Personal Finance Company

Unlike conventional banks, a personal finance company offers low interest loans for a wider variety of purposes in smaller amounts. Most consumers wouldn't consider asking a bank for $100 loan, but finance companies make money helping customers get the cash they need without collateral or credit. Companies that offer cash without collateral are essentially a "poor man's bank." As long as borrowers can show proof of a steady income, most can qualify for loans from $100 to $10,000, usually within 24 hours. Loans can be used to consolidate bills, help balance a household budget, pay off credit card debts, buy school clothes, or provide down payments for big ticket items, such as a new home or automobile. A friendly neighborhood or web-based finance firm may also offer car title loans, payday advances, and tax refund anticipation loans.

Poor credit customers can boost consumer report scores by borrowing and re-paying loans offered by a personal finance company. When consumers get rejected from prime and sub-prime lenders, many turn to smaller firms for quick cash. By making consistent and timely payments to local and online money stores, consumers can build a documented payment history that can add greater borrowing potential and restore creditworthiness. Consumers may take out a series of small loans and quickly pay off short-term accounts. Title pawns enable vehicle owners to borrow against the value of a car, boat or recreational vehicle to get extra cash without losing the use of the vehicle. The pawn company charges interest on the loan and holds the title until the debt is paid. Payday advances are also extended to borrowers with proof of income and repaid from their next paycheck. Refund anticipation loans come in handy at tax time! Instead of waiting for Uncle Sam to issue a check via snail mail, a personal finance company lends customer's all or part of the anticipated refund. When refund checks come in the mail, borrowers repay lenders principal loan amounts, plus interest and fees.

While a personal finance company offers flexible, easy-pay loans, interest rates may go through the roof. Borrowers can expect to repay title pawns hefty finance fees. Payday advance companies charge an average of 15% per each $100 borrowed. Tax refund loans also come with a fee. In the past, loan companies have been criticized for unfair lending practices, charging exorbitant rates and imposing high fees on customers who fail to make payments at the end of the contract. The Bible speaks against those who unfairly charge consumers high interest rates and hidden fees. "Thus saith the Lord God; Let it suffice you, O princes of Israel: remove violence and spoil, and execute judgment and justice, take away your exactions from My people, saith the Lord God. Ye shall have just balances, and a just ephah, and a just bath" (Ezekiel 45:9-10). In spite of advertising hype, not everyone gets their titles back; and because of a failure to make timely payments, many borrowers wind up losing vehicles but are still obligated to repay title pawn loans. And when borrowers are unable to repay tax refund loans, debts and penalties can quickly add up.

A personal finance company offers borrowers a chance to honor financial obligations and obtain redemption from a poor credit history. However, when borrowers fail to dishonor financial obligations, there are consequences. Unpaid loans, penalties, interest and fees can quickly derail a consumer's plans to rebuild creditworthiness. And the loan that had high hopes of being a borrower's one way ticket out of debt becomes a one way pass to financial bondage. Borrowers who want to avoid becoming entangled by fast cash loans need to exercise extreme caution and follow some simple rules. Rule number one: Consumers should never borrow more money than they can easily repay. No matter how tempting a no-collateral loan may be, if it cannot be repaid without busting the household budget it is not worth the hassle or the headache. Customers should always borrow within their means to repay. Rule number two: Read the fine print on title pawn, payday advance and tax refund loans. In the flurry of applying for a fast-cash loan, borrowers should keep a level head and an eagle eye out for hidden clauses, administrative fees, and exorbitant interest rates. Once borrowers sign on the dotted line, they are obligated to make monthly or weekly payments while adhering to each clause in the contract. Rule number three: Plan ahead and budget monthly loan payments from regular income. Borrowers shouldn't plan on repaying a loan based on lottery winnings or borrowing from cousin Bob. If consumers have to reach into someone else's pocket to repay a personal finance company, then the loan simply costs too much.

Before contracting with a personal finance company, borrowers may want to consider alternative methods of raising extra cash. Homeowners can find extra dough by cleaning out the attic or garage and selling unused items at yard sales. Grandma's silver tea set may be a treasured keepsake, but if it will fetch a good price at an antique dealer and prevent consumers from borrowing at a personal finance company, it may be best to sell it. Individuals can sell old vehicles, appliances, television sets, and computers for spare parts or to metal salvage companies and net cash to cover emergency expenses. Consumers who still want to get cash fast can browse the Internet for online agencies which offer electronic applications for results in minutes. Applicants are usually required to submit a valid drivers' license, proof of steady income, banking information, and a voided check if payments will be direct deposited. A neighborhood personal loan company or web-based money store can be a borrower's best friend if repayment terms are reasonable and within household budgets.

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