Most people would just like to know if one hundred day loans is a scam, this is discussed in some detail here, but for simplicity i will try to explain a little more about them.
The company is legitimate as previously discussed, but do you get scammed by using their service?
The simple answer to this is no, but because they are a broker of loans rather than a provider of loans the potential is there to be scammed by one of the companies that they recommend to you. Searching the internet currently reveals no bad experiences of consumers using them, but the following is good advice to make sure you are covered from fraud and unscrupulous practices.
1. Always use a secondary email address because they solicit your email to lenders that may not have the same high practices as they do. As some customers have noticed you can receive a large amount of payday loan offers to your email address. So if you do not want to receive lots of email, sometimes considered to be spam, then do not use your primary email address.
2. Before signing the dotted line and giving your approval to a lender always check the validity and legitimacy of that particular company, by checking complaint boards and consumer complaint websites, you can use these useful resources to do just that, here, here and here.
Friday, 21 October 2011
Calculating the true cost (APR)
Payday loan costs are high as already discussed, but the main problem when taking out a online payday loan over one hundred days is the transparency of the fees associated with it.
A detailed analysis of how to calculate the costs of a payday loans is provided here.
To calculate the APR so that you can compare loan offers you need to do the following.
APR is a really good way to compare the charges of different payday loan providers, it is very hard to compare loans in any other way.
Depending on the loan period and company, payday loans can cost from 50% to over 2000%! So make sure you do this simple calc.
A detailed analysis of how to calculate the costs of a payday loans is provided here.
To calculate the APR so that you can compare loan offers you need to do the following.
- Write down the amount you wish to borrow - i.e $300
- Write down the total amount of charges you will incur - i.e. $50
- Write down the loan period - i.e. 100 days
- Divide the charges by the loan amount - i.e. 50/300 = 0.16666
- Multiple the answer by 365 days - i.e. 0.16666 x 365 = 60.83333
- Divide the answer by the loan period days - i.e. 60.83333/100 = 0.6083333
- Multiple this by 100 to get the APR - i.e. 0.6083333 x 100 = 60.8% APR (Annual percentage rate)
APR is a really good way to compare the charges of different payday loan providers, it is very hard to compare loans in any other way.
Depending on the loan period and company, payday loans can cost from 50% to over 2000%! So make sure you do this simple calc.
Legitimacy of one hundred day payday loans
The legitimacy of payday loans and particularly one hundred day payday loans is the main thing most people consider before taking out these loans. Some people believe that payday loan companies are glorified loan sharks, whilst other people consider them to be lifesavers and valuable money lending companies.
The difference in opinion is mainly due to your personal situation, hence people that have high quality credit ratings and have easy access to low interest loans from the mainstream banks are more likely to consider payday loans as predatory bankers.
Whilst someone that has a poor credit rating is most likely to consider them life savers, when in dire financial distress because they are the only way to get money without checks being carried out on your credit record/history.
100dayloans.com is the original payday loan company that introduced payday loans over a one hundred day payment return period. There are many copycat companies and fake start ups, but 100dayloans.com was the first and that company is what this blog is analysing, but are they legit?
The legitimacy of this company sometimes comes into question because they frequently change the visual look of their homepage, i am not sure why any company would want to do this, but they do and as of the time of writing this post the homepage has changed three times in as many weeks, so on appearance this does not bode well for the companies legitimacy.
However just because they flip the look of their website homepage, does not necessarily mean they are fakers, to the contrary my research has shown that they are a perfectly legitimate company.
Reasons for legitimacy
They are one of the most popular website based loan companies, currently ranked 11394 most popular site in the US by alexa research data.
Legitimacy of payday loans according to the Consumer Federation of America
The website set up to assist US consumers of payday loans is http://www.paydayloaninfo.org/ they state the following....
So as you can see they strongly believe that payday loans are expensive and that they carry a high risk of becoming trapped in a payday loan cycle.
As mentioned previously these are obviously well known facts, but try telling that to someone with a bad credit record that needs to feed their kids and doesn't have the financial means to do so.
The site does have some very good advice, learn how payday loans work here, check the legal status of payday lending in your state here and how to get consumer help here.
The difference in opinion is mainly due to your personal situation, hence people that have high quality credit ratings and have easy access to low interest loans from the mainstream banks are more likely to consider payday loans as predatory bankers.
Whilst someone that has a poor credit rating is most likely to consider them life savers, when in dire financial distress because they are the only way to get money without checks being carried out on your credit record/history.
Is 100 Day Loans Legit?
100dayloans.com is the original payday loan company that introduced payday loans over a one hundred day payment return period. There are many copycat companies and fake start ups, but 100dayloans.com was the first and that company is what this blog is analysing, but are they legit?
The legitimacy of this company sometimes comes into question because they frequently change the visual look of their homepage, i am not sure why any company would want to do this, but they do and as of the time of writing this post the homepage has changed three times in as many weeks, so on appearance this does not bode well for the companies legitimacy.
However just because they flip the look of their website homepage, does not necessarily mean they are fakers, to the contrary my research has shown that they are a perfectly legitimate company.
Reasons for legitimacy
- They have a verisign trust seal on their website, when you click through it actually works! (Verisign are one of the leading site verification companies)
- They have a contact phone number that works
- They have a customer service email address that works
- They are who they say they are (whois lookup is the same as the address on their website)
They are one of the most popular website based loan companies, currently ranked 11394 most popular site in the US by alexa research data.
Legitimacy of payday loans according to the Consumer Federation of America
The website set up to assist US consumers of payday loans is http://www.paydayloaninfo.org/ they state the following....
Payday loans are extremely expensive cash advances that must be repaid in full on the borrower's next payday to keep the personal check required to secure the loan from bouncing. Cash-strapped consumers run the risk of becoming trapped in repeat borrowing due to triple-digit interest rates, unaffordable repayment terms, and coercive collection tactics made possible by check-holding.
So as you can see they strongly believe that payday loans are expensive and that they carry a high risk of becoming trapped in a payday loan cycle.
As mentioned previously these are obviously well known facts, but try telling that to someone with a bad credit record that needs to feed their kids and doesn't have the financial means to do so.
The site does have some very good advice, learn how payday loans work here, check the legal status of payday lending in your state here and how to get consumer help here.
Eligible States Of 100 Day Loans
One hundred day loans are available to people that live in most states, below is a comprehensive list where you can apply to get one (where they are available). Also please note that not everyone can get one of these loans, there are some restrictions for those that work in the military.
To contact one hundred day loans you can use their customer support email which is as follows: admin@100DayLoans.com
Email response time is 24-48 hours and their customer support is available from 7 a.m. to 7 p.m. EST (Monday - Sunday).
You are eligible to apply for a one hundred day payday loan if you live in one of the following states
Alabama, Alaska, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and Wyoming.You are not eligible to apply for a one hundred day payday loan if you live in one of the following states
Arkansas, Arizona, Georgia, Oregon and West VirginiaTo contact one hundred day loans you can use their customer support email which is as follows: admin@100DayLoans.com
Email response time is 24-48 hours and their customer support is available from 7 a.m. to 7 p.m. EST (Monday - Sunday).
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