Midland Rail

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Do Instant Decision Loans for Poor or Bad Credit Actually Help?

Posted on July 18, 2017 in all aboard

Instant decision loans aren’t offered on the basis of conventional lending wisdom. Although some lenders only provide loans for bad credit when supported with collateral, this isn’t always necessary. Much depends upon the applicant’s employment status and how much money they wish to borrow. The provision of security allows that person to get acceptance when they wouldn’t otherwise be eligible. Whether this is a good thing or not depends upon personal circumstances just a month later.

Who Offers Instant Bad Credit Loans?

Secured and unsecured loans for tenants and homeowners are granted by payday companies, pawnbrokers, car title loan lenders and credit unions. They involve no credit scoring at any stage of the application process. Performing a credit check would be folly as very few customers would ever receive approval. The problem with not performing credit checks is that it leads to a higher default rate and customers all pay a flat rate, regardless of status.

Cost of Instant Decision Loans for Bad Credit

  • A guaranteed bad credit loan for $700 in Nevada results in the need to repay $857.50 just 30-days later. The typical APR is 273.75%. Source: PayDay1One.
  • In California, the maximum size of an unsecured loan for tenants is set by law at $260. This equates to a maximum APR of 212.92%. Source: Spotya.com.

A number of American states have placed an upper limit on the the amount that can be borrowed. Fifteen states, as well as Washington DC, have placed a cap on the maximum APR that can be charged. There aren’t any restrictions on instant bad credit loans in the UK.

Why Poor Credit History Loans are So Expensive

  • Lenders face a far higher default risk as the bulk of applicants have already been rejected by the banks because of their repayment history.
  • Poor credit history loans are also short which leaves the lender with less time to recover their administrative costs.

Growth Poor Credit Payday Loan Lending

The popularity of loans for bad credit has risen considerably in recent years. Many people have lost their jobs or failed to keep-up with the repayment on existing credit agreements so have nowhere else to turn. According to Fredrika Schouten of the USA Today “The number of payday lending stores has doubled to more than 22,000 in the past decade.” Whilst this is perceived as a bad thing by critics, bad credit lenders assist customers who have been rejected by mainstream banks and lenders.

Pros and Cons of Guaranteed Bad Credit Loans

Instant decision loans are granted to a section of the community that has long since been abandoned by the banking sector. An any-purpose quick cash advance could be granted to an applicant with a history of adverse credit. This could help pay the rent or fix a car, thus allowing that person to keep a roof over his head or keep their job. The main criticism against poor credit history loans is the usury cost of borrowing makes it difficult to clear the debt and may exacerbate financial difficulties.

Wonga Loans Review: Direct Lender Cash Advance Loan Until Payday

Posted on May 12, 2017 in all aboard

You’ve seen all the ads for Wonga loans, but what are they really like to borrow money from? There are a number of sites like Wonga online, but Wonga.com aims to separate itself from the competition with its ethical and transparent approach to non-traditional lending.

If you need emergency cash for any purpose, a payday cash loan from Wonga could provide the perfect solution. The application process is automated so, assuming that your application is approved, the funds will be sent directly to your bank account within the hour.

Wonga Loans Review: How Do You Get a Loan Until Payday?

New customers are required to have a full-time job and pass a credit check. Alan O’Sullivan of This is Money said that they use: “a complex ‘behavioural algorithm’ to weed out those potential clients with unsustainable borrowing patterns.” Just 15% of first-time applicants are currently accepted.

You can get the cash until payday that you urgently need as the duration of a direct lender cash advance can be for between 1 and 30 days. A new customer can immediately borrow up to £400. Once your “trust rating” improves, you’ll be able to get up to a £1,000 of Wonga money in the future.

They send the Wonga payday loan directly to your bank account within minutes and you’ll pay 4214% APR until the debt is repaid. The cost of borrowing is considered to be usury, but they aren’t hiding anything from you. Despite the eye-catching headline interest rate, they may still be cheaper than a bank charge.

Repaying Wonga Cash or a Direct Lender Cash Advance Early

If you’re in a position to repay the money you owe early, you can do so as the agreement is totally flexible. If you pay back your Wonga money prior to the due date, you’ll pay less interest. For example, borrowing £150 for 30 days will cost you £51.51 in interest. Pay it back after 10 days and it’ll cost you just £20.84.

Whether you pay back your Wonga cash early depends heavily upon your personal circumstances, but it’s nice to have the option should a bit of extra cash come your way. In order to repay the loan early, you’ll need to log in to your account so you can make a payment to them.

Is There Really a Wonga.com Scam?

Contrary to the claims of certain critics, there is no scam. They are a legitimate company that’s 100% transparent in terms of what they offer the customer. You may consider the terms of Wonga loans to be unfair or usury, but they certainly aren’t hiding anything from you.

After scrutinizing the terms of the agreement, you need to decide whether you need Wonga cash or whether sites like Wonga are more appropriate. If you have a very bad credit history or are currently out of work, a different direct lender cash advance may prove to be more suitable.

Unable to Repay Wonga Payday Loans?

If your circumstances change, you should call their collections team on 0844-842-9109 between 9 am and 10 pm, Monday to Friday. They’ll discuss your options, including the possibility of extending your Wonga payment plan by up to a month. Interest will continue to accrue on the outstanding balance for up to 60 days.

Call for Student Loans in Africa: Supporting Less Advantaged Students to Access Higher Education

Posted on May 12, 2017 in all aboard

Uganda is set to join East Africa counterparts Kenya and Tanzania to provide loans to students to study in Higher Institutions of learning.

Uganda’s Ministry of Education and Sports is considering giving students joining university loans to pay fees as one of the ways to increase equitable access to higher education. The Minister of Education and Sports, Geraldine Namirembe Bitamazire told the Parliamentary Committee on Social Services on Tuesday that this is part of the 10-year Education Sector Strategic Plan.

“Our target is to increase access to higher education. Having increased access to primary and now secondary education, it is important that we start planning how to increase access to higher education,” Bitamazire said on Tuesday.

Less Advantaged in Africa need Loans for Education

The minister’s announcement follows calls by academicians attending the Women Affairs Ministers Meeting (WAMM) in Kampala to governments and universities in Africa to consider giving student loans in order to increase access to higher education by disadvantaged groups like women, the poor and those from rural areas who find it hard to compete equitably for the 5, 000 government scholarships in the now 5 public universities of Makerere, Gulu, Mbarara, Kyambogo, and Busitema.

Presenting a paper on Affirmative Action and Financing Women’s Education, Prof. Joy Kwesiga, the Vice Chancellor of Kabale University said that student loans can be an effective avenue to enable bright students from rural areas, poor families and females to get higher education.

Some people however see the latest move by government as an excuse for its planned decrease to fund higher education in favour of primary and secondary education.

Others however argue that apart from ensuring that the beneficiaries of higher education and training meet part of their education in the face of limited resources at government’s disposal, student loans promote equality of opportunity to qualified students irrespective of their background circumstances.

Best Form of Affirmative Action in Education

“Student loans are a fair institution to finance bright but disadvantaged students to access higher education. Governments and Universities can provide bank guarantees and ways of claiming back the money. They can work with the private sector to find work for those who get the loans so that they can pay back the money,” Kwesiga told in an interview.

A Visitation Committee instituted by President Yoweri Museveni last year to find ways of improving education in Uganda’s Universities also recommended that government should introduce the Student Loans Scheme immediately.

“An equitable standard loan scheme based on those operating successfully in counties such as Ghana, UK, Canada and Kenya would ensure access to university education by all qualified students irrespective of their income,” the committee said in their report submitted to President Museveni recently.

Neighboring Kenya has been running a University Students’ Loan Scheme (USLS) which benefits both students studying in government and private universities. But some people are worried that Uganda’s experience with the Entandikwa Scheme where people countrywide were borrowed money and they never paid pack might replicate in the Student Loans Scheme.

Ensuring Education for Less Advantaged in Africa

During the 8WAMM, Cornelia Muganda, from the Open University of Tanzania says that they are already working on providing student loans in order to enable females and other disadvantaged students to get university education.

“In addition to student loans, we also run a bridging programme where we train women and people from rural schools who didn’t get direct entry to university so that they can be at par with others. These end up performing better than those who gained direct entry because they were from better schools,” Muganda said.

Prof. Kwesiga says that as most affirmative action policies to increase the number of females, the poor, and those from rural areas have become unpopular for not giving opportunity to all and many times benefiting the already advantaged, a student loans scheme is needed to ensure the disadvantaged access higher education.

The Charge for Using a Credit Card Abroad Soars: Higher Card Fees for Those on Holidays Abroad

Posted on May 12, 2017 in all aboard

UK holidaymakers’ now face a fresh wave of card fees when using their debit or credit cards abroad. uSwitch.com claim that £22.4 billion will be spent on overseas credit transactions. This comes after British taxpayers have had no option but to pay for the incompetence and inherent greed of banks. It is important to be aware of the costs of credit transactions before buying abroad.

How Much Does Using a Credit Card Abroad Cost?

The overwhelming majority of providers are now charging a card fee for using a debit or credit card abroad. Whilst Abbey National and Royal Bank of Scotland each charge £1.25, Halifax charges as much as £1.50 for each credit transaction. Louise Bond, of Uswitch said: “With an average charge per debit card purchase of £1.13, netting the industry £148 million per year, more and more providers look set to jump on this lucrative bandwagon.”

Banks Cash-in on Overseas Credit Transactions

Nationwide once advertised the fact that card fees wouldn’t be charged to customers when buying abroad, but even they have started to cash-in on credit transactions outside of Europe. Latest figures from Uswitch.com show that UK holidaymakers’ will now be charged a 3% fee for using their credit card abroad. International credit transaction fees are due to net the banks approximately £754 million this year, representing an increase of 6% compared to last year.

What Are the Fees on the Use of Credit Cards Abroad?

Lloyds TSB – 2.95%

Halifax – 2.95%

Barclaycard – 2.75%

Thomas Cook – 2.5%

Nationwide – 1%

Post Office – Free

As it stands, the Post Office is the only provider not to impose card fees for either overseas credit transactions or cash withdrawals from an ATM. UK holidaymakers are advised to use the free service of the Post Office to encourage other financial institutions to amend their policy.

Credit card fees have already increased costs for UK holidaymakers’. Factor-in these costs when picking up a bargain or considering switching to the Post Office. If making a withdrawal from an ATM, make a larger withdrawal to minimise fixed card fees. This is clearly preferable to making a succession of small withdrawals.