Today I’m going to be discussing some of the most demystify myths about payday loans in 2021.
Because, when most hear of the term payday loan, there’s usually a certain ring that comes to it, and the word – loan, in general, has so many individuals in doubt always, as to whether or not it is really what taking.
And today, we are going to break down each of these myths to help you to better understand how valuable payday loan can be for you in 2021.
Let’s dive right in!
Demystify Myths about
Payday Loans that You Should Know About
It is obviously no news that the term payday loan has a certain ring to it.
The term loan also has a lot of people thinking:
They take back way more than they actually give. They are a bad spending habit, take loans and be buried in debt…
And a myriad of other thoughts that are definitely not in favour of payday loans.
But what if I told you that all these are just mere myths?
Myths to keep you confined to your income…
Payday loans are solely and entirely in your best interest. They’re there in cases of emergencies not to keep you in debt.
The Covid-19 pandemic was a sudden wave of a virus we had never experienced before. It caught a lot of people off guard, shut down a lot of businesses, and strained a lot of people’s income.
People were locked at home during the lockdown, away from their sources of livelihood for unending months; people lost their businesses that were doing just fine, not because of their incompetence, but because of a pandemic completely out if their control.
During these times, payday loans were a breath of fresh air, they desperately needed salvation.
There are so many myths about payday loans; but they are all basically loan sharks – they are just in to bankrupt you, ruthless with their recovery, and so much more…
In the south-south region of Nigeria, the people suffer an annual flood every October that is caused by the release of water from Lake Chad and the rainy season combined.
Many times, the weight and intensity of this flood cannot be predicted.
People can’t just leave their homes every October without being sure that the flood will get to them that year.
On another hand, they can’t just sit and wait to be submerged in water. Either ways, it is a whole lot of uncertainties and no one is ever fully prepared mentally and financially.
Getting a new place on such short notice requires a lot of money. This is a problem that could easily be solved with a payday loan. Payday loans are here to make your life a lot more comfortable. It can be accessed at any time by any adult and is the best option for emergencies.
Payday loans provide a solution to people with very low income earning and on such short notice – in 24 hours, your needs could be met without stress, no collateral and no much background check, all you really need is an honest and reliable heart and self-discipline to refund at proposed times.
Payday loans have too many advantages for you to explore, too many that make it hard to ignore:
Very unlike the usual loans we’re used to that takes forever to apply for, payday loans can take just five minutes to apply for depending on the amount applied for and your general and regular source of income, there is almost no minimum to the amount you can apply for as payday loans understand the need for emergencies in the household and so forth.
Local loans require a whole lot of things like your proof of income, social security number, photo ID and probably run a background check to be completely sure you can pay back the loan you’re about to take.
Generally, all you need or require to apply for a payday loan are: to be at least eighteen (18) years old, have a regular source of income, not necessarily a job but regular, a government issued ID card or social security number and an active bank account.
#3: Payday loans are less strict
When applying for a payday loan, the lenders do not check your credit history. But when applying for a traditional loan, the strictness of their background check could even discourage the individual subjected to such scrutiny and even when the individual subjects themselves to such scrutiny, there is a possibility they might not actually get their requested loans.
Basically, it doesn’t even matter if you have a bad credit history, they won’t check it.
#4: No collateral
If you thought this could not get any better, I’m about to disappoint you in the best way possible…
Payday loans to do not require collateral to be solid!
Many people call it an unsecured loan but I’d like to think it’s a bonus on the part of the borrower. With payday loans, you don’t have to worry about loan sharks or collateral damage. It is easy and in your best interest.
Now I’d Love to Hear from You:
What are some myths you’ve heard about payday loans and loans in general?
What actually got you really interested to take up your first payday loan?
Either way, let me know by leaving a comment below!
We are here to assist you in finding a reliable moneylender to solve your financial troubles without much hassle. Using our experience in the field, we will provide you the required guidance to apply and get a personal payday loan in less than 24 hours.
Short term loans are emergency credit loans that have been designed for short term financial issues.
The loan amount is small and limited to a fixed upper limit. The loans are exclusively created for the short term and will become expensive burdens when extended and used for long-term purposes.
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The lender will also need to perform other verifications such as confirming the social security number, national ID, driving license number, or any other identification documents submitted by the applicant.
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We do not have the required information pertaining to the rules, regulations, and terms used to calculate APR by individual lenders.
APR calculations vary from one lender to another, one state to another. They also depend on various factors that decide the APR of a loan. The credit rating of the applicant can be one of the reasons.
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We highly recommend our customers to contact the lenders to enquire about the possibilities of late payment.
In the case where late payment is considered possible, the late payment fee is applicable and implied.
The laws of the state and the federal govern the cases of late payment fees and vary vastly.
All details related to the procedures and costs associated with late payment are disclosed in the loan agreement.
Customers should carefully review the terms before signing the contract.
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In case of nonpayment of the loan, both financial and nonfinancial penalties may be implied.
The charges for nonpayment and late payment are disclosed in the loan agreement.
Additional actions related to nonpayment’s such as renewals or extensions can be implied upon given consent. The terms of renewal are disclosed in the individual loan application. Additional renewal charges may also apply.
Lenders may perform debt collection practices.
The practices are adjusted as per the Fair Debt Collection Practices Act and any other federal or state laws related to the industry to ensure that the customer or the loan applicant does not end up being a victim of unfair trade practices.
Most of the lenders do not use outside debt-collecting agencies to recover the loans. They use in-house methods to collect the debt from the applicants.
Late payment and nonpayment of the loan might have a negative effect on the credit rating and further decrease the rating.
This may cause them trouble over time. Lenders may report to credit bureaus such as Experian, Equifax, Transunion, etc. In such instances, the late payments and nonpayment’s may be recorded and remain in the records for a certain period.