Wisconsin: Payday Loans

[dgridley]

Curious as to whether anyone has ever gotten a Payday loan and what was your experience with it?

My buddy seems to be buried with them and the high interest rates don't seem too appealing.

Better to get one locally or online?

[j10asen]

Originally Posted by dgridley

Curious as to whether anyone has ever gotten a Payday loan and what was your experience with it?

My buddy seems to be buried with them and the high interest rates don't seem too appealing.

Better to get one locally or online?

they are all blood suckers feeding those who need it the most but cannot afford to pay for it.

we need more people to help those learn to budget their money.

now if they provided a sevice like that and helped someone get back on their I would say ok but it is all about GREED.

[dgridley]

Easy to see it is about exploitation when you see the loan places all situated in the poorer sections of town.

There are a few sites that do peer to peer loans online but most won't accept you if you have poor credit, which brings us back to the payday loan places

[dgridley]

I got a small ($160) payday loan today, my first ever, because: 1) my buddy got a $20 referral bonus and 2) I have no credit history and they report to all 3 credit bureaus so it will help build my credit.

But, I have to pay back $250 on a $160 loan.. ugh!

[dgridley]

My buddy cheerfully explained that if I paid back a portion of my loan, I would be eligible to extend it with yet another loan.. no thanks.. in fact, I'm making two payments on it this time around.

[Bps1]

That stuff doesn't really build your credit much. Creditors want to see long term payments and accounts in good standings. You'll go broke trying to establish credit that way. Credit cards are great even if they are secured. You don't have to use them much, just enough to keep the accounts "active". Zero balance looks better then any balance. Some require as little as one transaction a year. You want to keep CCs for a long time, easy credit. A large part of your credit score is based on how much open credit you have and what percentage of it you are using. The less you use the better. Auto loans and even leases work good. Leasing is fine if you plan to get another new car in a couple years anyway or if you will be buying the lease out in the end. There's kind of a game you can play there. Credit unions are more likely to give you legitimate small loans. Maybe you already own a car that is eligible for a loan. If you can get low interest rate loan on it then that's also a good way to build credit. Paying off loans early does NOT help you. They want to see a track record so at least set up something and pay on it for a year.

[dgridley]

My problem is NO credit, good or bad.. so as this particular payday loan place reports to all 3 major agencies, it should help a bit..

Originally Posted by Bps1

That stuff doesn't really build your credit much. Creditors want to see long term payments and accounts in good standings. You'll go broke trying to establish credit that way. Credit cards are great even if they are secured. You don't have to use them much, just enough to keep the accounts "active". Zero balance looks better then any balance. Some require as little as one transaction a year. You want to keep CCs for a long time, easy credit. A large part of your credit score is based on how much open credit you have and what percentage of it you are using. The less you use the better. Auto loans and even leases work good. Leasing is fine if you plan to get another new car in a couple years anyway or if you will be buying the lease out in the end. There's kind of a game you can play there. Credit unions are more likely to give you legitimate small loans. Maybe you already own a car that is eligible for a loan. If you can get low interest rate loan on it then that's also a good way to build credit. Paying off loans early does NOT help you. They want to see a track record so at least set up something and pay on it for a year.

[Bps1]

Originally Posted by dgridley

My problem is NO credit, good or bad.. so as this particular payday loan place reports to all 3 major agencies, it should help a bit..

Very minimal. Like I said, you'll go broke this route. We all had NO credit at one point, almost none of us went to a payday loan. I was a licensed banker not too long ago, just offering advice from experience. Best first step is that secured cc. Check out Clark Howards website for a list of the better ones. Easy to get ripped off if not well informed.