5 Payday Loan Myths Debunked

Whether you need money for emergency home repairs or to fix your car, Speedy Cash payday loans are a fast and easy way to get money for your most pressing needs. However, there are some misconceptions about this fast loan option.

1. Payday Loans Are Expensive

Perhaps you’ve heard people talk about payday loans and their high interest rates. Keep in mind that the interest rate varies from one lender to the other. Nonetheless, it’s possible to find a loan that has the right rate percentage that best meets your specific needs.

Most lenders charge a 15% interest rate on the amount you borrow. So long as the loan is settled on or before the due date, payday loans are cheaper than most credit cards.

2. Finding the Right Lender Takes Time

When thinking of applying for a payday loan, most people think that the process will take a lot of time, but this is far from the truth.

There are many websites designed specifically for this purpose. These online resources make finding the funds you need fast and easy. More so, they help applicants compare all the payday loans available. This comparison can help you find the best one that suits you.

In addition to that, these websites help you save time. You don’t have to spend hours researching all over the internet to find the best deal. These websites give you speedy access to many decent lenders within the shortest time possible.

3. Payday Loans Are for Low-Income Earners

This is not true. Payday loans are available to everyone, regardless of location or income level. Payday loan lenders do not target the vulnerable or a particular sector of the economy. They provide services to people from different spheres of life.

However, since the majority of the financial institutions won’t provide loans to individuals with low incomes, payday loans become a viable alternative for this sector of the population. Ultimately, a payday loan is designed to give temporary relief to those who need help desperately, irrespective of social status or income level.

4. They’re Difficult to Pay Back

One excellent tip to follow when opting for any loan is to apply for what you can afford. This way, you won’t face financial challenges when it’s time to pay it back.

The only time you might find loan repayment difficult is if the annual rate is too high. However, before lenders provide you with the financial assistance you seek, they run affordability checks. Nonetheless, it is advisable to perform thorough research before opting for a loan. After all, you know your financial state better than anyone else.

5. Payday Lenders Use Aggressive Tactics If You Can’t Afford to Pay Back the Loan

Just like every other financial institution, payday lenders don’t use aggressive tactics in order to get their money back should you be unable to repay in time. They cannot call you at work or harass you. Neither will they threaten to get you arrested.

Hopefully, you now have a new perspective on payday loans. They are a great way to tend to your short-term financial needs.