In an era of fast-paced financial solutions, Lazer Money stands out as a prominent player in the lending industry, offering loans ranging from $2,050 to $5,000 with swift access to cash. While the allure of immediate financial relief is undeniable, this article delves into the critical aspects of Lazer Money's lending practices, shedding light on the potential pitfalls that borrowers may encounter when seeking short-term financial assistance from this lender. It's imperative to look beyond the surface appeal and examine the fine print of such loans, recognizing the implications that can impact borrowers' financial well-being in the long run.
What is Lazermoney?
Lazermoney provide small cash loans up to $5000. Their loan products are designed for fast approval and bad credit, meaning their costs are higher than traditional lenders. They specialize in providing quick access to funds, helping borrowers address various financial situations promptly. Whether it's handling unexpected expenses, consolidating debts, or covering essential costs, Lazermoney offers a flexible borrowing solution. However, potential borrowers should exercise caution and consider their financial circumstances carefully, as larger loans can accumulate higher interest rates and should be managed responsibly to avoid long-term financial challenges.
Who Owns Lazermoney?
Lazermoney is a subsidiary of Moneyspot. Moneyspot is an online loan provider that offers loans from $2050 to $5000. They are a very similar service to Lazermoney with similar fees. I do not know why they are two distinct businesses.
How does Lazermoney work?
Lazermoney is a payday loan. Payday loans are designed for maximum speed and efficiency. The application process is quick and largely conducted online, typically resulting in a same-day assessment, assuming all required documents are promptly submitted. A crucial requirement is the submission of your bank statements, which are vital for the loan application; failing to provide them may lead to loan rejection. Additionally, a credit check is part of the evaluation process. Interestingly, even with a poor credit score, loan approval is possible, provided you have no existing unpaid defaults.
Borrowers enjoy flexibility in choosing repayment terms, ranging from 2, 3, or 4 months. It's important to note that while longer repayment periods offer lower monthly installments, they often translate into higher overall costs. This is because, even though individual payments are more manageable, the cumulative interest payments increase over the extended duration of the loan.
Does Lazermoney do a credit check?
Yes, Lazermoney will conduct a credit chekc before lending to you. Every lender conducts a credit check as a standard part of the loan approval procedure. Nonetheless, possessing a flawless credit record is not an absolute prerequisite. Payday lenders are open to taking on the risk of providing loans to individuals with less-than-perfect credit histories, in return for the potential of higher fees and interest rates. Therefore, while they do examine your credit, they usually do not give substantial weight to a less-than-ideal credit history.
Does Lazermoney approve with bad credit?
Lazermoney have a reputation for being inclusive towards applicants with imperfect credit backgrounds. In contrast to the heavy reliance on credit scores by conventional lenders, Lazermoney Loans financial opportunities to individuals facing bad credit or less favorable credit histories.
Lazermoney will typically evaluate applicants using a comprehensive set of criteria that extended beyond credit scores, taking into account factors like income, employment status, and other financial details. This approach made them stand out as a more inclusive alternative compared to traditional lenders.
How long does Lazermoney take to approve?
LazerMoney is renowned for its rapid approval process, with numerous applicants receiving decisions in a remarkably short time frame. The specific duration for LazerMoney to approve an application may fluctuate based on variables like application completeness, the accuracy of provided information, and the prevailing volume of applications under review.
At times, LazerMoney may extend approval decisions within an hour of application submission. Nevertheless, it's crucial to recognize that individual experiences can differ, and approval timelines are not assured.
Does Lazermoney do Centrelink loans?
LazerMoney evaluates the potential for providing loans to individuals who receive partial support from Centrelink benefits. This applies when Centrelink benefits make up less than 50% of your overall income. It's essential to emphasize that being employed is a fundamental requirement for eligibility when seeking a LazerMoney loan.
Do Lazermoney do secured loans?
More than likely yes, Lazermoney will require security for your loan. They do not mention it on their website. However, most payday loan companies may require borrowers to provide security or collateral for their loans. This security serves as a guarantee for the lender, ensuring that they can recover their funds even if the borrower defaults on the loan. Common types of collateral might include personal assets like a vehicle, jewelry, or electronics. While offering collateral can make it easier to qualify for a loan and may result in lower interest rates, it also carries a significant risk for the borrower. If they fail to repay the loan, they could lose their collateral. It's essential for borrowers to fully understand the terms and consequences of providing security for a payday loan before proceeding, and to consider their ability to meet the loan's terms and conditions.
Lazermoney fees
Lazermoney fees expenses are divided into two main components:
1. Establishment Fee:
- Equals 20% of the loan amount.
2. Monthly Fees:
- Amount to 4% of the loan total each month.
There are also potential late fees to be aware of, which include a Dishonoured Payment Fee of $20.
Lazermoney interest rate
Lazermoney doesn't list and interest rate on their website, they only list the above fees. We can work out the interest rate from this information however. To calculate the annual interest rate on a loan of $2,000 with an establishment fee of 20% and monthly fees of 4%, you can use the following formula:
Total Cost = Loan Amount + (Establishment Fee) + (Monthly Fee x 12 months)
Total Cost = $2,000 + (0.20 x $2,000) + (0.04 x $2,000 x 12)
Total Cost = $2,000 + $400 + $960
Total Cost = $3,360
Now, to find the annual interest rate, you need to express the Total Cost as a percentage of the initial loan amount. You are paying $3,360 on a $2,000 loan. So:
Annual Interest Rate = (Total Cost / Loan Amount) x 100
Annual Interest Rate = ($3,360 / $2,000) x 100
Annual Interest Rate = 168%
The annual interest rate on this loan is 168%. It's important to note that payday loans often have very high-interest rates, making them an expensive form of borrowing.
How much can I borrow with Lazermoney?
With LazerMoney, you have the opportunity to borrow an amount ranging from $2,050 to $5,000, giving you a relatively broad spectrum of loan options to suit your financial needs. It's important to note, however, that in certain cases, especially when applying for a loan exceeding $2,000, LazerMoney may assess your financial situation and determine that a smaller loan amount is more suitable for your circumstances. This responsible lending approach is designed to ensure that borrowers are not overextended and can comfortably manage their loan repayments, thus promoting a more financially sustainable borrowing experience.
What happens if I miss payments with Lazermoney?
If you miss payments with LazerMoney, several consequences may follow. Firstly, they will typically charge you fees for late or missed payments, which can add to the overall cost of your loan. If the delinquent payments persist, LazerMoney may initiate debt collection procedures to recover the outstanding amount. Furthermore, if you used an asset as collateral to secure your loan, such as a vehicle or valuable item, there's a risk of repossession. This means that LazerMoney may seize the asset to cover the debt. It's crucial to be aware that these missed payments and associated collection actions can have a detrimental impact on your credit rating. A lower credit score can affect your financial standing and your ability to secure loans or credit in the future, making it essential to communicate with your lender if you face difficulties in meeting your payment obligations to explore potential solutions.
Can I repay my Lazermoney loan early?
One noteworthy advantage of payday loans is their flexibility when it comes to early repayment. Unlike many other lenders who may impose a penalty for settling your loan ahead of schedule, payday loan providers generally allow you to pay off your loan at any time without incurring extra charges. While most lenders levy fees for early repayment to compensate for the interest they would have otherwise earned over the loan term, payday lenders are often more lenient in this regard. This leniency stems from the fact that payday lenders have already generated sufficient income through their establishment fees, thus affording borrowers the freedom to repay their loans early without additional financial burdens.
Is Lazermoney a payday loan?
Yes, LazerMoney can be classified as a payday loan provider. This categorization is evident in their fee structure and interest rates, which align with the characteristics typically associated with payday loans. Payday loans often feature higher fees and interest rates compared to traditional loans, making them a distinct category of short-term, high-cost borrowing.
Lazermoney review: The Bottom Line
It's crucial to consider payday loans as a measure of last resort. These loans are notably costly and can potentially trigger a cycle of debt, where you initially turn to them to address a financial crunch, but the exorbitant fees associated with payday loans can exacerbate your financial predicament rather than alleviate it.