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seal of ohioIn July 2018 the Ohio legislature passed Bill 123 intended to curve the fees charged by companies that offer Payday loans and Title Loans.  This bill was then signed by Governor John Kasich.  As to when this bill will become effective, I can only guess January 1st of 2019.  The bill mostly addresses the Ohio Short-Term Loan Act with adjustments to that existing law.  However, it also tweaks the Second Mortgage Loan Act and the law regarding Credit Services Organizations.  Although we would not advocate cash advance loans as the best financial option, we do disagree with most of the news sources which are declaring this a victory for consumers and how much money it will save consumers.

Will it really save consumers money?  A little background first.

Short term loans have been around long before the Ohio legislature agreed to approve licenses for lenders to provide payday loans.  Before the regulated Payday loan laws in Ohio, if a person needed some cash and didn’t have a friend or relative to help or a bank to approve him for a loan, then that person could choose to not pay the bill or borrow money from an unregulated and/or untaxed entity or individual.  One of the underlying reasons for the state of Ohio providing payday lending licenses was that it provided the state with the means to tax short term loans that were already being used by the public.  Another reason is that it provided the consumer with a way to access short term loans from safe and regulated lenders or entities.  So, licensing lenders to provide cash advances or short term loans never had to do with it being the best financial option or the cheapest option out there.  It was just a practical thing to do Payday neonconsidering that consumers were already using this type of product with or without the blessing of the government. 

 

 

Will it really save money for consumers?

The reason for the claim that the new law will save consumers money is that lenders will have to charge much less for short-term loans, if they want to offer such a product at all.  Payday lenders right now charge APR’s in the triple digits.  Under this bill they are limited to an APR of 28%.  Hurray for consumers right?  But consider what is being expected from lenders.  To go from charging a triple digit APR’s to a 28% APR and, yet, remain in business, is unrealistic.  The claim that consumers will save money under this new bill is “true.”  But, not for the reason the news media would like to have us believe.  The reason that consumers will save money under the new law is because there will be very few lenders offering short-term loans in Ohio.  So, this is how consumers will save money: with no supply of credit in the form of short-term loans, consumers can not borrow, consumers don’t owe that debt, and, therefore, yes, they will save money.  But this may come at the expense of many consumer not paying some bills or expenses.  Those few lenders who remain offering payday loans will, in my opinion, be the ones for which such loans are a side business.  Furthermore, those types of lenders will be forced to be much more picky as to whom they loan.  A 28% APR is not leave much to make up for loses related to serving consumers with bad credit.  Therefore, lenders will take less risks in lending to people who have bad credit.  loan shark My fear, and we are not endorsing payday loans as the best option out there, is that this “heavy handed” approach that the Ohio Legislature has taken will only lead consumers to borrow money from unregulated individuals and entities. 

Need Money, But, Not A Payday Loan?

If you have bad credit and need a loan, America’s Loan Company may be able to help with an affordable Personal Loan.  Although approval is not personal loan chalkboard 480x360guaranteed, we may be able to help even if you have bad credit.  We can lend as little as $500.00, if that’s all you need, with a term of 6 months to a year.  Our loans are always made to fit your budget and help to not get you into a cycle a debt, as may happen if you get the typical payday loan or title loan.  You may apply at our website, www.americasloancompany.com, or by coming to any of our offices in Ohio.  We also report your loan payment history to TransUnion to help you improve your credit.

How time flies.  One day kids are celebrating the end of the school year and parents are trying to figure out how to keep kids out of trouble for the next 2 months.  None the less, as parents we enjoy summer basking in the sun, going vacations, watching baseball games, among other activities. Then, in the blink of an eye, it’s time to start thinking about going back to school.  If you are anything like me, the beginning of the school year is “the most wonderful time of the year,” and time when the children start wondering why mom/dad are smiling all the time.  If you nothing like me, you must be a student. back to school happy parent

Not So Wonderful 

Okay.  So, may be the beginning of the school year is not all wonderful.  Although we may look forward to giving the kids something to do by going back to school, the beginning of the school year also brings expenses.  And, as we all know the retail stores make sure we don’t forget that it’s back to school time.  From book bags, clothes, tennis shoes, computers, it all add up to a big “cha-ching”.  And if you have a college student, let us not forget the dorm room fridge and books expenses among other expenses. 

back to school shopping cart

Need Money, But, Not A Payday Loan

If you need some funds to help with back to school expenses, America’s Loan Company may be able to help with an affordable Personal Loan.  Although approval is not guaranteed, we may be able to help even if you have bad credit.  We can lend as little as $500.00, if that’s all you need, with a term of 6 months to a year.  Our loans are always made to fit your budget and help to not get you into a cycle a debt, as may happen if you get the typical payday loan or title loan.  You may apply at our website, www.americasloancompany.com, or by coming to any of our offices in Ohio.  We also report your loan payment history to TransUnion to help you improve your credit. back to schoo cash

Yes it is summer, officially June 21st.  Time to enjoy the sun, warm weather, some rain (I’ll take rain over snow), and to plan a small vacation.  Whether you are planning a short trip to your nearest amusement park or a more financially significant vacation of several days, the costs can accrue fast.  Don't belive me?  Checkout Disney vacation packages on their website and you’ll scratch your eyes to make sure you seeing right. vacation beach

I Need A Loan For A Vacation and Have Bad Credit

America’s Loan Company does offer Personal Loans, from $500.00 to $3,000.00, for people with bad credit.  These loans have terms between 6 months to 5 years and your first payment is not due till about 45 days from date of contract signing.  This means that you make borrow $500 to a one day trip or mini vacation and not have to worry about the first payment till just about 45 days.  Furthermore, our terms allow you to have payments to fit your budget.  So, no need to get into a cycle debt with Payday loans.  To make it even better, we report payment histories to TransUnion to help improve your credit.

I Have Bad Credit.  Is My Loan Guaranteed?

Our Bad Credit Personal loans are geared to people with less than stellar credit scores.  However, this does not mean that your loan application is guaranteed to be approved.  We do have certain guidelines that are followed to prevent loss.  This means that although we may loan to most people with poor credit, there are some whose credit history is too damaged for us to approve the loan.  But, please, don't let that discourage you from applying for aloan with us.  It may be tempting to just get a Payday Loan or a Title Loan.  But, we are pretty comfident that loan terms will be better for you.

happy sunCould My Credit Score Cause Me To Be Declined For A Personal Loan?

No.  We don’t look at credit scores when determining approval for Personal Loans.  Instead, we look at the entire picture and payment history, among many other factors.  For instance, an applicant may have a credit score of only 600 due to credit cards that went into default many years ago and a bankruptcy discharged.  But this same applicant may have a great history with credit cards in the past few years.  The fact that a person is showing a good payment history in the most recent years, would be a great plus in our view and greatly increase the likelihood of being approved. 

America’s Loan Company can help Ohio residents with Bad Credit Personal Loans.  We have three branches, one in London, Ohio, West Jefferson, Ohio, and Logan, Ohio.  Even though we have 3 locations at this time, we are able to help Ohio residents who don’t live near any of our branches with Personal Loan needs, regardless of poor credit.  We are able to do this without you having to come to any of our branches.

I Live Too Far.  How Do I Apply For A Personal Loan?ohio map

You live in Ohio, but live too far to driver to our branches?  No problem.  Loan applications may completed through our website at www.americasloancompany.com.  This application is secured.  Once you submit the application, it gets sent directly to the branch that you chose to process it.  As far as, which branch to choose, it is up to you.  One of our Personal Loan Managers will be contacting you soon after. 

How Do I Send Documents Needed?

For Personal Loans, we require some documents before a final decision is made.  These are last two most recent bank statements, a most recent proof of income, ID, Social Security Card, and a Personal Check.  However, there is no need to bring these in personally.  These may be either E-Mailed or faxed to the office you chose to process the application.

How Do I Sign My Contract?

loan agreement Once the Personal Loan application is approved, there 2 options.  One, sign the loan contract at any of our branches.   Two, we E-Mail a copy of the contract, secured by a password.  You may then print the loan contract, sign it in front of a   Notary (most banks have notaries that do this for free or for a very small fee),  then E-Mail or fax all contract pages back to us.

 

Now That I Am Approved For The Loan, How Do I Get The Funds? 

You do not need to drive to any of America’s Loan Company’s branches to get your Personal Loan funds.  Once we get the contract signed, you may come to any of our branches to get the funds or we can direct deposit the funds directly to your bank account.  hand cash hand

Don’t let late fees accrue on your Personal Loan or at least not for a very long time.  That should be the end of this blog right there.  Unfortunately, so many ignore this money saving rule.  One reason for this I believe is the misconception that a late fee accrues only once per late payment on the loan.  The thinking is “I was late on my January loan payment, and, although I have not made a full payment to make up that payment, I will only accrue one late fee if the future payments clear.”  This is a mistake that will swell up the amount owman thinking of feesed on your debt.

So, How Do Late Fees Accrue?

Example:  Let us assume you don’t make your January 1st Personal Loan payment of $100.00.  February 1st comes along and you make your regular loan payment of $100.00.  America’s Loan Compay’s late fee is $15.00 that accrue after a payment is more than 10 day late.  Therefore, the $100.00 paid on February 1st will be used to make up January 1st payment, plus late fee.  That leaves February 1st loan payment still outstanding.  Then, no extra full payment is made in February and March 1st comes along.  A $100.00 payment is made on March 1st.  But, because February’s personal loan payment was still outstanding, a $15.00 late fee has now accrued for February.  The March 1st payment is then used to cover what was due February 1st, plus late fee.  As you can now guess, this leaves the payment for March 1st still outstanding.  Unless you make an extra full payment, in addition to the regular payment, between March 1st and April 1st, the process will repeat and you will keep accruing late fees.caution high fees

What Is Ihe End Result Of Accruing All These Late Fees?

So, what’s the big deal with a few late fees?  For one it will take longer to payoff the debt.  There will be a bigger principal balance at the end of the loan term.  Also, extra interest will accrue since less principal is paid every time part of a payment it taken to cover a $15.00 late fee.  In the example above for instance, if an extra full payment is not made to account for the February 1st missed payment, within an eleven month period in that same year alone, you will have accrued $165.00 in late fees ($15.00 x 11 months). 

This may also have a negative effect on your credit.  America’s Loan Company does report your credit to TransUnion.  A late payment that is not made current may make your credit history appear as if the account is constantly a payment behind.  

What If I Can Not Make A Full Payment Immediately?

If a payment is missed on your poor credit personal loan and you can’t make it up before the 10 day grace period is up, an option we give is to make a few extra payments over several installments until enough to cover a full payment is collected.  You will be paying late fees over a few payments.  But, it will reduce the total amount of late fees that will accrue otherwise.  For the example above, a person could make an extra $25.00 over the next 4 installments after January 1st.  So, by May 1st a total of an extra $100.00 will have been collected to make up the one full payment that the account is behind.  A total of $60.00 in late fees will have accrued by May 1st. But after May 1st no more late fees would accrue.  In the end $60.00 in late fees over 4 months is better than $165 over an 11 month period in that same year.

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