14 Aug, 2019

Busting Myths About Payday Loans

Just like any other industry, the short term and payday loans industry is also plagued with a variety of myths. In fact, as it rises in popularity, the myths surrounding it tend to rise along. However, if you dig deeper, you might find out that payday loans are tremendously useful for people who face a shortage of cash between their paydays, or need cash for unexpected events. Let us unveil the most popular myths regarding payday loans to you: Payday Loans Trap Borrowers In A Vicious Cycle Of Debt Borrowers […]

0
Published by:
ADMIN

Just like any other industry, the short term and payday loans industry is also plagued with a variety of myths. In fact, as it rises in popularity, the myths surrounding it tend to rise along. However, if you dig deeper, you might find out that payday loans are tremendously useful for people who face a shortage of cash between their paydays, or need cash for unexpected events. Let us unveil the most popular myths regarding payday loans to you:

Payday Loans Trap Borrowers In A Vicious Cycle Of Debt

Borrowers who are eager to take short-term loans often hold back because of this myth. The truth is that as long as borrowers manage to repay the loan back on time, they won’t essentially have to worry about any sort of debt.

Before borrowing, borrowers must know the repayment date, and figure out if they would be able to repay the loan on time. Moreover, payday loans should be used to sort out unexpected sudden cash needs, and must not be used to pay off existing debt. If the short term loan is used wisely and repaid before the due date, the borrower will be free of debt instantly.

Payday Loans Charge Terribly High Interest Rates

People don’t understand that online payday lenders themselves face considerable risk when they provide a short term payday loan to a person in need. Thus, it is justified if payday lenders offer loan at a greater interest rate than banks. Even so, the interest rate charged is quite reasonable, but it mostly depends on the duration for which the payday loan is taken. The sooner people pay off the debt, the lesser interest rate they have to pay.

Payday Loans Have Security Issues

It is always recommended to read the privacy policy and the loan terms of payday lending companies to ensure that you are taking a loan from a secure and credible company. Identity theft and payday loan scams are indeed quite common, however, this doesn’t mean that legitimate lending institutions don’t exist. Legitimate payday lenders, guarantee the confidentiality of your credit details, and have diligent mechanisms in place to protect your financial data from any unauthorized access.

Only Those Who Have A Good Credit Can Apply For A Payday Loan

One of the best things about securing a payday loan is that payday lenders usually do not take credit history into account. That’s one of the reasons why payday lending companies have greatly risen in popularity; securing a payday loan is much easier than getting a loan from a bank. Payday loans are secured against people’s salary or wages, thus the credit risk is eliminated for payday lenders this way. That’s why lenders don’t look at your credit history when you apply for a short term or payday loan, they instead look at your likelihood to pay off your loans.

Payday Loans Come With Exorbitant Hidden Fees

This is not true. Payday loans include flat fees, and always provide complete information about the interest amounts and any other charges associated with the payday loan. If you have any reservation, you must talk to a credit lender in detail to find out about the charges you want to beware of.

Beware of the myths surrounding the payday loans industry and apply for a short term loan with Extra Cash Loans whenever you are short on cash.

NO COMMENTS