Wells Fargo has entered the payday loan business and the bank is now one of many taking such action. Bank of America, Wachovia and JP Morgan Chase are a few of the other big name banks to enter the payday loan business along with Wells Fargo.

What is a payday loan?

A payday loan is a way of obtaining a short term cash advance, generally ranging in amount from a low of 300 to a high of 1,500 to cover unexpected bills when you run short of cash. A payday loan is an unsecured advance meaning that theres no need to put up your home or any other asset as collateral. Repayment is dependent upon the amount of the loan being automatically drawn from the recipients bank account on the date that it is due. They are called payday loans because in order to get one you need steady employment and have your paycheck directly deposited to your bank. They are short-term loans because repayment generally happens two weeks after the funds are advanced, coinciding with your payday schedule.

The application process is fast and convenient and all transactions happen electronically and automatically. Thats why payday loans make sense for many situations. And because there are no restrictions on the way the funds can be utilized, people use the money for any reason. Some people need a payday loan to cover emergency automobile repairs or to make credit card payments to avoid paying a late fee. Other people use the funds to cover unexpected medical expenses and some even use the money to pay for trips that they need to take.

Wells Fargo entered into the payday loan business because it understands the need for this type of short-term cash advance arrangement. The bank itself offers loans to its customers through its ATMs, online, and in their branches.

Payday loans werent even invented back in the days when Wells Fargo moved money across the Wild West in stagecoaches. Long the target of Jesse James and Frank Dalton and other bank robbers of the era, Wells Fargo has survived and flourished to become the best known brand in consumers banking and, soon, in direct deposit cash advances for consumers.

You dont have to worry when you borrow money from an established payday loan provider. Most of the big payday loan companies are licensed by the government agency that regulates the payday loan industry in the state in which the lender is licensed to operate. So go ahead if you need the money, contact a payday loan provider. Wells Fargo feels confident entering the payday loan business and you should too!

Car loans are certainly less costly than home mortgages, student loans, or other kinds of loans. So why do so many people end up defaulting and losing their cars? Find out these hidden dangers:
Biggest Hidden Car Loan Danger: The Inherent Money Pit

Unlike home mortgages, student loans or other big-ticket loans, car loans are inherently money pits. A house can build equity; higher education can increase earning potential; even jewelry can sometimes be re-sold for as much as was paid for it. If you borrow to buy one of those things, you may eventually get a return on investment. But every single car loses significant value and keeps losing it as time goes by.

Solution: spend as little on your car as possible.

Of course, in order to spend as little as possible over the life of the vehicle, you need to get a well-made, fuel-efficient car, rather than the one with the lowest price on the windshield.

But a pickup truck, SUV, sports car, or “luxury” model is a guaranteed money-loser. Dont worry about what other people will think. Think about it: when was the last time you saw an expensive automobile and thought, “I really like and respect whoever owns that!”

The best buy? Many economists actually recommend buying a used car that’s a year or two old. That way you can actually benefit from the fact that cars only drop in value. Even a car thats just six months old may offer you a substantial savings. Just have it inspected thoroughly so you don’t lose what you’ve saved on maintenance payments.
Hidden Car Loans Danger: Dangerously High Monthly Payments

Unfortunately, most people never figure out the total cost before signing on the dotted line. They end up staying up late at night trying to figure out how to make ends meet. They live in smaller houses. They skip going out at night. They dont go on vacation.

All that sacrifice to have a brand-new SUV in the driveway!

Take a hard look at your finances, and figure out how much you can pay total each month for your car. Be sure to take into account insurance, tax, maintenance, and fuel. Usually, when people actually do calculate the total monthly cost of the car theyre considering buying, theyre amazed by how high it is.
How Much Car Debt Can You Afford?

1) Make a list of your average monthly non-car expenses, and subtract them from your earnings.

your monthly after-income-tax income

any other taxes

housing (including any fees and property taxes, and utilities)

food

health insurance or HMO

life insurance

debt payments

401 (k), IRA, or other long-term savings

short-term savings

telephone, cellular phone, cable, internet, etc.

entertainment and fun stuff (be honest!)

cost of yearly vacation(s) divided by 12

other expenses

what you can spend on a car

2) Subtract your monthly car-related expenses from the amount you have left over from your other expenses.

What you can spend on a car (from above)

Amount youre spending per month on gas (raise or lower this figure depending on whether you are getting a car with higher or lower gas mileage).
Monthly maintenance (remember: your new car wont stay new long, so maintenance will be an issue).

Monthly insurance (remember that for a new car, your insurance premiums may go up).

Tax.

Maximum monthly loan payment.

Now plug the number above into a vehicle loan rate calculator to figure out big of a car loan, and how much interest you can afford.
Final Hidden Auto Loan Danger: Unnecessarily High Rates

If you simply take the first loan the dealer offers you, you are probably paying too much. Do some comparison shopping on the internet, and bring a list of the best loans with you when you negotiate loan terms with the dealer.

Dont let the dealer cheat you by shifting the cost from the car loan to the car price to the deal on your trade-in. Make sure you get a good deal overall.

Congratulations! You now are far better prepared to stay out of an auto loan money pit than the vast majority of car buyers.

Student Loans

For many students, the dream of getting a higher education just isnt possible without the financial aid of a student loan. Fortunately, there are many opportunities out there to apply for and receive a student loan. And even better, http:bills.com is here to give you all the knowledge you need to choose the best student loan for you.

Student loans generally come from two sources: the federal government and private financial institutions, such as banks. Both require repayment of the loan, but thats where the similarities end. Lets take a look at both federal and private student loans.

Federal student loans are sponsored by the government and account for the biggest chunk of education loans. There are three main federal loan programs: The Perkins Loan, The Stafford Loan, and The Parent Loan For Undergraduate Students, also known as PLUS.

The Perkins Loan is the most affordable student loan, with an interest rate of 5% and low fees. But its also the hardest to get because its only given to those who need it the most. And the loan limit, at 4000, is the lowest of all three federal student loans.

The Stafford Loan comes with a variable interest rate thats higher than the Perkins, but lower than the PLUS Loan, due to the cap at 8.25%. As with the Perkins Loan, this student loan does not hold credit worthiness against the applicant. The Stafford Loan also has a much higher loan limit and is offered to both graduate and undergraduate students.

Compared to the Perkins and Stafford Student Loans, which are borrowed in the students name, the PLUS Loan is completely different in that it is a loan for parents of dependent undergraduate students. A big advantage of this type of student loan is that it covers any remaining balance not covered by other forms of aid in essence the loan limit covers your entire educational expense.

Now that weve familiarized ourselves with the different types of federal student loans, lets identify the attributes of a private student loan. This is a loan from a financial institution that takes into account your creditworthiness, not your need for aid. Your credit is reviewed by lenders and if approved, you can get a substantial size student loan in minutes, sometimes up to 30,000. A downside to private student loans is that repayment terms typically cap at 15 years, compared to 30 years for a federal loan. Also, if you become disabled or deceased, your heirs are required to payoff your student loan, whereas in a federal loan, the loan is forgiven, making repayment unnecessary.

As you can see, you have several choices when it comes to student loans. Making sure you choose the best option is a matter of getting informed on these choices, and picking to student loan that best fits your needs.

Student loans are different than most other loans. You will find that as a student, you are more likely to be given credit even if you are a risk. If you go online and you search for a student car loan, there will be an offer from practically every creditor. The only thing is that students pay a high interest rate because they are considered to be a high risk. You will not only be charged a high interest, but they take advantage of the student by adding fees and everything. You need to watch when you are signing a student loan, because not only may you end up paying a bill that you can’t afford, but you may ruin your credit rating.

When it comes to student car loans you can take one out on the basis of the fact that you are a student from most creditors, or you can use your student loans to help finance your car. The only problem that can be find by using your student loan money is because you will end up having to pay the money back six months after you graduate, but it comes with a very high monthly payment and interest.

The thing with using your student loans is that it is legal to use the money for a car or gas, but you have to pay that money plus your other loans back all at once. If you do use your student loans to finance a car, you need to make sure that you consolidate all your debt into one payment so that you don’t get confused on what you’ve paid and what you haven’t monthly.

The best option for college students is that you go to a creditor and you ask for a student car loan. They will give you high interest, but you know what you will pay each month and what is expected from you.

You may end up getting a five-year loan, but if you use your student money and grants then you have like a mortgage that will give you high interest rates and it can be harder for you to trade in the car or pay it off. When you go for your student car loan, you will need a co-signer. You should get one of your parents to sign for you so that you can get the credit and the car without worries. If you do your research you should be able to find an appropriate loan and with a reasonable interest rate, which is your goal at hand.

For some people, the idea of getting a payday loan is still a strange prospect it might even be a little scary. With some of the news stories about instant loans circulating the media, warning consumers about the pitfalls of fast cash advances, applying for one may not seem like a good plan if you find yourself in a financial bind.

But in many instances, a payday loan can be an excellent way to obtain cash quickly, especially in an emergency situation. Not everything in life is planned you may suddenly have to pay a large car repair bill, or any other unexpected expense. If you dont own a credit card, or have already maxed it out, and dont want to burden friends or family with a request for money, the only option you really have left is an overnight cash advance.

A payday loan is a small short-term loan (usually in the amount of 100-1500) that has a high interest rate. It allows you to access cash, usually overnight, before your next payday, which is much faster than a traditional loan from a bank. And its easier to be approved for cash advance loans you can even apply for one online. You dont have to go through a credit check, the process is discreet, and the transaction is secure. And if you have no credit, or bad credit, this wont affect your ability to obtain a payday loan. Its no wonder payday loans are growing in popularity.

Although you have to pay a fee to take out a cash advance, in some circumstances getting your hands on much needed funds, almost instantly, is worthwhile, as long as you know your next paycheck will be able to cover the loan right away.

Of course, just like with any other loan, its important to realize that you should only apply for a payday loan if you plan to pay it back with your next paycheck. That is the purpose of a payday loan to advance you the money you need before you get paid. Dont go into the process with the intention of renewing the loan.

Most of the controversy surrounding payday loans is entirely unwarranted. Ultimately, a payday loan company provides a service that is needed in the community, and when used responsibly for its intended purposes, it can really help people get out of sticky situations.

If you plan on getting a cash advance, just follow a simple rule to avoid running into unwanted problems: apply for one from a reputable company that wont gouge you for all you have (or dont have). If you take advantage of a cash advance loan, pay the loan back by your next payday, so more interest charges wont accumulate.

Payday loans can be an effective way to access cash quickly, at times when you need it most. As long as you plan to use the service the way its meant to be, and avoid companies that dont cater well to their customers needs, it might just be the best thing for you.