Securing a payday loan can be a daunting endeavor, especially for a first-timer. The various stigmas attached to the concept of payday loans might add to your sense of unease. Here is a break down of the common myths circulating about the payday loan industry:
Payday loan companies in Valdosta, GA charge a ridiculously high rate of interest
By providing an unsecured loan to a customer in need, an online payday lender is at considerable risk. Therefore, the interest rates charged by payday lenders are higher than those charged by banks. However, the interest rates of payday loans are very reasonable, at approximately $25 for a payday loan of $100. Also, the interest rate on a payday loan is dependent on the duration of the payday loan taken, and the faster the payday loan is repaid, the lesser will be the interest.
There is usually a plethora of hidden fees, which the customer is not aware of
Legitimate payday loans include flat fees, and provide a clear idea about the interest amounts they charge.
Payday loans trap you in an unending cycle of debt
Payday loans are to be used only to tide you over unexpected financial emergencies, and should not be used to manage existing debt. Through responsible lending on the part of the payday lender, and faithful and regular repayment of the payday loan by the customer, you can repay the payday loan on or even before the due date. This not only makes you free from debt, but also improves your credit rating.
Payday loans in Monroe, LA are not secure
Legitimate online payday lenders are committed to protecting sensitive financial information about every customer they serve. The bank account details you provide when registering for a payday loan are fiercely guarded from any unauthorized access, and every effort is taken to ensure that the information you provide is processed safely and discreetly.
Payday loans should be repaid by the next payday
Payday lenders understand that, even though the payday loans provided by them are quite small, you might have some difficulty in repaying the loan within a limited time-frame. Several payday lenders have provisions for easy repayment of the payday loans through instalments.
When in need, go to the bank
When you are in need of instant cash, banks will be of little help to you, since they involve exhausting paperwork, and long queues. The complexity of this process is compounded when you have a poor credit history, which leads to additional stress and worry. In an emergency situation, a payday loan spares you all the added tension and provides you with an instant solution to your financial worries.