So much bad publicity comes the way of a payday loan company, how can the business be thriving? Those who have never needed to take out a fast loan like them may just not understand. This misunderstanding tends to play out with the political battle over their regulation.
What misunderstandings are there about payday loans?
*All payday loans are done by predatory lenders. There are plenty of lenders who will not loan money to someone who does not earn enough income to pay it off.
*Do lenders prey on the poor? Many poor people do have hard times with money and try to get help from a short-term loan. There is a range of income levels represented by customers. Emergency money needs do not prey on the poor, they happen when they happen and they can happen to anybody.
*The APR on a short term loan proves how aggressive they are to take people's money. Payday loans are created to be short term. The loans are set up to be paid off on an average of two weeks. Two weeks is a far cry from a year. People, who end up paying for their loan through the course of a year, will be experiencing debt problems. Online short-term loans promote responsibility from both payday loan lenders and their customers. The loan is a business contract and both parties are responsible for holding up their end of the transaction.
There are many customers who do not take the time to shop for a respectable company. There are companies who will loan money to anyone no matter the income level. Since credit scores are not factors in lending, there is no history deterrence for those who fail to repay debt. Online direct loans are risky loans for the lender when doing business with customers who most often have bad credit. Let's face it, if a person has money in the bank, has family or friends with extra cash, or has an open line of credit somewhere else would not be using one of these loans without a specific purpose.
Take your misunderstandings or misconceptions and call a trusted lender to get the answers. You will find a lender who is willing to explain how the payday loan industry works. There are plenty of good companies which are willing to go the extra step in helping customers and potential customers. There would be no pressure to take out a loan by such a company. There is an understanding from responsible companies that payday loans online are not everyone's solution. Why would a lender put pressure on a person to take out a loan if they are unsure of the outcome? A lender who cares about customers will have qualification guidelines for direct payday loans. A potential customer will need to show proof of income and a good standing bank account. There is no credit check, but your bank account should be showing positive transactions.
Don't judge a book by its cover. Not all direct lenders are alike. There are fraudulent and predatory lenders, but there are also ones who follow guidelines and become a resource for those who need a money boost to get their finances back on track.
