The CashCall Loan Company is an alternative to a local payday loan. You may have seen television commercials for these loans, offering thousands with only an easy phone call or online form. These short term loans come with high fees and exorbitant annual percentage rates (or APRs). That said, the rates are publicly available, lower than most payday lenders, and the company does operate in a more ethical manner than many similar loan options. The company was founded by Paul Reddam, who also founded the very successful DiTech mortgage company.
What are the differences between a CashCall loan and a traditional payday loan?
These loans are available at cashcall.com. The website offers clear and comprehensive information about their lending policies, procedures and interest rates. This is a distinct improvement over payday lenders who often hide their interest rates among terms like fees and charges. While transparent and public interest rates are an improvement over many lenders, and in fact, CashCall’s prior policy, keep these interest rates in mind.
They also offer substantially larger loans than the average payday lender, with interest rates ranging from 29.26% APR on a $10,000 loan for an exceptionally qualified borrower to rates of 99.25% APR on a $2,600 loan. There is an additional $75.00 fee for each loan. A 3 year, $2,600 loan will end up costing the borrower over $9,000. Borrowers should be aware that CashCall loans are likely not protected under payday lending laws in states that have these laws.
Unlike payday loan lenders, these do a credit check before loaning money; however, their standards are not necessarily comparable to your local bank or credit union. Not all applicants will qualify for a loan. Legally, higher interest rates are acceptable when higher risk is taken, so the interest charged by CashCall is not considered predatory lending.
The overall market for this companies loans also differ somewhat from the market for payday loans. The average CashCall borrower is not necessarily lacking basic funds to live, but is likely living beyond their means and thus, in need of extra cash. If you need extra funds, you might be much better off to consider changing your lifestyle or borrowing from your local bank, perhaps securing the loan with real property. Interest rates will surely be substantially lower. It should be noted that even your average credit card would be a better financial choice than this type of loan.
Unfortunately, offers that seem to good to be true generally are. Easy access cash via a simple signature loan will leave you worrying about money for years to come. There is no quick fix solution to money problems, not even a fast cash loan.