Payday loans have come a long way since it came into being. And it has also come by many different names like quick loans, short-term loans, cash loans, etc. Speedy Cash payday loans have proven to be quite beneficial for borrowers in need of emergency cash but don’t have it at hand. And for the people who have used them, it is safe to say that these loans can be quite handy and get you out of stressful financial situations.
Then again, like with any other booming business, the payday loans also come with its fair share of myths and misconceptions that have tainted the image of the business. Many potential borrowers would refrain from applying for and taking these loans due to these myths. Most of which are blatantly false. This post aims to debunk some of the most common payday myths most people believe today.
1. Payday loans have high-interest rates
Here, it is crucial to note that the rate of interest is always different from one lender to another. So, it is possible that you may be unlucky enough to land a loan with a lender that imposes very high-interest rates. Then again, it is also possible to find a lender that offers you the right rates of interest for your loans. In some instances, if you have difficulty finding a lender with the right interest rates for your needs, then you may need to seek the help of a broker. This will help to cut down your loan search time considerably. Not to mention that you will also find the loan with the perfect interest rate.
2. Payday loans have hidden fees
Not true. The Consumer Credit Act 1974 and the FCA require that certain disclosures like charges or fees be disclosed to the customer. This information must be made transparent and clear to the customer from the application stage. This will ensure that the customer does not get into any hidden fee traps with the lenders. The borrower also has to carefully read through all the documents before agreeing to sign any contracts. So, no. There are no hidden fees when it comes to payday loans.
3. You must have good credit to get a payday loan
In as much as most lenders tend to favor borrowers with average to excellent credit, some lenders specialize in and work with borrowers with poor credit. So, do not fret or hesitate to make a payday loan application if you have bad credit. Who knows? You may be lucky and get loan approval. Even your financial state will be under more scrutiny, and the interest rates and other fees will be slightly higher, you will have gotten what you needed, the emergency cash.
4. Payday loans offer one-sided benefits
It is true that sensitive situations touching on money can have many people have split opinions. But when you look at it from a literal view, you find that both parties benefit from the business. The borrower benefits in that he/she get the emergency funding to care for his/her needs. And the lender benefits from the interests and other forms of compensation from the repayment.
5. It is not easy finding a decent lender
Most borrowers believe that getting a good lender who is more likely to approve their application is time-consuming. But the opposite is true. it has never been easier to find a decent lender in the industry. Thanks to technology and the internet, hundreds of websites that specialize in payday loans are popping up. You can now make a payday loan application from the comfort of your home, office, and even while on the road.