For every problem, there is a solution. But sometimes people create a problem for every solution. When there is urgency for quick cash not available that is a problem, and a payday loan is a solution.
Despite helping people out who are strapped for cash payday loans often get a bad rap. So it’s time to debunk some of the myths that people have about these kinds of loans.
Payday loans are only for the poor:
This popular myth circulates because loaners don’t usually carry out a credit check on the borrower. The truth of the matter is that borrowers have a steady source of income. Loaners have to guarantee that they will be paid back. If you’re unemployed, you might not even qualify for a loan. Sometimes, self-employed people also don’t qualify, as the loan program is meant more for employees with a steady income. Within this same myth is one that claims you cannot get a loan if you’re disabled. Actually, people with disability are more likely to take out disability payday loans. In doing so, they would need to present documents such as birth certificate, medical records (proof of disability), and other requirements most likely similar to other loaners except that, disabled loaners can present their disability checks for an alternative proof of income.
Interest rate is too high:
This myth is always taken out of content. The high interest you hear about concerns the Annual Percentage Rate (APR). To put things in perspective, if you buy a car for $20,000 with a 7.5% interest rate on the loan, you would pay a total of $20,000 for the car plus $4000 of the interest rate for the loan. But because payday loans are designed more for short-term periods, when you put the interest rate into content, it’s a reasonable rate.
The persistent myth claims that once you sign the dotted line, you’ll be hit with hidden fees and different terms of condition that you were not told about. Payday agencies are monitored by state and federal laws. Everything is explained to you before you borrow and loaners cannot just add new conditions along the way.
The play on emotions:
People take out a loan because they’re struggling with a financial issue and the myth goes that loaners take advantage of this and use your struggle to strike up a deal. If not that, then loaners will somehow create an emergency for you so that you take out a loan. Besides that this just doesn’t make any sense at all, the truth is that no matter how careful you are with money, emergencies actually do pop up. There’s no need to create a make believe one. Alongside of that, borrowers are the ones who approach lenders, and not the other way around.
Fast cash today
There is no denying that financial situations arise where you would need cash and need it now. Don’t let the myths about payday loans get in your way to take one out. Read more about payday loans to get the entire picture. Search online and you can find a reputable payday loan company that will help you.