Payday loans today
Payday loans were very rare before the 80’s. The bank only offers a certain amount of money that is used for investments and not suitable for short term or sudden use. Aside from that, they go look for a lot of collaterals and proof of finances to see if the borrower is capable of repaying the loan. By that time, since people are unable to borrow a small amount of money at banks, pawnshops have been the easiest access for fast cash before but if you have nothing to pawn, loan sharks are the last option for your financial issue.
Loan sharks were on the trend before. They do their lending by extending loans to desperate borrowers who give them post-dated checks intended to pay the cost of repaying the loan plus the interest. Causing the borrowers to be more broke because of their high rate charges that is almost equivalent to the borrower’s monthly salary. Loan sharks violated the usury laws in that time and their modus became a major culprit rather than being beneficial.
This loan shark issue lasted until the early centuries where the loan shark modus became “legal” in the way of being underserved by conventional lenders. To avoid infringing of the usury law, euphemisms such as “cash check services” are used instead of the word “loan” by conventional leaders to cover up their outlawed actions. Making their services less suspicious and less prone to court complaints.
Today, as the marketing world expanded, along with this is the financial needs of an individual and the needs of covering a typical kind of financial issue such as emergency expenditures. The marketing growth came along with a lot of finance companies such as lending companies that are highly competitive to each other. In order to gain more patrons, they offer different kinds of loans that is easier to get approval and more convenient for the borrower by having less interest rate and repayment time. This includes the payday loans today.
Payday loans today are way different compare to the time before. Unsecured loans like this tend to help borrowers gain a solution in covering their financial issues instead of adding more burden. They make it convenient for the borrower to access the loan that even if you have a bad credit history, you’ll still have a big chance of getting approved by the lender. Loans like this are meant to cover up certain money issues including repayment of other loans, that’s why having a bad credit rating still guarantees you to have the loan. It demands minimum requirements, you don’t have to pass financial proofs and list of assets in order to get a payday loan, having basic information and meeting their criteria for accessing a payday loan is enough for you to get approved. It’s literally fast cash because you can receive your money as quick as 1 hour after you fill up the form and get approved. Also, it can be accessed easily and almost anytime and anywhere. Since technology came in to our lives, payday loan applications can be done online. Just fill up the following information needed in the form and wait for their response, finally when you get to be approved you may get the cash that you want and use it freely.
However, payday loans can cause you further problems instead of solutions if you’re not well educated to this. Even though it’s not as high as the loan sharks fees, payday loans’ interest rates are higher compare to the loans offered by the banks. The rates are ranging from 10%-30% of the borrowed amount, depending on the length of the time of repayment. The said rate is included in the loaned amount that needs to be returned along with other miscellaneous charges. So the money that will return to the lender is quite massive than the money that was been borrowed. They also have additional fees such as late pay penalties that will add up to the amount of the payer’s repayment. The later the payment the higher the penalty will be. Also, payday loans offer a limited amount of money, so it doesn’t solve big financial issues. The amount of money that can be borrowed to a payday loan is up to £5000 only, so when you are trying to get a larger amount than that, payday loans aren’t suitable for you. Despite of its easy access, your request for a payday loan can still be rejected, lenders will judge you if you are capable of returning the money that you are trying to borrow, so if they don’t find you qualified to get the amount that you’re asking, they’ll still going to reject your application. So if you are planning of getting a payday loan, you should consider this cautions and be aware of this kind of issues.
Get the security of a business line of credit today
Qualify for a line up to $100,000 in minutes