The concept of payday loans has actually been around for quite a while. There used to be a time when a boss would give their employee an advance on their paycheck if they needed it. Life has gotten a little more complicated since then, and payday loan companies have grown in size – and notoriety.
But there are some common misconceptions people have about a payday advance loan. Recent news stories have made it seem like companies that give a payday advance loan are predators who prey on the working poor. And that’s simply not the case. Here are some of the more common myths about a payday advance loan – debunked.
All payday advance loans are scams.
Payday advance loan companies are legitimate businesses. Lawmakers simply wouldn’t grant business licenses to companies that were scam artists. The Truth in Lending Act makes it illegal for a lender to charge hidden fees if they fail to provide loan terms up front. In addition, most states require lenders to pass a certification test and receive a license in order to perform payday advance loans.
People get conned into massive fees and interest rates.
The Truth in Lending Act made sure that people who provide a payday advance loan tell the borrower about any financing fees and interest rates. This means that the borrower is provided with a written breakdown of up-front fees, interest, future fees and interest rate changes. All of this information is provided before anything is signed. Empower yourself by reading all of your materials and you won’t be fooled into anything.
Payday advance loans are designed to trick borrowers in a cycle of debt.
Payday advance loans are fast fixes to the uncertainties of life. Costly life events almost never happen on payday. A payday advance loan is set up to fill in those in-between gaps, helping people pay their debts honorably and in a timely fashion, no matter how unforeseen those debts are. A payday advance loan is meant for emergency circumstances, not for ongoing expenses or habitual use.
Payday advance loans target low-income households.
A payday advance loan is available to anyone, regardless of income, credit score or other socio-economic factors. In this way, payday advance loans are non-discriminatory. A person with a very high income and a person with a very low income can both get one through the same simple, nonjudgmental process. Some critics have pointed out that payday advance loan brick-and-mortar stores are located only in poor neighborhoods. But OnlinePaydayAdvances.com is everywhere – because we’re online.
You need a good credit rating.
Unlike most types of loans, a payday advance loan does not require a credit check. Your credit score does not come into play at all. That means you’ll be treated the same whether you have high credit, low credit, or no credit. OnlinePaydayAdvances.com’s lenders don’t see your credit rating at all.