Get the Facts About a Payday Loan Online
Payday loans represent useful tools for people with urgent financial needs; however, many consumers wonder if a payday loan online is the best choice for them because of the many misconceptions they have heard. Not knowing the truth can cause many people to not take into consideration the practicality of payday loans.
Mass media has also played a significant role in the development of payday loan misconceptions due to stories that have become generalizations. PaydayNow.com does not fulfill the role of a lender; rather, we provide an easy, online application portal where prospective borrowers can get quickly pre-approved for a payday loan. PaydayNow.com simply facilitates the process between the borrower and potential lenders. Here are the most common misconceptions about a payday loan:
A good credit history is necessary in order to receive a payday loan online — FALSE.
This is true in the case of traditional loans, but in the case of a payday loan it does not apply. The process for getting the loan does not include a credit check. Moreover, a bad credit rating does not play a role in the determination of the rates and fees of your loan.
Payday loans are scams — FALSE.
The industry of payday loans is characterized by a continuous development. Payday loan providers are required, by law, in most U.S. states, to pass a certification test in order to have a license for providing these loans. Payday loans are regulated by laws and regulations in any state that permits them, thus they are legal.
There are excessive fees and interest rates associated with payday loans online — FALSE.
There is a federal law known as the Truth in Lending Act, adopted in 1968, which states that all loan providers have the obligation to disclose the key information regarding the conditions, rates, fees and additional costs of a loan in written form before the contract is signed. Therefore, all the information regarding the interest rates and fees is known to the borrower and he can choose not to sign the contract if the costs seem unreasonably high.
Payday loans online are responsible for leading people into a cycle of debt — FALSE.
A payday loan has higher interest rates than a traditional loan. This is why it should be contracted only to cover immediate expenses like house repairs, medical care, taxes, college tuition, bills to avoid penalties or reconnect fees, or other extraordinary events that take place. A payday loan online always has additional costs and it should be used only for urgent expenses. It should not be used as extra money or become a habit.
Only low-income families resort to payday loans — FALSE.
Every U.S. citizen or permanent resident who is at least 18-years old, has a job for at least 90 days and makes a minimum of $1,000/mo. after taxes, is eligible for a payday loan. Low-income families have fewer resources to fall back on in times of emergency, and may make use of these loans most often, but these loans are available to everyone who meets the minimum requirements.
There are some people who claim that that the offices of payday loan providers are deliberately situated in low-income neighborhoods. PaydayNow.com does not have any storefront offices; therefore, getting a payday loan online through our site is available to anyone with access to a computer.