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How Will Short Term Loans Be Regulated Under the Proposed Payday Loan Changes from the Consumer Finance Protection Bureau

The Consumer Financial Protection Bureau has made a proposal of a new legislation that aims on short term loans like payday loans, auto title loan providers and cash advances that charge exorbitant interest rates. The purpose of the proposal of this legislation is to prevent the needy people from falling into a debt cycle while obtaining this type loan to cover their basis expenses. This is to protect the people who live on an unstable paycheck income from month to month.

Under the CFPB proposal, lenders must perform a full payment test to evaluate if the borrower is able to pay back the loan. Lenders are responsible for making sure that the borrowers can make the repayment as well as meeting their basic living expenses at the same time. The lender will have to asked the borrowers for income proof, and other debts that they have for example home mortgage.

The CFPB will attempt to end the debt trap cycle by putting some restrictions on the refinancing of the loans to the borrowers. The new legislation will prevent lenders from issuing the same loan to the borrower within a period of 30 days. The statistic report in CFPB claims that over 80% of the payday loans are refinanced in a period of one month.

The CFPB will also be regulating the penalty fees. Borrowers are often required to set up automatic debit with their bank account which gives permission for the payday loan company to collect the owed amount on the due date. However, if the account does not have enough funds, the borrower’s account will be charged with penalty fees from the bank and the lender.

The new rule will require lenders to issue a written notice to the borrower at least 3 days in advanced before they proceed to deduct the amount from the account. The written notice will provide information on how much money they will deduct from your account.

The government will set a limit on the amount that first time borrowers can borrow from payday loan companies. Nick Bourke, the director at The Pew Charitable Trusts said that banks can actually help these borrowers who want to borrow small loans but they can’t due to the lack of federal standards.

Many borrowers who support the legislation suggest that they also include an interest cap in the bill. The reason why many people are losing their possessions through payday loans is because of the high interest rate that is as high as 390% and they only have 1 month to pay back.

The people in Missouri want the government to put a 36% cap on the interest rate. But, the companies that offer short term loans have been fighting back as the significantly lower interest rate will cause them to

Why is it Easier to Get Approved for a Loan Online Versus Visiting Many Stores in Texas

Applying a loan online allows you to get approved faster compared to when you apply for the loan at a local branch. The staff at the local branch will take several days to review your application so this will also delay the time it takes for you to receive the funds from the loans. If you urgently need money for emergency reasons, applying for the loan online is the best solution.

The staff will process your application as soon as you have submitted it so that your loan can be quickly approved. With and online loan, it is now possible to receive your funds in the same day. This is much faster compared to traditional bank loan where you have to wait for at least a few months for them to review and approve your loan. They will send you an email that contains the directions on the information you are to provide them so that they can direct deposit the funds into your account. You will have to provide them with your bank swift code and your account number in order for them to wire the funds into your bank account.

The benefit of online loan is that they may charge lower interest rates than bank loans because they don’t have to maintain the operation cost of setting up physical offices in the country. Most online loans have fixed interest rates so you will pay the same interest rate during the loan term. This allows you to predict the expenses o paying back the loan and plan your budget accordingly as you don’t have to face the possibility of a sudden increase of the interest rate.

The process of paying back the online loan is also very convenient as you can set up your bank account to be automatically deducted by the due date. This prevents you from forgetting the due date and failing to pay back by the due date.

Banks are very fussy when coming to approve the loans because they will look at many factors. Online lenders are less picky and they only have a few criteria to meet. They don’t set a high credit score requirement so you can expect to get approved even if your credit score is average. You should also not be disappointed if have low credit score and the bank won’t approve your loan. This is because many lenders also offer loans to people with low credit score.

It is a good idea to pick a few online lenders and compare their fees and other features before you go ahead to fill in your personal information on the loan application. There are a lot of lenders that offer discounts on the interest rates so you should not settle on the first lender you come across.

Related news stories in Texas

Regulations for Texas Lending

Are Auto Title Loans Regulated by the Same Agency as Personal Loans

Consumer loans including the auto title loans and personal loans are under the regulation of financial regulatory agencies such as Federal Deposit Insurance Corporation (FDIC), and Federal Reserve Board (FRB). Auto title loans, also known as car title loans is a type of loan where your car is used as collateral. You will be able to get back your car after you have pay off all your interest charges and other fees. If you fail to clear off the outstanding debt, they will repossess your car.

Most auto title loans have a loan term of 30 days and the interest rate ranges in between 250% – 400%. Some online lenders charge a higher interest rate of up to 650%. The majority of the borrowers can borrow a few hundred dollars but there is the possibility of borrowing up to a few thousands dollars in this type of loan.

The regulation for the auto title loans vary across the different states in the United States. Every state has a different set of rules on the maximum amount that the lender can charge you. Your state may also have different rules on the rules on what types of actions they can take when you fail to make the repayment and have accumulated a large amount of debt.

There are a number of states that set a cap on the maximum amount of APR rate the online lender can charge. If you are facing a difficult financial situation and cannot repay your loan, you should discuss with an attorney. Alternatively, you can also call the regulatory agency of your state to discover what you can do to get back your vehicle.

Some states do not authorize certain auto title loan products so you must first check whether your state authorize the loan product that you want to sign up. Half of the states in the USA have positive views on the loans. There are 4 states that offer auto title loan through loopholes including California, South Carolina, Kansas and Louisiana. In California, loans that are above $2,500 are not restricted with small loan limits. In Kansas, the auto title loans are used as open ended credit lines. Louisiana does not impose any restriction on loans that are higher than $350 and have 2 months loan term. South Carolina does not put any limitation on loans that are higher than $600.

In conclusion, although it can be expensive to apply for auto title loan online, many people still resolved to this type of loan because they need some money to cover their temporary expenses. These regulations are beneficial towards consumers in that they prevent the lenders from mistreating the consumers for example charging an exorbitant interest charges or taking severe action against borrower that fail to pay off the auto title loan.

Alternative Financing Options For Small Business Struggling With Cash Flow

Today the economy has definitely improved from the recession and financial crisis that began in 2008, yet small businesses today can still face hurdles when it comes to financing their small business. It does not matter much weather you need the money for start up costs or to expand your rapidly growing small business, finding those funds can be challenging. We have already discussed how to find a small business loan in our earlier series on small business financing, but what if you cannot secure a small business loan, or need more funding than a small loan will provide? Lets explore additional options that might help you over the hurdle.

Credit Card
This has some risk tied to it. Sure you could break out the plastic when needed, but can you repay it in full? If you fall behind on your payments, your credit rating could tank severely. Credit cards can work for short term financial needs, such as inventory needs. If you do use credit cards for short term needs, make sure that you also pay off the total debt in a short term, else you could end up with long term debt due to interest payments. Using a credit card for small business financing is certainly not the optimal way to finance your small business, but it can work in a pinch.

Merchant Cash Advances

This is where a lender lends you some money, and the debt is repaid by your future credit card income. You basically give up a percentage of each credit card sale to the lender. This can quickly get costly, but it can keep you in business. The plus to this form of borrowing is that there are no regular fixed payments required by the lender, as the lender just takes a portion of whatever credit card income you receive.

Hard Money Loans

This should be a last resort for any business, as this route to small business financing carries the most risk. Instead of being financed based on your businesses credit worthiness, it is instead financed solely on your assets. You obtain the loan, and the lender receives collateral. If you default on the loan, all of your businesses collateral can be seized.

SBA backed small business loans

If you have been shot down by banks, but have substantial assets, you may very well qualify for a Small Business Administration backed loan. The advantage here is that the Small Business Administration makes a loan guarantee to lenders for a large portion of your loan, this in turn makes lenders more apt to make a loan to said small business. In fact the SBA’s number on function today is to serve as a guarantor of loans for small businesses. If you have SBA backing, you are more likely to be approved for a small loan, even if you have been denied before. The guaranty for these loans is 90%, which makes it a much easier choice for banks.

Financing a small business is always a challenge. This web site features reviews of lenders which specialize in lending to businesses of all credit worthiness, so if you have had a difficult time finding a loan, be sure to read review on websites like the BBB or on other finance websites.

Real Estate Investing Returning In Abundance How To Prepare Financially in 2016

Many people are interested in learning more about real estate. Unfortunately, along with this increased demand comes an increase in fraud. Wherever sellers gather, ne’er-do-wells swoop in to deprive them of hard-earned cash. The following article provides a collection of tips about purchasing property. Some of these tips may help you avoid losing money to the schemers and scammers.

If you have or plan to have a big family, you should look for a home with enough room for a family. You should have a safer house if you purchase from parents who raised kids there. They will have already done a lot of the child-proofing that is often required in homes.

If you are planning to have kids in the future, you should consider researching schools in the neighborhood to see if they will be satisfactory should you have any children down the road, even if you currently do not have children.

If you submit an offer for the home you love and the seller does not accept it, try to make compromises and negotiate with them. Before you move in, they may be willing to cover the price of the closing costs or necessary repairs to the home.
Everyone hopes to find the perfect home in a perfect area at a price you can afford. However, this is one of those times when you can usually only pick two of these three desires. Try to keep an open mind in regard to what you want. You might not get your perfect home. Modify your search in either location or type of home if you can’t find the perfect house in the perfect area.

Before you look into purchasing real estate, educate yourself thoroughly on mortgage terms, finance terms, and other personal loan terms.

This is a great time to start investing in property. Property values continue to hover near all-time lows since the market downturn of a few years ago. The markets will go up again someday, which will make your investment more profitable.
When engaging the services of a real estate agent, you should ask questions about their track record. A good agent will be ready to respond to all of your questions professionally and thoroughly.

real estate 2016

Have a professional inspector look at the home you plan to purchase. You don’t want to uncover any major problems after you buy. If there are structural issues after you buy the inspector an extremely cost-effective and-safety conscious choice that you will be responsible for and you may have to leave your home while it is repaired–this can be a serious problem.

Most foreclosed homes may have been sitting vacant for some time before going up for sale, because they have not been maintained for a very long time. A lot of foreclosed homes on the market are going to need HVAC system replacements, and possibly the services of an exterminator.

There is a wealth of resources on how to purchase effectively. When you can apply these tips, you will be on the right track for buying the property that either you need or want to own.

Savings Goals Small or Large Could Springboard Your Personal Finances In 2016

Setting Savings Goals In 2016 – Start Small, End Big!

We all have something we want, but just don’t have the money to buy outright, so we need to save up our money for it. Whether it is a 52 inch flat screen television or the latest iPhone, we all want something that really doesn’t fit into our regular budget. That doesn’t mean we shouldn’t ever have such a thing or settle for something less than what we want, but it does mean even though most of us want everything “right now!,” we are going to have to make a plan and set a goal for when we will have the money to buy the item we want.

Hopefully, we have all learned how to create and stick to a reasonable budget, a budget which should include putting money into savings on a regular basis. Now, I realize you are thinking that means if you have been doing this for a while, you should have the money to buy that special item outright. But that would leave you with no savings left, and remember, having money in savings is also in case of unforeseen emergencies. So you don’t want to use that all up for whatever it is you want. Instead, you need to figure out where you might be able to cut a little extra out of your weekly or monthly expenses to put aside for that special item.

This is one time when taking advantage of available overtime at work comes in handy. While normally, you should just put that overtime pay in savings, when there is something special you want to buy, using overtime pay or a bonus as part of the way you pay for it is one of those “exceptions” to the rule of trying to always save your overtime and bonuses. In fact, for some people, they always put overtime and bonuses aside from savings for “special” things like vacation, holiday travel or gifts. There are as many ways to create a budget and save money as there are people on the planet, the trick is to find a way that works for you and that you can stick to.

So, we have already decided to take advantage of available overtime or bonuses to put towards our desired luxury item, but where else can you save a little extra money to buy the item? It all depends on how long you are willing to wait and how much you are willing to give up. Some people might give up eating out and gourmet coffee for as long as it takes to get what they want, others aren’t willing to go quite that far. Most of us fall somewhere in the middle. Look at your budget that you have created, where you already cut some items out so you can avoid living paycheck to paycheck. How soon do you want this item and how much does it cost?

Since you already know you need to save or the item you want, think if there are times during the year where it might go on sale (like Black Friday, Memorial Day, etc.) and see if one of those holidays fits in with your timeline. How far away is that? A month, two, six? Hopefully, one of the really big holiday sales fits within your timeline. Now look at the “regular” price of the item and divide the cost by your timeline, using weeks or months, depending on how you get paid, or are planning to work your saving for the item. The result will tell you how much you need to put away each planned time (week, month, etc.) to reach your goal in the time frame you set. Is it realistic? Can you look at your budget and see ways that you can save a little extra here and there to make your deadline? If you really want the item, you will instantly see things you can give up just for that period of time so you can save what you need. Then once your deadline comes and you have saved up enough to get your new television or the latest phone, I can almost guarantee you will start thinking of the next thing you intend to save up for, feeling so good with the reward you wanted reached.

Thinking Of Quitting Your Job, Get Your Finances In Order First

For many people, burn out with either their job or profession is not a matter of if, but when. If you ever decide it is time to walk away from your job, or even your profession, there are some things you should plan for and consider. Preparing ahead of time is key, versus making a rash decision fueled by emotion. I myself have made this mistake, a mistake I often regret. If you have decided that now is the time to get away from either your job or profession, take some time to consider if right now is the right time, or if you can wait until you have all of your ducks in a row, so to speak. You never want to leave your job with no plan B to cover yourself. Lets examine the steps you need to take.

Examine your finances

You need to consider your current income versus your current expenses. When considering this, you should include your spouses income or any alternate income, such as free lancing that you can come by. Your goal here is to see if you can get by without your main income. if you cannot, you need to see if you can get by if you cut back. If you find that you cannot get by without this income, or without cutting back, you may need to bite the bullet and hang onto your current job until this changes. You can always start saving for an “exit plan” where you save up for 6 months to 12 months of expenses, and then make your exit plan.

Adjust your habits

After leaving a job, if your income does not match, you should adjust your spending habits. You should work on going out to eat less, not doing big vacations, and work on finding new income. This is basic finances, but can be sobering to someone used to a certain life style. If you do leave your job, until you can replace that income, sacrifices need to be made. Can you cut back? Be honest with yourself when deciding weather or not to leave that job, your finances may well depend upon it.

Plan for the worst

As humans, we never want to picture the worst happening, yet it often does. Do not let instinct cloud your judgement. Prepare for all possible what if scenarios as far as your finances are concerned. You do not want to have to rely on loans, or worse the kindness of family and friends should your finances take a dive during your transition period. Being prepared for the worst will ensure that you can push through the worst, should the worst come to pass.

Think about retirement

If you are about to leave a job with a good retirement plan, you need to think about how you will shore up that retirement plan. Unless you die early, retirement will happen. The choices you make today will define how you live in days to come. Do not let emotion ruin your future. If you can replace your retirement income, by all means jump ship. If you cannot replace it, or do not yet know how to replace it, you may want to hold off on the choice to leave that job. No one is forcing you to change jobs, you do deserve a new profession or job today, but not at the cost of your life in the future.

Save for quitting

If you do plan to leave this job or profession, I would advise holding off, and saving. If you cannot save while making the money you are making now, can you really handle making much less income? Many people who have left their job or profession wished they had followed this advice, especially in today’s very competitive job market. On average you should have 6 months of expenses saved before you make this move.

Stay tuned to the financial writers from QCPL for the top financing, lending and money savings tips heading into 2016.

Are All Pre-Approved Credit Cards Equal For Every Consumer

If you are looking for a new credit card, chances are you already know randomly filling out credit card applications can lead to two things, one the chance you get rejected and loose points of your credit score due to the hard inquiry. Wouldn’t it be nice to see what credit cards that you are pre-approved for, so that you could find targeted offers and reduce the risk of being denied a credit card, as well as hurting your credit score? Well you can! Many credit cards today are now offering you the ability to see what credit cards you are pre-approved for, without affecting your credit score. This does not mean you will 100% for sure get the card, if it says you are pre-approved, rather the soft inquiry matches their preferences, but examining your full credit report upon application could result in them finding something that makes you no longer a match. Yet it still improves your odds of finding the right credit card offer. Lets examine which cards offer this, and how to view your offers from that issuer.

American Express
To discover if you have any American Express pre-appoved charge card offers. simply visit!view-your-prequalified-offers, fill out your name, address and last 4 of your social, and then any offers they have will show up. You can also opt into offers, so that any time your credit score changes and matches what Amex requires, they will send you an offer.

Bank of America

This bank does not offer a large selection of cards, but they do have a few different credit cards, for a wide range of credit scores. Go to, fill out the requested information and any offers they have for you will appear on the next page. You will get a response in less than 60 seconds.

Capital One
On top of them asking for the usual name, address, and last four of your social, this credit card also asks you to rank your own credit score, as well as asking you which credit card perks or benefits matter the most to you. Simply visit to find the requested form, it takes about 30 seconds to one minute to fill out.

This credit card issuer also allows you to check to see if you have any pre-approved offers in the pipeline. To check simply visit, and fill out the simple form, within one minute you will receive any pre-approved offers they may have for you.

This bank also allows you to check to see if you have any credit card offers available, simply visit It will ask you for your name, address and the last 4 of your social security number, as well as what card benefit you most desire, then in less than 2 minutes any credit card offers that Citibank has for you will show up on the next screen.

Credit One
This credit card tends to give everyone a card, since they specialize in lending to sub prime borrowers, but none the less they too have a way to see if you are pre-approved. Unless your credit is terrible, I would stay far far away from this credit card. If you want to see if you are pre-approved, you may check at

Discover your pre-approved credit card offers by visiting

US Bank
Find all of your pre-approved US Bank Credit card offers by visiting

Our mission is to help consumers searching for tips with loans, finance and credit assistance in 2015. Have a finance topic you want us to cover, send us an email and we can have our editorial team research this for you.

Tips For Seniors to Stretch Their Dollars Further With Financial Savings

If you are a senior citizen, you likely have to watch every dollar carefully. Living frugally does not mean you have to live cheap, or that you are poor. Instead living frugally implies that you are careful and wise with your most valuable asset, your cash flow. When you live frugally you know that every single dollar saved adds up to a lot of dollars at the end of the year, and a better quality of life. We will discuss some tips that can stretch out your retirement savings much further.

Coupons are a great way to save extra money. You can often find them right in your mailbox, or in your local free community news papers. You can also buy your local Sunday news papers, which is sure to be chuck full of coupon goodness. You can maximize your couponing by looking for stores which agree to double a coupons value, although these stores are often harder to find than in days past. I know of one couple who save on average $80 per shopping trip due to coupons, and they shop once per week. That is a savings of $4160 per year!

Health care

This area seniors often get lost in the sea of options out there. The one thing for certain with health care is that every year the prices change, not just for health services but also insurance premiums, and what is covered or not. The perfect health plan from 2014 may not be well suited to 2015 and beyond. You should review your health care options every single year, compare plans and premiums and make the decision best suited for your level of care you come to expect as well as cost. You just may be able to get the same or better coverage by examining your options when your new window for changing enrollment opens up. You can well believe that these insurance companies are competitive and that deals can be had, if you only but look for them. Remember looking at your options comes with no obligations.

These days most people have a cell phone. If you too have a cell phone, yet still own a land line, you might want to consider dropping your land line and staying just with a cellular plan. Landlines are outdated and no longer needed, a cell phone does everything a land line does and more. The savings from dropping your land line can equal several hundred dollars per year. If you do not use the phone often there is even cheaper options available, such as a prepaid plan, and these plans can cost as little as $10 per month.

Property Taxes

Many states offer senior citizens a break on property taxes. You should look into if your state offers such a discount. If they do, there will be paperwork to fill out of course, but it should be relatively easy.

The Anatomy Of Understanding Credit Card Transactions

Many people wonder exactly what happens when they swipe their credit cards, or how exactly an online transaction occurs on the credit card companies and merchants end. To better understand how your merchant gets paid, we need to break it down step by step.

Point of purchase

Either online or in a brick and motor store location, your credit card number and information is entered into the system. Either secure hardware (in a store) or software (online transactions) takes your credit card information and processes the order. For transactions in a store you will need to enter your 4 digit pin in many cases, with the exception of small amounts to some locations. For online purchases, you may need to enter the 3 digit CVC code on the back of your credit card. Now your purchase is verified and ready for authorization.


Once verified, your charge will need to be verified with the credit card company. The credit card company will need to see if you have enough credit to make the purchase. Your data is transferred to a authorization network to approve or deny the amount being charged. It will check your credit limit and for any holds on your account, if all these checks pass the network will forward approval. If there is not enough credit left or if there are any issues such as a lock on your account a NOK message will be sent to the merchant and your charge will be declined. Sometimes a 3rd option will come into play where the credit card company asks the merchant to contact the credit card company in order to verify the purchase and the card holder. Some credit card companies and merchants will have the funds clear and post right away, while others will hold them in batches to be sent to the processor all at once for clearing and settlement.


The software will receive the approval notice from the authorization network. You will be notified at this time, and the charge will go through. Once approved the transaction is uploaded for record keeping to the authorization network.

Clearing and Settlement

Your credit card will forward the money to the merchant, usually in one business day. This happens via the processor which will send the transactions to your credit card company. Once this happens the merchants bank will be credited with their earnings and the process is now completed. When you notice a transaction is no longer pending the merchant has been paid.

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