Are Payday Loans Worth It? Each one of you have sometimes faced monetary crisis especially at times of early exhaustion of salary. Sometimes monthly bills are left to pay because of the reason that your earlier salary has already exhausted on previous expenditures. While stuck in such problematic condition, one can trust upon payday loans to arrange speedy funds ahead of their next salary day. With that means, you are able to get funds before the next paycheck deposited in the bank account. Thus, lenders offering payday loans have done real favor to working class people to overcome their short term fiscal issues.
Over the past few years, payday loans industry is continuously heading the ladder of success. According to the estimated report, thousands of people take out these financial offers everyday to fulfill day to day requirements. However, several misconceptions and myths are surrounding payday loans that have made many consumers wary of applying for them. Listed here are some of the myths that pose major obstacles in the way of payday loans. Let’s check out some most favorable benefits of payday loans below:
Payday Loans are Bit Expensive in Terms of Interest Charges
This probably the most talked about myth associated with payday loans. It is a myth that high interest is charged under these loans. Some payday loans critics say that lenders want to consume every single penny from borrowers. As per this myth, it is stated that, an average salaried class person acquiring payday loans often lost quarters of their income in paying the interest charges.
The myth of high interest is not at all true. If that was the case, there was not possibility of payday loans industry rising up and people must have rejected to acquire this fiscal aid. The myth of high interest rate is a total false with regards to late payment charges. In case of not being punctual or regular in making loan repayment, then lenders will definitely charge higher amount from your side.
Myth of Payday Loans as a Credit Destroyer
Another myth that surrounds payday loans is that it adversely affects your credit score, but this is also untrue. This is a myth and proof is that no credit check is being performed by loan providers. This means to say that, payday loans are free from cumbersome credit checking process and the loan is also offered for bad credit holders.
It is an absolute myth that payday loans could destroy or negate your credit position. Credit check conducted by the lenders has the authority to make it looks good or bad.
Not Possible to Repay on Time
You find it as absolute myth surrounding payday loans is that they are difficult to repay by the loan seekers. Of course, it is quite difficult to make loan payment on time by the borrowers who misuse of loan repayment period and always ask for the extension that led to accumulation of huge amount of late payment fee and interest rate. But that does not mean, it is difficult to repay by the consumers who are punctual with their repayment.
Myth about Payday Loans to be used Only during Emergency
Yes, it is a true fact that, payday loans can be your best companion at times of facing unexpected arrival of expenditures and help you overcome the emergency. But this is not said in favor of payday loans being used only during emergency. For multiple occasions, you can opt for this fiscal aid like while planning for short trip with family, paying for festive mood and much more.
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