What Is Better - Cash Today or Late Fees Tomorrow
12:20 AM
No one likes to pay late fees. Late fees are those extra charges on bills that companies like to apply to not only to make sure people pay on time, but to line their pockets for nothing. There are all sorts of reasons that people get charged late fees for, but the most common is just that they didn't have the money to pay it. However, there are options for people that want to pay their bills on time and avoid late fees, but is it better to get cash today or late fees tomorrow?
The following information looks at both cash advance pay day loans and late fees for monthly bills, to give people some information that could help them make the most out of their financial decision.
Cash Advance Payday Loans: These are short-term loans that are provided to people with no credit check, and the cash is deposited directly into their bank account usually on the same day.
How do cash advance loans work? People can get cash advance loans, sometimes referred to as payday loans, on the web or in person with nothing more than a bank account and ID. The loan is secured using a blank check or bank account number and borrower provides the details and grants access to the lender to the borrower's bank account. This is how the lender guarantees that the loan will be paid back. On top of that, the lender charges a fee for the service. Unlike traditional loans, or long term loans, cash advance loans don't charge any interest, but instead have a fee for the service they provide. The fee varies from state to state, and some states have already put caps on the amount the lender can charge for the service, but it's good to check with the local laws before getting a cash advance. Most states have fees that vary between $15 - $25 per $100 borrowed. This means that if a person takes out a $100 cash advance loan, they would need to pay back $115. That's it. A $15 dollar fee for the convenience of having $100 deposited directly in the bank for use usually on the same day. However, the full amount would need to be paid back by the next payday, or within 2 weeks, and thus the reason its called a short term loan. However, for a person that has to pay bills, and the bills charge late fees, paying a $15 fee instead of the late fees doesn't sound so bad, or does it?
How late fees work? Late fees are charged to people when the don't pay their bills on time. Most companies, like credit cards, will charge some sort of late fee, and the fees can range from $10 to as much as $50. Most credit companies will charge between $25 - $40, and they don't care what the balance of the account is or the amount due on the bill. This means that even if the amount owed is only $25 and a person pays late, the credit companies will still charge the same late fee. In addition, if a person has a couple of these types of accounts due and doesn't have the money to pay them, they will be charge several late fees that could total as much as $100 or more. In addition, they still need to pay their bill that is due, but is now due at more money. Plus, when a person is near their credit limit, and they pay late, the credit company charges the late fee on top of their balance, and if the fee puts the account over the limit then the person will be charged an over the limit fee as well. This means that not paying a $25 bill on a credit card could result in a $40 late fee, plus a $40 over the limit fee, for a total of $105. Now, the next bill comes due and they have to pay the $105 plus the next month's bill of $25, for a grand total of $130.
Looking at these two situations, the people who pay the late fees haven't gotten anything from the cash they paid. Instead, they are paying $80 in fees, and $50 in balance payments, whereas with a pay day loan they would get $100 upfront to do what they want. The person can pay their $25 bill, saving them $80, and still have $75 dollars in their pocket for some fun until the next pay day.
Another big advantage between cash advances and late fees is the credit history. If a person doesn't pay their bills on time it will give them negative credit marks, making it harder for them to get good financing in the future. Whereas, a payday loan doesn't go on credit report and the person is able to pay their bills on time keeping their credit history in tact. Even if a person doesn't pay back their payday loan on time, they will be charged additional fees, but it won't effect their credit report or even show up on their credit history, versus a credit card late notice which does impacts a person's credit score.
If people have to decide between getting a cash advance today or paying late fees tomorrow, the better choice would be to get the cash today and start paying bills. Credit history is not something to mess around with and not paying bills is the worst thing a person can do to their credit. In addition, the late fees charged are enough to put a person further into debt as they try to make their bills and keep up on the late fees.
Don't wait till it's too late, get a cash advance pay day loan today and pay the bills on time instead of paying late fees. Your credit score will reward you for doing it.
The following information looks at both cash advance pay day loans and late fees for monthly bills, to give people some information that could help them make the most out of their financial decision.
Cash Advance Payday Loans: These are short-term loans that are provided to people with no credit check, and the cash is deposited directly into their bank account usually on the same day.
How do cash advance loans work? People can get cash advance loans, sometimes referred to as payday loans, on the web or in person with nothing more than a bank account and ID. The loan is secured using a blank check or bank account number and borrower provides the details and grants access to the lender to the borrower's bank account. This is how the lender guarantees that the loan will be paid back. On top of that, the lender charges a fee for the service. Unlike traditional loans, or long term loans, cash advance loans don't charge any interest, but instead have a fee for the service they provide. The fee varies from state to state, and some states have already put caps on the amount the lender can charge for the service, but it's good to check with the local laws before getting a cash advance. Most states have fees that vary between $15 - $25 per $100 borrowed. This means that if a person takes out a $100 cash advance loan, they would need to pay back $115. That's it. A $15 dollar fee for the convenience of having $100 deposited directly in the bank for use usually on the same day. However, the full amount would need to be paid back by the next payday, or within 2 weeks, and thus the reason its called a short term loan. However, for a person that has to pay bills, and the bills charge late fees, paying a $15 fee instead of the late fees doesn't sound so bad, or does it?
How late fees work? Late fees are charged to people when the don't pay their bills on time. Most companies, like credit cards, will charge some sort of late fee, and the fees can range from $10 to as much as $50. Most credit companies will charge between $25 - $40, and they don't care what the balance of the account is or the amount due on the bill. This means that even if the amount owed is only $25 and a person pays late, the credit companies will still charge the same late fee. In addition, if a person has a couple of these types of accounts due and doesn't have the money to pay them, they will be charge several late fees that could total as much as $100 or more. In addition, they still need to pay their bill that is due, but is now due at more money. Plus, when a person is near their credit limit, and they pay late, the credit company charges the late fee on top of their balance, and if the fee puts the account over the limit then the person will be charged an over the limit fee as well. This means that not paying a $25 bill on a credit card could result in a $40 late fee, plus a $40 over the limit fee, for a total of $105. Now, the next bill comes due and they have to pay the $105 plus the next month's bill of $25, for a grand total of $130.
Looking at these two situations, the people who pay the late fees haven't gotten anything from the cash they paid. Instead, they are paying $80 in fees, and $50 in balance payments, whereas with a pay day loan they would get $100 upfront to do what they want. The person can pay their $25 bill, saving them $80, and still have $75 dollars in their pocket for some fun until the next pay day.
Another big advantage between cash advances and late fees is the credit history. If a person doesn't pay their bills on time it will give them negative credit marks, making it harder for them to get good financing in the future. Whereas, a payday loan doesn't go on credit report and the person is able to pay their bills on time keeping their credit history in tact. Even if a person doesn't pay back their payday loan on time, they will be charged additional fees, but it won't effect their credit report or even show up on their credit history, versus a credit card late notice which does impacts a person's credit score.
If people have to decide between getting a cash advance today or paying late fees tomorrow, the better choice would be to get the cash today and start paying bills. Credit history is not something to mess around with and not paying bills is the worst thing a person can do to their credit. In addition, the late fees charged are enough to put a person further into debt as they try to make their bills and keep up on the late fees.
Don't wait till it's too late, get a cash advance pay day loan today and pay the bills on time instead of paying late fees. Your credit score will reward you for doing it.
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