Top Rated Bad Credit Loans

Making the Most Out of Bad Credit Loans

Money is a problem for many these days, and online bad credit loans are becoming more popular as a way to pay for unexpected and costly financial situations. No credit check bad credit loans such as payday loans are mostly used by people who cannot afford to pay for unexpected bills or utility repairs, and with no credit check bad credit loans that much needed cash can be transferred into the bank in next to no time.

How Do Bad Credit Loans Work?

Unlike regular loans, bad credit loans give you a fixed cash sum from a few hundred dollars up to a few thousand, which you pay back with your next paycheck, and attach a relatively high rate of interest which you pay on top of what you borrowed. The availability of bad credit loans is very high. Bad credit loan lenders perform no thorough credit check so almost anyone can apply.

The Best Bad Credit Loans

It always helps to be careful when choosing between online bad credit loans lenders, because not all of them are reliable or consumer-friendly. The best online bad credit loan lenders offer affordable interest rates and around the clock customer service. Online bad credit loans are designed to help you, and you can benefit as long as you are sensible.

Fewer Families are Ready for Private Universities

Survey shows that more and more families are shying away from private colleges. Apparently, the current cost of tuition is too high for the average American household to afford without financial aid. This is despite the fact that salary has gone up; thereby boosting consumer spending and helping the economy.

Students’ Choice vs. Tuition Cost

According to a study done in North Carolina, about 40% of the entire college population would have been qualified to attend selective colleges. However, none of them did and instead settled on a college that would meet their financial requirements.

Top schools in America continue to have an application process that is blind to the needs of students. This means that despite your need and qualifications to get education from a top university, if you don’t have the mean you will not be able to. Hence, the 40% of supposedly qualified students are forced to enroll in places with smaller endowments but are less costly.

While college financial aid and merit-based scholarships still exist, they are normally offered to students with the lowest incomes. This what worries the average working-class families.

The study concludes that these days, money is the number one factor for deciding which college to attend. While it is possible to get student loans just to attend your college of choice, experts say that it is too risky. In many cases, students had to spend the next ten or twenty years working to pay for the student loans incurred during college.

Universities Admit Middle-Class Getting the Least Attention

An admission director at Pomona College openly admits that the middle-class are getting the least attention. These are the families whose annual income exceeds the maximum accepted to qualify for financial help. However, there are the same families who cannot afford the high cost of tuition in private universities.

In the current state of the economy, students have one goal the moment they enter college and that is to graduate and get a job. That’s quite a long time before they get to earn. But with the high cost of tuition and the current treatment middle-class families are getting, nearly half of American students drop out even before getting their degrees. This is information based on the study from Harvard.

In order to better the chances of enrollment, there is a lot of work to be done. Student loans are essential tools but they should come with lower interest rates. Universities need to create better programs for middle-class families. After all, the future of the US economy depends on its graduates.

Big US banks finance bad credit loan industry, reports say

While many believe that the economic crisis has made lending a whole lot tighter these days, there is no shortage of funds among lenders of bad credit loans, making this particular type of loans a lot more accessible for credit consumers. This is according to a report from the National People’s Action and the Public Accountability Initiative.

The report, dubbed “The Predators Creditors,” reveals that the bad credit loan industry is backed by the biggest banks and financial institutions in the US, and is in fact the reason why the industry of bad credit loans, more commonly known as payday loans, has experienced an unprecedented growth since its launch. The continuous financing of these banks has also fuelled the growth of the industry.

Wells Fargo & Co, the Bank of America Corp, and JP Morgan Chase & Co. are three of the largest banks in the US reported to have lent support to the industry of bad credit loans. According to a report by Nathaniel Popper of the LA Times, “Major banks led by Wells Fargo & Co, US Bancorp and JP Morgan Chase & Co. provide more than $2.5 billion in credit to large payday lenders.” Along with the financing that these banks provide to the industry, it is also reported that they have started to offer loans that resemble bad credit loans, offering high-interest loans on their own. In particular, the new, short-term, checking advance loans offered by banks can have interest rates of as high as 120%.

Consumer groups have continued to attack the industry, saying that taking out payday loans only lead credit consumers to a financial trap that can be difficult to get out of. The coauthor of the said report and Public Accountability Initiative director, Kevin Connor, said “Not having financing would shut the big players down.”

Bad Credit Loan Industry Seen to Grow

But while continuously attacked by various groups, payday loans remain a great choice for credit consumers. Steven Schlein, Community Financial Services Association spokesman, slams reports about the misleading relationship between banks and payday lenders, saying that “[p]ayday loans companies are in fact good creditors because their customers are good creditors. He adds, “Payday loans are a valuable service to millions of American consumers that have short-term financial needs.”

With billions of dollars of financing offered by these giant banks, there is no wonder why the industry is booming, and is thus anticipated to expand in the coming years. And in response to all the negative, and probably misleading, write-ups and reports about the industry, government agencies have started to initiate rules and regulations, such as the provision of a national cap on payday loan interest rates, in order to protect consumers of bad credit loans.

Wells Fargo offers bad credit loans, but under a different label

Reports from various consumer groups reveal that some of the biggest banks in the US, including Wells Fargo, have started to offer short-term, high interest rate loans that are much like bad credit loans, or payday loans. Although not labeled as such, and is instead known under the term “direct deposit advance,” consumer groups believe that this kind of loan offered by Wells Fargo works like.

Interest rate on finance loans soar higher if bill passed

Consumer finance firms in the US have been operating under a 30-year-old outdated system. Now that the government wants to update the laws covering the finance industry by passing SB 489, it appears that consumer advocacy groups are ranting and raving over it. The bill, although presented to reduce the current maximum interest rate on loans, will actually trigger higher interest rates for the.

Regional banks struggle to boost earnings

Comerica and U.S. Bancorp are among the largest banks in the nation. They are as well two of the most financially-established regional banks. However, the recent downward trend in their revenues from mortgage and business lending led them to turn to cost cutting. According to both banks’ executives, they would continue this strategic move to drive more revenues, considering the sloppy recovery.