Quick Cash Loan Myths
MYTH : Quick Cash Loan providers charge outrageous rates.
REALITY: Payday advance fees typically cost less than customers' alternatives.
- Typically, bounced check fees at your bank may cost 3 times the cost of $100 dollar payday loan .
- The APR on a quick cash loan is many times lower than other customer alternative
- $100 payday advance with $15 fee = 391% APR.
- $100 bounced check with $48 NSF/ merchant Fees = 1,251% APR
- $100 credit card balance with $26 late fee = 678% APR
- $100 utility bill with $50 late/reconnect fees = 1,304% APR.
MYTH: Quick cash loans always create a spiral of debt for the customer
REALITY: The majority of payday advance customers are responsible and have no trouble using quick cash loans. Those with dicipline realize these loans are closed - end, short term transactions with a one time flat fee.
- 66% use quick cash loans to cover unexpected short term cash flow problems at home.
- 34 % use these loans as planned expense
- 60% eithe used the quick cash loan one time and did not renew the loan
- Sudies show that 70% who use quick cash loans use them 1 time monthly or less.
- Studies by " The Credit Research Center" report that 14% who use quick cash loans do so 14 times or less annually
- Wisconsin Dept. of Financial Institutions reports 71% use 15 or fewer times.
- North Carolina Commissioner of Banks reports 73% use once a month or less.
MYTH: Quick cash loans prey on unsuspecting customers
REALITY: There are solid laws in place to protect customers from being taken advantage of. The overwhelming popularity of these loans as a discreet and dignified way to solve temporary cash flow problems speaks for itself.
- 70% utilize quick cash loans becaus of the convienence (fast, easy,etc..)
- 96% are fully aware of the charges they will incur. Most state they were quoted the fee as an APR
- Most believe that quick cash loans are useful ( 92%) only about 12% state they were dissatisfied with the service
- 33 states and D.C. provide balanced, responsible regulation of payday advance companies.
If your not sure you fully understand payday loans, you can review here - Quick Cash Loans
More Quick Cash Loan Information
When do I use a quick cash loan? - not sure when to use a quick cash loan?
How quick cash loans work - Think of it as advance against your salary - the cost being a steep interest rate, payable upon receiving your next paycheck.
How much can I expect to pay for a quick cash loan Think 'cost per $100 borrowed', not APR (annual percentage rate).