Payday loans are often thought of as a bad way to loan money but that’s not true. The negativity about payday loans is because of the critics who tend to spread false rumors about it. The truth is that payday loans serve as a great way to tend to your short term financial difficulties. They are very easy to repay and are getting extremely popular, as per experts at checkintocash.com.
However, still many people stay away from them due to the myth surrounding payday loans.
Short term loans like payday loans are not only convenient but are also approved in an instant and the requirement to get them is next to nothing. You need to be employed and have a bank account. That’s the only requirement when you look at it.
If you are running a business and have financial difficulties, you should also consider option for payday loans.
Without much ado, let’s have a look at some myths surrounding payday loans and let’s debunk them all:
Payday Loans Are A Trap
It is often interpreted that loan companies tend to trap people who are in dire need of money. That’s untrue. Firstly, payday loans are very easy to repay which is why the chances of being defaulted are very low compared to other types of long term loans.
Secondly, no one is forced to apply for a payday loan if he/she is having a tough time or going through financial crisis. A person who needs instant cash simply applies for a payday loan and there is no such thing as a payday loan company taking advantage of needy people.
This is nothing but a myth since not a lot of people are aware of payday loans and what they actually do.
They Come With Huge Interest Fee
Again, nothing but a myth. The reality is that payday loans are the only loans that involve minimum interest rates.
The time given to repay a payday loan is normally around 2 weeks or a month in some cases. This means that you have 15 days time to pay the amount of money you borrowed along with interest, which is around 15% of that amount in most cases.
This may look a lot, but when you compare it to other options, you actually end up saving money.
However, trouble may begin to surface for those who fail to repay the loan on time. If you fail to payback your loan on time, you might have to deal with extra charges.
They Are The Least Benefiting
If you think about it, no other loan is approved as quickly as a payday loan. Moreover, the requirement to have a payday loan approved is much easier than other loans where one is asked to show proofs of property etc.
When applying for a payday loan, the lender doesn’t check your credit rating but only if you are employed and have a running bank account.
Apart from that, payday loans don’t make you wait for days to receive money, you get cash in your hands instantly.
Considering these factors, payday loans are far more convenient than other loans.
Loan Terms And Fee Is Hidden
The way how payday loans work is quite transparent. The fee that you are required to pay within the due date is disclosed to your when you apply for the loan.
Many people believe that loan companies hide terms and fee from borrowers but that’s not true. According to the “Truth in Lending Act”, the U.S federal law restricts companies from keeping the borrowers in dark regarding loan terms and cost.
Hence, you can rest assured that no hidden charges are involved when you apply for a payday loan.
Payday loans are easy to get and easy to pay and come with a lot of benefits.
That’s the truth about them.