Payday Advance Loans No Credit Check: Blessing or Curse?
Every month hundreds of thousands of people find themselves short on money. With no real options available for help, many of these people turn to one of the biggest scams around. You have heard of them, and probably received their spam emails. These sites, also known as payday loans no credit check or cash advance loans without credit check, make outrageous promises to reel in the needy and unsuspecting victims. What you probably don’t know is that these “businesses” have illegal interest rates and guidelines. This seems to be common knowledge but state laws have not closed them, and they make more money off innocent people every year.
Payday advance loans look good on the surface. They can be like throwing a life preserver to a drowning man. It is these circumstances that make it easy to prey on people who are a step away from being homeless, or having their utilities shut off, or just needing to buy food. Good credit is not required to secure one of these and it can be done right at your computer. The cash advance loan was made just for those who are in a financial mess, for whatever reason.
Before you go racing to one of these sharks, you need to understand that you will be required to pay back much more than you borrowed. Also, be sure to read all the fine print before you sign something you will not be able to handle down the road. Ask yourself if this is the only way out for you.
Some of these loans are easier to get than others, but there are basic requirements to be met before obtaining one. There are usually age requirements, a job or some other income to repay the loan, and references that can be contacted if you miss paying back the loan. A savings or checking account is the most important requirement. There needs to be somewhere for the funds to be deposited.
If you truly feel you have no other alternative, at least do your research on these payday loan companies. You may be able to find one that will have some advantages for you. The companies that operate under the same lender need to be avoided, even though they will offer to loan you much more money. Borrowing too much money will be just as bad as being broke in the long run. Overextending yourself will only require you to pay all that money back within just as short a time frame. This situation will have you just as broke as when you took out the loan.
The application can be completed and submitted online. Once your application is received, the lender will set about verifying the information provided. You will most likely get a call at your job to verify that you actually are working and will be able to repay the money. It is a bit invasive, but people with bad credit see this as an easy way to secure a personal loan quickly, usually within 24 hours.
When it is time to repay the loan, the lender will withdraw the loan amount plus interest from your savings or checking account. That money needs to be in the account when this day comes or fees will start to grow. The lender will also begin taking the fees from your account without even telling you.
Cash advance, or payday loans, or whatever other name they go by can seem like a port in a storm. Sometimes, though, they can simply be a leaky boat with the holes temporarily plugged, causing you to just sink again.…
Disadvantages of Online Payday Loans
1.The biggest disadvantage of most if not all types payday loans whether online or at a store are high interest rates. The typical lender charges $25 for every $100 advanced to you. This is due to the fact that there is no credit check so you are presumed high-risk.
2.Most companies deposit the funds directly into your checking account. The funds become available the next day, which is not good enough is some situations such as electric or water disconnection. Also, an existing overdraft situation in your checking account could cause the funds to be “swallowed”.
3.Ideally, you should pay off the loan in full on the very next payday. But this is not always practical as some other needs may crop up. In that case you often have the option of just paying the interest and extend (rollover) the principle. You could find yourself in a vicious cycle after that.
4.You don’t have much say as to what you will get. The company decides what to advance you based on your income, checking account transactions and other variables. The amount you get may not be what you’re looking for.
5.There are many scam payday loan companies online with impressive-looking websites. Some of these scam companies will sneak obnoxious conditions in the agreement and you could find yourself owing several times what you borrowed.…