance lender, you will (depending your State of residence) likely be paying a lower APR and fee on the advance. I will break down the APR cost of a $3000 advance at an average national rate. You might want to pay special attention to numbers you are about to read. Make a mental note of these fees and APR so that you may think twice before taking out a cash advance with one of these lenders.
Storefront Cash Advance for $3000 $10 Fee Per $100 Borrowed
So your a paying 100 dollars for very $1000 borrowed, so your total cost for a 3 thousand dollar cash advance would be $300. Outrageous, but it gets worse than that. Wait for it.
Online Cash Advance for $3000 $30 Fee Per $100 Borrowed
Now you are deep, deep, deep, down in loan shark waters. You are paying 30 dollars for every $100 borrowed over a period of 1 week, 2 weeks, 3 weeks, or a month. The fee you pay on a $3000 advance is will be 30/100, 300/1000, and 900/3000. Yep you got it $900 dollars for a short loan like this. This results in you paying back the lender $3900 and you had better never give them a check goes NSF (defaults). God forbid if you let a loan like this roll over .
Cash Advance Payday Loan Alernative Consider a Personal Line of Credit
So depending on the State you live in, these numbers will vary, but if you are a borrower who has an unfortunate credit rating, then you should try to get a different form of credit. Some banks (maybe the one you have accounts with now) will approve you for a small line of credit for $3000. Some banks will consider and/or qualify you for an LOC of this size. The interest is MUCH less. Your risk is much less.
I hope this helps you understand the costs associated with borrowing $3000 the hard way , as apposed to protecting your credit rating and being able to borrow from a conventional bank, private lender, or credit union.
Footnote: Borrowing $3000 dollars is a tough thing to do with a bad credit rating. You likely can t get a normal bank to lend you the cash, and most high fee cash advance payday lenders don t lend $3000 in a lump sum. They are usually limited by State Law on the max they can lend at one time. Check out this blog post showing some of the different payday laws State by State. (if I don t get the TB the link is gone ;-))
Disclaimer . The views expressed by this author don’t necessarily reflect the opinions of Lazerloan.com, it’s owners, or it’s affliates.
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