Three Reasons You Shouldn't Avoid Using a Paycheck Advance Service
You may have thought about getting an advance on your next paycheck from a payday lender but have been hesitant to do so because of some of the criticism you have heard. The following are among the most common things you have likely heard, and why shouldn't pay attention to them.
Only poor people, with no access to banks, use this service
This is certainly not true. The typical person using this type of service is an individual with a middle-class income. In addition to the misconception of income, there is often an opinion that payday loan customers are under banked and have no access to bank loans. But this is simply not true. Most payday lenders require that you have a …show more content…
They are only for a couple of weeks and serve as an advance on your next paycheck. They are paid back in a single, lump sum. Because of this, you need to look at the fee that is added to the money you are borrowing to determine whether the loan is worth it. Only you can determine this. The interest rate is simply the wrong way to view a payday loan.
You can get hooked on these loans
Sometimes a person will not be able to pay back the loan when it is due. For this reason, many lenders will allow a customer to roll over the loan for an extended period of time. Naturally, this incurs additional fees. But this is no different than being late on a credit card bill, a car loan or even a mortgage payment. With credit comes responsibility. If you don't think you can pay back the loan with your next paycheck, you shouldn't take out the loan to begin with. Lenders offer to extend a loan as a service to their customers because unforeseen circumstances can happen in anyone's life.
The three criticism of payday loans mentioned above are unfair and to a certain extent, inaccurate. Although they are technically loans, most people use them as an advance on their next paycheck. It is not as common as it used to be for employers to offer advances to their workers, so payday lenders provide a valuable service to many working
You may have thought about getting an advance on your next paycheck from a payday lender but have been hesitant to do so because of some of the criticism you have heard. The following are among the most common things you have likely heard, and why shouldn't pay attention to them.
Only poor people, with no access to banks, use this service
This is certainly not true. The typical person using this type of service is an individual with a middle-class income. In addition to the misconception of income, there is often an opinion that payday loan customers are under banked and have no access to bank loans. But this is simply not true. Most payday lenders require that you have a …show more content…
They are only for a couple of weeks and serve as an advance on your next paycheck. They are paid back in a single, lump sum. Because of this, you need to look at the fee that is added to the money you are borrowing to determine whether the loan is worth it. Only you can determine this. The interest rate is simply the wrong way to view a payday loan.
You can get hooked on these loans
Sometimes a person will not be able to pay back the loan when it is due. For this reason, many lenders will allow a customer to roll over the loan for an extended period of time. Naturally, this incurs additional fees. But this is no different than being late on a credit card bill, a car loan or even a mortgage payment. With credit comes responsibility. If you don't think you can pay back the loan with your next paycheck, you shouldn't take out the loan to begin with. Lenders offer to extend a loan as a service to their customers because unforeseen circumstances can happen in anyone's life.
The three criticism of payday loans mentioned above are unfair and to a certain extent, inaccurate. Although they are technically loans, most people use them as an advance on their next paycheck. It is not as common as it used to be for employers to offer advances to their workers, so payday lenders provide a valuable service to many working