Busting Myths about Payday Loans
Myth 1: Interest rates are extremely
high
This is not so. Rates are reasonable percentages for
the short term of the loan....
Myth 2: Your credit will somehow be
adversely affected
This is not true. The only way your credit is
affected one way or a...
Myth 3: You have to be employed to
secure payday loan
This is not true.
There are many lenders that will loan to
unemploye...
Myth 4: Payday Loan is Unregulated
and Has Hidden Fees
Numerous states have strict regulations concerning a
short term pay...
Myth 5: Payday advances a cycle of
debt
You should understand that a payday advance is not
meant to be a long term loan. I...
Myth 6: Payday Advances Take Advantage
of Poor, Military & Minorities
Payday advances are marketed toward subprime clients...
Myth 7: Quick Payday Loans are Predatory
Lenders
Payday loans fill a necessary component in the
economic world. Due to cre...
Contact us for Payday loan at:
www.1stratelenders.com
Know more about us at:
www.facebook.com/1stratelenders
www.twitter.c...
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1stratelenders.com Myths about Payday Loans

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Telling people about the myths surrounding Payday advance cash loans and showing the truth that counters those myths. It is time to clear the misconceptions surrounding payday loans.

Published in: Economy & Finance, Business
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1stratelenders.com Myths about Payday Loans

  1. 1. Busting Myths about Payday Loans
  2. 2. Myth 1: Interest rates are extremely high This is not so. Rates are reasonable percentages for the short term of the loan. The problem can happen only if you are not punctual or regular (if paying in installments) in paying. A payday loan provided by a reputable payday loan or cash advance company does not take advantage of people. If you allow a small loan to roll over many times not been responsible in repaying it quickly as required, you may end up paying more in interest to keep the loan active.
  3. 3. Myth 2: Your credit will somehow be adversely affected This is not true. The only way your credit is affected one way or another is through credit checks. Credit checks can lower your score if you are not careful. Payday loans require no credit check. Therefore nobody can meddle with your credit.
  4. 4. Myth 3: You have to be employed to secure payday loan This is not true. There are many lenders that will loan to unemployed people, as long as loan applicants have other means to guarantee repayment of this short term loan.
  5. 5. Myth 4: Payday Loan is Unregulated and Has Hidden Fees Numerous states have strict regulations concerning a short term payday cash loan. There are regulatory provisions that have legal consumer guides monitoring and controlling the maximum/minimum amounts received through a payday cash loan, as well as the length of time and interest rates. The payday cash loan facility is required by law to disclose any application fees, interest rates and other fees. No hidden fees. If you find that a local or web-based payday cash loan institution is not adhering to your state regulations, please contact your local police department.
  6. 6. Myth 5: Payday advances a cycle of debt You should understand that a payday advance is not meant to be a long term loan. It is not meant to function as a credit card or bank loan. It is meant to assist millions of American families with emergency needs. A payday advance is given only under the agreement that it will be paid off on the applicant’s next payday. Regulations have been pushed to allow payday advances to be rolled over, but not indefinitely. This will help to keep the payday advance applicant from being stuck in a long term, high interest rate loan.
  7. 7. Myth 6: Payday Advances Take Advantage of Poor, Military & Minorities Payday advances are marketed toward subprime clients without a distinction in employment or culture. In fact, these loans are marketed toward those people earning between $25,000 and $50,000 per year. Payday advances are meant for hard working adults with an immediate emergency need that cannot be satisfied through bank and union loans. According to Penn, Schoen & Berland Associates, researchers have found that only 3.69 percent of military have taken out a payday advance in the last five years – and only 1.18 percent have an advance outstanding. That is extremely low. No discrimination against military personnel or anyone. The fact is that a payday loan is marketed and supported by middle class customers who have continuous employment, an active checking account and need emergency funds until their next payday. Payday advances are not meant for persons who cannot afford to remit payment on the payday advance.
  8. 8. Myth 7: Quick Payday Loans are Predatory Lenders Payday loans fill a necessary component in the economic world. Due to credit card debt, it often becomes impossible for middle class people to receive emergency quick cash for emergencies, medical expenses or other needs that may arise between payday. Furthermore, since quick payday loans are only short term cash advances that are not based on your credit, this adds an additional service to the middle class person.
  9. 9. Contact us for Payday loan at: www.1stratelenders.com Know more about us at: www.facebook.com/1stratelenders www.twitter.com/1Lender www.linkedin.com/company/1stRateLenders
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