Is Applying for Payday Loan Online Safe?

If you need cash to pay off a small amount of debt then the easiest loan to apply for is a payday loan. Luckily, getting a payday loan online is not only easy but quick as well. If you need to pay an abrupt expense then you can log in a site and apply for a payday loan. However, security is a big question in applying for these instant cash loans in the internet.

Getting payday loans online can be safe, but it still ultimately depends on what company you are applying from. Many of companies would be very vigilant in keeping their data secured and would spend a lot of money to ensure that their business’ files are well kept and secured. But every borrower should be careful of a lending company that does not take security very seriously. If you want to know if the financial company you are applying for a payday loan is safe just be wary of the following things:

First, always look at the company’s Privacy Policy for their site. This would tell an applicant what information the company needs to collect, and if these information could be seen or viewed by other people.

Second, ask questions to a customer service representative about their site. Ask about the security measures they are taking and ask who has the overall authority in viewing the database and ask what happens to your information once you close your account with the company.

Third, check the applications of the site if it also safe. There should be a letter “s” after the “http” of the website address to determine if the site is secure. The website name should also have a yellow padlock symbol at the bottom right of the title page of your browser. These are indications that the site is encrypted and that it is has a secured system in transporting information to and fro.

Finally, if you are still not sure about the security of the site you have to investigate the company yourself. Search their company name in Google and check it with the Better Business Bureau. If the company does not have any customer complaints then probably they are worth a shot.

The Difference Between Good and Bad Credit

It may sound unfair but the truth is, people with different credit standing are treated differently. For the most part, those with good credit are treated better than those with bad credit.

Individuals with good credit standing are offered store cards and credit cards without any interest on their payback. They may also be approved with car and home loans with a minimal interest of about 3%. Minimal or no interest at all translates to extra savings.

In the meantime, people with bad credit are faced with a different scenario. They are either rejected or charged with very high interest when they apply for loans or credit cards. In effect, they end up paying double the amount of their purchase.

One’s credit rating does not depend on the amount of income generated. A person with a very high income and some extra savings may still be turned down or required to pay high amounts of interest if his credit standing is not satisfactory. In the same way, someone who is not earning a lot but has an excellent credit rating may easily get a loan without making any initial payment or even paying any interest.

What all these simply means is that your credit rating is equally important than the amount of money you are making. Bear in mind that you will not be able to put your money to good use if your credit ranking is low. The worst part is, even with a high salary, you will be putting plenty of your money to waste just to afford high ticket items such as a car or a house.

Credit rating otherwise called FICO score is determined by three major credit agencies namely Experian, Equifax and Transunion. Your rating can fall within 250 to 900. Any score lower than 640 is considered fair while a rating below 600 is deemed poor. If you are aiming for good credit, obtain a score in the mid-600 or low-700. For an excellent rating, get at least a mid-700 ranking.

The Hidden Agenda of Extended Free Transfer Rates

More and more no interest charged credit card offers are sprouting like mushrooms in the present. However, customers should be wary because as more offers like these pop out, the higher covert fees and expense fees, which are attached to the cards, are becoming too.

In perspective, customers look like they are having a great deal compared to the credit card deals in the past because the interests of the cards are free and the balance transfers have increased.However, this is really not the case; in fact credit card owners are paying more for deals nowadays through hidden balance transfer fees and high standard interests.

According to watchdog, back in 2009, 16 months was the longest that a credit card does not charge any interest. But now, in 2012 the longest that major banks deal is 22 months and among these cards are the Barclaycard Platinum Credit Card with Extended Balance Transfer and the Halifax Balance Transfer Card.

But back in 2009, the most you have to pay for debt fees is 3% in 2012 it has increased to 4%. The Mastercard offered by the Amazon.co.uk even charges 5% from its customers as a transferring balance fee.

Consumers should be wary about the interest rates that their credit cards charge them and not merely look at how long transfer rates are extended. For instance, the Barclaycard Platinum Credit Card only charges a 2.05% fee. This is much lesser than the 3.5% charge of Halifax.

The periods that interest rates are free can extend from 16 months to 18 months. RBS and Natwest offer the longest interest rate free deals at the moment. Others that offer 16 months are the Tesco Clubcard Credit Card, the American Express Platinum Cashback Purchase Card and the American Express Rewards Credit Card.

But then, these companies are finding ways to silently make up for the extended free transfer rates that it offers customers. According to the Bank of England, the APR (annual Percent Rate) of the interest that credit cards generate has grown to 17.3 compared to the 16.5 back on May 2010.

Bankruptcy Scores: Another Measure of Credit-worthiness

According to experts, another way for lenders and credit-card issuers to estimate the ability of applicants to pay their debts is through their bankruptcy score. Your bankruptcy score determines your possibility, as a potential borrower, to file for a bankruptcy.

Sylvia Bronner, spokesperson of Citizens, said that a bankruptcy score is one of the many factors that are considered to assess the credit-worthiness of a borrower. Citizens not only use the credit scores of borrowers but also their bankruptcy scores to aid in the decision of what loan to give and to decide whether or not to issue credit cards.

Anthony Sprauve, spokesperson for Fair Isaac Corp. (Fico), said that a bankruptcy score is an instrument for lenders to distinguish borrowers who have a high probability of bankruptcy. Fico is the top third-party provider of credit, bankruptcy and other scoring systems.

In addition, Sprauve said that over 90 of the nation’s 100 biggest banks use the Fico scores.

Similar to a credit score, a bankruptcy score provides an assessment of a loan applicant’s payment and delinquency history, credit amounts, number and types of credit, and so on. However, a larger weight is given to the current debt load of the applicant.

Based on information from finance experts, bankruptcy scores have been present for more or less 20 years already, but it is usually hid from consumers’ view.

According to Scott Dressler, associate professor of economics at Villanova School of Business, depending on who produces the bankruptcy score, it may have a scale from 1 to 800 or from 50 to 950 or from 1 to 300. The higher the bankruptcy score, the more credit-worthy the applicant is.

Barry Robinson, executive vice president of consumer banking said that bankruptcy score are usually used by bigger lenders who make automated, less judgmental decisions and by credit card companies who handle a large scale of unsecured credit.

Tips on How to Dispute Errors on Your Credit Report

Your credit score determines the terms on your mortgage, auto loans, or credit card. Any erroneous information will either result to rejection of your application or a higher interest rate. It is important to take corrective actions about these errors and the following are some tips on how to do so.

If you discover an error, the first thing you should do is to determine its degree of seriousness. Examples of serious errors are credit accounts you never opened, and overdue payments or bankruptcy you never had.

Next, if the error is serious, file a dispute with the credit reporting agency. Moreover, if there are errors on more than one of your credit reports, then file a dispute with every credit reporting agency. You can file a dispute either online or by mail.

According to credit experts, while online is the easiest, it is not the best way, particularly if the error is recurring. If you choose to file online, you should classify your dispute by picking from a pull-down menu and not given the chance to provide an explanation. In contrast, filing in writing allows you to explain the whole situation and also attach copies of supporting documents.

The credit reporting agency then investigates by asking the creditors whether the erroneous information is correct or not, generally within a period of 30 days. If the information is confirmed to be erroneous or the creditor fails to respond within the given period, then it will be removed on all your credit reports.

However, if your efforts failed, you can try filing a dispute again directly with the creditor. Most of the time, creditors are responsible for the errors in the credit reports and not the bureau.

Your last option would probably be to hire an attorney, especially if you cannot persuade the creditor to amend the error.