The Truth Behind Payday Loans

A lot is being said about payday loans. Many say that the interest rate of payday loans is absurd. Others agree that they are the only possible source of funds for those who haven’t got a perfect credit history. We can’t but agree with both claims, but there’s something else you should know talking about payday loans.

A simple concept

The original idea of a payday loan which still remains in some cases is to lend a small sum of money which usually equals to half of the applicant’s wage for a short period of time (till payday), at the end of the term the borrower is to pay back the money plus a fee or an amount of interests. When payday loans first appeared in financial industry they filled the gap that wasn’t covered by any financial product.

A payday loan turned out to be an easy and quick solution to a temporary problem with money. It took too much time to get a personal loan approved because of thorough credit examinations. The concept was very simple: small amount of money, short term, and quick approval.

How do payday loan providers benefit from such small amounts? It’s very simple, the interest rate is high. The high percentage of return also became an explanation for high risk implied for the lender. As there is no credit checks the loan is unsecured, that means that there is not any guarantee other than customer’s salary that the borrower is going to pay back the loan.


lets keep a heat on people who don’t get it!

if we become acting like avon lady’s we will become avon lady’s,!!! what next topperware party? , lets do mortgage on your kitchen table!? whata trivial and lame way to conduct business, Ester , you need to go away and learn. i have also own my own firm and yes it takes a lot of work and money to make it work on the professional level, what we all should have! we getting a rep. like a used car salesmen, thaks to all this overnight experts so called “loan officers”. if you have no experience you should not work alone , never mind from home. you need a long time of a hand holding if you have intelligence, to see that. go over your personal finances and personal information in a public restaurant, between salad and a few drink?… what a way to go!!!!
Ester you signature say “manager”!? i think you need to be managed for a long time to come , before do some demage for some smack who listen to you! this is not a game, or some light lifting. this business deserve all effort, to weed out the” green pea “, who just out there alone wondering and harming people, and get us in the trouble , so the congress will have a field day to make our life difficult, and cut our income , because of people who “like to work from home” ect ect. our clients deserve better so are we ‘who like to stay and prosper in this industry for a little longer.


where to get financing

I have a customer who buys, sells and manages real estate for a living. he owns over 50 units which he does not qualify for conventional mortgage financing. He wants to buy a condo w/25% dn for investment, where do i get financing or how?


Mortgage Without Pay History

Hello. This is Tim Smith in Ohio. I have a client (residential) that is 3 x 60 on mortgage in past 12 mos and has a 2nd that noone can produce any pay history. The first mort is w/finance co. and is taking a huge settlement. The 2nd will also take a payoff short. However, I need 75% LTV and property is rural. I possibly can do at 70%LTV. Everyone I have spoken with says We need 2nd pay history of some kind or copy of note stating none due. We can’t produce either. Please help!!