Some people are afraid of any kinds of lending and don’t trust any banks or credit companies. The same applies to services that suggest payday loans. There are many different reasons why people keep away from this easy and convenient way to get extra cash. Let’s explore the most popular myths of payday loans:
- Payday loans are for poor people only. Average borrower is a middle-class person with a full-time job and stable salary who just appears in an emergency situation and doesn’t have the extra cash right now. Lenders usually ask for the document on current income and active bank account before the approval. Of course to get a payday loan is easier than credit in the bank but cash advance services don’t approve anyone as well.
- You must have a good credit reputation. There are many online services where you can apply for a payday loan even with bad credit score. The only thing the lenders are concerned about whether you will be able to pay the money back at this definite period of your life. So your credit history doesn’t matter here at all.
- You will be in debts forever. There is no pure sense to think this way nevertheless some people do it. You get a payday loan in the necessary situation and then forget about it immediately after paying it back. Besides payday loans are usually small-termed ones, so they are paying back in one or two payments top payday loans companies
- There is always a hidden interest rate. Each service has its interest rate, but it’s never hidden. You should read the terms and conditions attentively or ask the responsible specialist in case of misunderstanding. As such kind of lending is short-termed, fees are normally lower than in other credit offers. You certainly will pay higher fees only in one case – if you miss the terms and default on your obligations.