It seems all we ever read about is the “negative” about the payday loan industry, however there seems to be some positive momentum happening for payday lenders. Are people finally seeing that there is a need to help those consumers that are paycheck to paycheck? Americanbanker.com is reporting some positive news for the overly criticized payday loan industry.
Are lenders closing up store fronts to help cut costs, and therefore going to be utilizing the internet more to generate their business? For some, the answer it yes. Future growth for many payday lenders is probably going to be in the alternative products that many are getting into to help diversify their portfolio. Launching new products such as pre paid credit cards and bill pay services are some of the products that payday lenders are either getting into, or have already tapped into. This is great news for the longevity of the payday lenders. So what are these payday lenders going to be doing in the states where the payday loans are banned? Getting into ownership of pawn shops appears to be the direction many lenders are going in states such as WA and AZ. Lots of positive things happening, and we are anxious to see how Leadpile will be apart of the future success of the lenders.
Check Cashing Stores Getting Into Payday Loans?In NY there seems to be some interest with potentially passing a law that would allow check cashing stores to lend money. The bill, they would call the “Short-Term Financial Services Loan Act”, would potentially allow registered check-cashing stores to make loans between $300 and $2,000 for 90 to 180 days. The loans could not be more than 25 percent of a borrower’s gross monthly income; installment repayments must be 10 percent or less. This could certainly benefit those frequenting the check-cashing stores that are paycheck to paycheck. New Yorkers are in need of this sort of short term loan because there are about 825,000 un-banked adults in New York City, according to the Department of Consumer Affairs, and this is something I am sure is similar in some of our nation’s largest cities. Advocates of this new pending law are wanting it to be known that this is NOT a payday loan, but it is in fact a loan with a repayment schedule that has installment payments within two days of a borrower’s payday.
No matter what it would be “called” it seems that there could be some additional resources for New Yorkers that are paycheck to paycheck. If a law like this is passed in NY, then will other states follow? We shall see… Stay tuned!
Pawnshops Seeing Increased TrafficWith the way the economy is going right now, any resource to be able to get money is potentially what all Americans are looking utilizing at some point. One resource for quick cash is the payday loan, and Leadpile works a lot with this industry and understands that there are a lot of consumers out there that truly have no other resources to get a short-term loan. Therefore, they turn to short-term loans like payday loans. Some criticize this sort of “temporary loan” as not the best option, however each person is different and each situation is different. This means that the solution to getting out of a “tough situation” could be different for each person. Some have chosen to not seek out a payday loan or have previously utilized them unsuccessfully and now are turning to pawn shops.
Pawn shops are seeing increased traffic in their stores because of consumers that are looking for that “other” option. The other contributor to more people visiting their local pawn shops is the History Channel’s television show Pawn Stars. Some see this option as more attractive than something like an auto title loan because they do not have to forfeit the rights of any collateral. No matter what your circumstances are financially, making sure to look at all your available options is key. Everyone should weigh the pros and cons of each solution.
Banks Offering Payday Loans?
I found this article interesting about payday loans maybe being offered at our nation’s banks. A few of the nation’s largest banks — including Minneapolis-based U.S. Bancorp, Wells Fargo & Co. of San Francisco, and Fifth Third Bancorp of Cincinnati — are now marketing payday loan-type products, with triple-digit interest rates, to their checking account customers. Really it is something that should have happened a while ago, or maybe now this is the perfect time to really give the industry a little better image. We have all discussed the need for these short term loans, however now that our banks will be looking at offering these types of loans, what does that do to the future our payday loans? Is this maybe the beginning of the segway into installment loans? What does something like this really mean?
Leadpile will probably be watching something like this because this could open up some doors on who to work with, but also how is this going to affect the future of the payday loan lead generation business? I think this is a GREAT thing to hear about regarding payday loans! The rest of America is waking up to the need for this sort of short term loan. It’s about time!!!!!!!
Short Term Credit Union Loans The Alternative To A Payday Loan?
When someone needs some quick cash, most think of getting a payday loan because it is quick and no credit check is required. However, in recent years, credit unions have tried to come up with an alternative to a payday loan, but some seem to be similar in many aspects. Does this mean that our nation’s credit unions will be getting put under a microscope like most payday lenders? The unfortunate thing is that many of these consumers are needing “emergency” money, so places like credit unions are trying to jump in and help out their customers with creating these short term loans. There is certainly a need, or credit unions would not look at creating their own version of a payday loan, but really what is the difference? Is there some way all lenders can come together to create one “short term emergency loan” that can help our nations consumers get out of trouble? Leadpile hopes so, because we really want to continue to be able to generate leads of those that are looking to be connected with someone that can help them. Sounds like the credit unions and the payday lenders have a common goal >> help consumers! Right?
Leadpile’s Installment Loan Leads Gaining Traction MarketwideEmergencies often arise causing people to need cash quickly. Many individuals need quick access to money to pay hospital bills, car-towing charges, or for emergencies. These individuals often times go online for information regarding an installment loan.
An installment loan is a loan with a fixed number of payments. They are somewhat similar to payday loans but with installment loans you pay fixed payments back to the lender until the loan is completely paid off.
Some Installment Loans come with the following benefits:
- You can get up to $12,000
- Installment loans offer convenience. The reason for this is because you are able to budget wisely. You know the exact amount of your payment and the exact day that it is due.
- It doesn’t matter whether your credit rating is not perfect.
- During the repayment period, there is typically a steady decrease in the amount of interest as you make payments.
- Installment loans are readily available and easy to access
Typically, there are two types of installment Loans: Secured and Unsecured.
- Secured loans – These are offered by financial institutions against collateral.
These loans attract a lower interest rate charge as compared to the unsecured.
- Unsecured loans – To qualify for these loans, one must have an indication and proof of current employment. These loans attract a higher interest charge compared to the secured ones.
LeadPile is the best place to buy installment loan leads. LeadPile’s installment loan leads have all the information that a company needs in order to process an installment loan request. LeadPile’s advanced and innovate system allows clients to acquire leads that are tailor made with specific filters.
Short Term Loans may be next big lead space for Leadpile
PDL Industry Blog pointed out some lenders are thinking about implementing installment loans as a boost to their existing Payday Loan Business. These new potential regulations regarding capping the interest rate, do not appear to affect larger banks offering short term loans. The larger banks APR tends to be below the capped APR that the state is looking to implement, however the payday loans APRs are the ones that would be feeling the effects of the potential rate cap. This could be why some payday lenders are looking at new types of “loans”, where some of them have longer terms and possibly a little higher loan amounts. These sorts of changes could reduce the overall APR that the consumers are seeing. The results = the CONSUMER is happy because they got the much needed loan… the LENDER is happy because they could provide this service to the consumer… the STATE is happy because it meets all their requirements of the lending regulations.
It looks like the LeadPile Exchange will blow out another vertical in very short order! Stay Tuned…
Loan Modification & Debt Settlement Leads Wanted!
The economy is bad, and consumers are needing help with their mortgages and debt. Leadpile realizes this, and so does our advertisers/lead buyers. There are loan modification and debt companies out there looking to help more consumers. Leadpile is looking for those people to be matched up with our advertisers to provide these services.
Leadpile Lead Exchange makes it quick and easy for lead publishers. Here are the offers you can get up and going in minutes. This is a great way for these consumers to fill out the required information, and be matched up with those that can provide the service to them!
Fico Score Seeing Some ChangesIn recent news the Fair Isaac Corporation is rolling out an updated FICO score. A FICO score was created back in 1989 to help consumers and businesses determine consumer’s credit worthiness. All 3 credit reporting agencies (Transunion, Equifax, and Experian) will be implementing this new scoring.
Some things that are changing with the newly updated FICO score:
1. Ignoring of small collection accounts
2. One credit problem forgiven
3. Changes to authorized users and how it affects your credit score
Things you will want to now pay attention to with regards to your score:
1. The more credit you use in regards to your balances versus credit limits will affect you more now.
2. Don’t close $0 balance accounts now. Keep them open and don’t use them.
3. You will be penalized if the lenders close your accounts. To prevent this, charge one time per month to keep activity going if you want to keep the account.
4. Diversify what credit accounts you have active. For instance, have some installment accounts (IE- CAR loans etc) AND revolving credit. This shows you are able to maintain both types of credit.
Fair Isaac is hoping these changes will help with getting a better depiction of credit worthiness. Lenders will like it more because there is going to be a more precise score of their credit. Consumers will like it more because if that score is higher, that makes the cost to get more money (loans and new credit) cheaper. The better your FICO score is, the more credit you have available and the lower your rates will potentially be to borrow money. This seems to be a win win situation for consumers and businesses.
Leadpile Lead Exchange wants to help consumers and businesses to be connected with regards to any financial matter. This new FICO score will most likely promote more consumers to want to take a deeper look at their scores and how they can maybe get them higher. Credit repair companies are probably a really good option to look at to help do that.
Buried In Debt: What’s The Best Way to Deal With It?
The holidays are here and more and more of us are getting more and more in debt trying to prepare. The unfortunate thing is many consumers were already in a bad situation with their debt, and now the holidays are going to add to the mess. There are various options out there to help consumers with their debt situation. Debt consolidation, debt settlement and credit repair are a few services that help consumers with resolving their debt situation.
Debt Consolidation: Working with a company that helps you consolidate all your credit cards into one payment. A lot of companies can even work with the creditors to pause any future late charges or excess fees from being added to the current balance.
Debt Settlement: Working with a company that works with the creditors to get balance settlements. A certain percentage of the total debt amount is paid, versus the whole amount and the balances continuing to get larger.
Credit Repair: Working with a company to help educate and direct you in the right direction regarding your credit. There is a lot of information to know about your credit report and how to really optimize getting the most of your credit report.
According to Consumers Affairs, here are some things that determine if you need help with your debt:
|•||Your credit card balances are rising while your income is decreasing.|
|•||You are only paying the minimum amounts required on your accounts, or maybe less than the minimums.|
|•||You’re juggling bills. For example, you apply for another credit card and use cash advances from it to pay an existing card.|
|•||You have more credit cards than a smart gambler has poker chips.|
|•||You are at or perilously near the limit on each of your credit cards.|
|•||You consistently charge more each month than you make in payments.|
|•||You are working overtime to keep up with your credit card payments.|
|•||You don’t know how much you owe and really don’t want to find out.|
|•||You have received calls or letters about delinquent bill payments.|
|•||You are using your credit card to buy necessities like food or gasoline.|
|•||Your credit cards are no longer used for the sake of convenience, but because you don’t have money.|
|•||You are dipping into savings or your IRA to pay your monthly bills.|
|•||You are hiding the true cost of your purchases from your spouse.|
|•||You’re playing the card game by signing up for every credit card that sends you an unsolicited offer.|
|•||You have just lost your job or are fearful that you are about to and are concerned about how you will pay all your bills. |
Leadpile Lead Exchange deals with all these lead types and knows there are a lot of people struggling with trying to get some sort of help. Getting more knowledge regarding your “credit” is key to any of these services. Come out with something learned if you seek out any of these services, so this sort of thing does not happen again (if avoidable of course).
Channel 15 confused over loan cause and effect
There was a recent report by Channel 15, that brought up a study done by Vanderbilt University. In this study it pointed out, “Payday loan customers who are approved on their first application are more likely to file for bankruptcy than those whose initial applications are denied, according to a study out of Vanderbilt Law School. ” I am not sure I understand where this is going as far as trying to point out a bankruptcy filing rate with those that took out a payday loan. The people that could not get a payday loan probably did not qualify for the loans because of some sort of income issue or other specific requirement the payday lenders require. I would think this sort of individual had more potential of falling behind and contemplate bankruptcy, don’t you think?
Leadpile Lead Exchange has been generating payday loan leads for some time now. Blaming or relating bankruptcy filing rates to those that have taken out a payday loan, and not those that have been approved for one, just does not make sense to me. Does this also mean that someone who took out a new auto finance loan is more likely to file bankruptcy, versus someone that applied for an auto finance loan and was denied? There are people that have a lot of outstanding past due debt that I would say is more of a correlation to filing bankruptcy, versus someone who took out a payday loan. Those that did not manage their debts properly, had an expected loss of job, or those that had a major financial change in their life are more of a cause of someone filing bankruptcy. Payday loan = bankruptcy? Payday loan = what else?
Credit Repair & Leadpile Lead Exchange
Help with repairing your credit is something pretty much everyone could use a little assistance on. With a tough economy, Americans are needing to worry about more important things like paying their next electric bill. However, when that time comes where they have the ability to get help, credit repair is a great option to look at. Credit repair assistance can be a very informative service, that once you learn what makes up your credit report, you will be able to use the valuable information in the future.
Leadpile Lead Exchange is currently generating a large volume of credit repair leads. These consumers need the help now and are looking for someone to provide that service. Knowledge is power when it comes to your credit report, unfortunately not everyone is in a position to have great credit. Knowing we have a large demand for this lead type, and the large amount of consumers wanting assistance, Leadpile has rolled out some text links/landing sites for lead sellers to use.
If you are currently not working with Leadpile to purchase or sell credit repair leads, I recommend it!