Welcome to Financing-USA.com - Serving People With Bad Credit

Mark from Myrtle Beach South Carolina was requesting a bad credit loan for $5000. He didn’t want a normal conventional loan with the bank (his branch being the Bank of America in downtown Myrtle Beach), but instead he was looking for a payday loan for $5000 that he could pay back at the end of the month.

He made it very clear that he was going to be inheriting $70,000 from his parents estate when it sold over in Orlando Florida. He was told by his parents lawyer that the money from the estate would be deposited into his personal checking account within 7 to 8 business days, so there would be no problem with him paying off a payday loan company within 28 days. We will calculate the effective APR on this payday loan at the bottom of the post.

Mark has a full-time job as a baggage handler at the Myrtle Beach international Airport, and at the same time he has some monthly self-employment income coming in as well.

As a baggage handler he makes a gross income of $3040 each month, and his self-employment income makes him between $800 and $1000 a month. So his total income is fairly close to $4000 a month. So no real problem with paying all of his bills on time. The whole reason he wants this loan for $5000 is to pay for his parents funeral, memorial, and burial costs. This is rather expensive, and there is no way he could find the money from his own line of credit, and he doesn’t have any credit cards to speak of. He used to have a Visa card and an American Express card, but he let that go six months ago when he decided to get his personal debt load down to a reasonable level. It worked, and he is much better off for it when it comes to his personal finances.

Unfortunately Mark doesn’t have the time to go around and beg for money from the local banks in Myrtle Beach and surrounding areas, and he has to get this $5000 really quick. Unfortunately, Mark’s parents didn’t have any suitable life insurance in place so that all of the burial costs and funeral costs would be covered. So many people don’t put money aside for the day of their demise, and leave the burden of the costs to their family and loved ones. This is exactly the situation this applicant found himself to be in.

Legal Limits for South Carolina Lenders

It is well-known that there are not payday loan companies in South Carolina that will lend more than $1000 or $1500 to applicants, because of the very fact the payday lending laws of the state don’t allow it. This goes for most states in the USA. So what Mark really needed to find was a willing lender that would lend him the money privately, and he didn’t really care about the interest rates on the money due to the fact that he would have plenty of money to pay off the loan at the end of the four-week term (the 28 days). He was willing to pay the highest APR levels out there, and frankly he didn’t even care if the lender was legal or not. He was even looking at illegal lenders such as the different loan sharks in South Carolina. Not advisable, but he was trying to do it anyway. He really just wanted to get everything looked after, and he didn’t have any siblings that could afford any money to help with the burial, and funeral costs. He is is an only child.

Using the FUSA Application Form

Mark used our site to put in an application (application form below) so that our different private lenders could review his request for financing. There was one lender that operates in Garden City, SC who was willing to do business with him. He put his application in for $5000, and instructed the lenders that he was willing to pay a huge interest fee payment on the note. He even suggested that he would be willing to pay $35 for every $100 borrowed. This is a massive fee for any payday loan and quite illegal in the state of South Carolina. However, since it was a private lender that only operates online, no authorities were any the wiser.

Never Accept Upfront Fees

We instructed him (as we instruct all of our users) to never take a loan out with a lender who asks for upfront fees before funding the loan. This is very very important. We let all of our users know that they should never accept any kind of upfront fees for any kind of loan, from any kind of lender. If you are approached by a lender who is asking for upfront fees, please use our contact page to e-mail us the name of the lender, how much you are trying to borrow, and the fees that they were trying to charge. We will then remove them from our databases, and strike them permanently from our system. We do not tolerate lenders who try to take advantage of people who are temporarily in dire straits. We do not tolerate scammers and dishonest lenders – we have a zero-tolerance policy regarding this. This goes for borrowers as well. If we hear about a borrower that defaults on their loan, we take action to block them from our system as well. Changing names and locations won’t help either, as we have a very sophisticated system for tracking borrowers and lenders.

Mark’s Loan Approval

As it all turned out in the end Mark did borrow the $5000 from the lender who lived in Garden City, and he did receive his estate inheritance of $70,000 about 11 business days later. Mark paid back the lender the principal amount of $5000, plus the associated fees in the lending agreement. What was unique about this loan was that this was a cash loan. Mark simply drove from Myrtle Beach down to Garden City to see the lender in person. This happens more than you would think, because we have lenders that use our database from all over the United States – we have over 3000 private lenders in all of the continental United States, including Guam, and Hawaii as well. So this means that lenders can actually have the opportunity to meet the borrowers in person, and the money can be lent by cash or by check. All of the documentation for these private loans varies from lender to lender, but one thing remains the same – it’s a deal of trust between both parties. Note: We take no responsibility in the goings-on between borrowers and lenders. 99% of all loans that are proffered are repaid by the borrowers, and the lenders make a handsome return.

Avoiding The High-Cost Loan Cycle

Keep in mind that it is very important you don’t use high-yield, high fee, short-term financing with private lenders unless you have a lump sum of cash coming in to cover the costs of the principal and the interest. You don’t want to get caught up in some cycle of default, and habit-forming high-cost borrowing – there is never a happy ending when you get yourself caught in the vicious cycle of high APR loans.

Most lenders will screen out potential borrowers who are likely to default on their loans, and they can be very exclusive and very discerning when choosing who to lend to, and who not to lend to. This is why we ask all of the borrowers on our site to use as much detail as possible in the pre-application form. Most of our lenders will not even respond to what we call “thin” applications. Thin applications are those that have very little information. Often the borrower will simply enter in how much money they want, and leave one sentence such as,

“I really need the cash fast”.

That kind of application will get no response from the lenders that use the FUSA database. The lenders typically want to deal with serious minded customers who are very sincere and forthcoming with their information.

More Application Info = More Lender Response

Mark was smart enough to put allot of information in his application form regarding his monthly income, and the reason why he wanted the loan. He was serviced by this lender in Garden City the same night that he made the application. Of course, he made sure not to put any of his personal information such as his last name, social insurance number, his drivers license number, and his ABA numbers from his checking account. He was also smart to make sure that his spelling and grammar were acceptable too – this actually makes a difference with lenders, because they want to know they’re dealing with an adult who is serious about getting approved for a loan.

In total, the amount of time it took between Mark’s online application, and when he got the money in his account, was 29 hours approximately. Not bad when you consider he even drove down to Garden City from Myrtle Beach. We asked him how much he paid in fees on the loan and he told us it was $35 for every $100 borrowed. Below you will see the effective APR calculation;

$5000 Payday Loan Calculation

• Principal of Loan = $5000
• Fee Per $100 Borrowed = $35
• Term Length = 28 days

$5000 Payday Loan Costs and Effective APR:

• Total Paid Back to Lender: $6750
• Total Fees Paid to Lender: $1750
• Total Effective APR on Loan: 455%

We encourage you to seek out an alternative to a payday loan or cash advance, due to the extremely high interest and penalty fees.

Short Term Private Loan Calculator