3 Paycheck Advance Myths Every First-Time Borrower Needs To Know
Whether you are running short on funds due to an unexpected bill or you are just needing a little cash to carry you over until your next payday, a paycheck advance is one of the most convenient options you have. With no credit check, simple requirements, and quick service, you can fill out a loan application and have your money almost right away. However convenient cash advance loans can be, there are a lot of myths about these services. Here are a few of the biggest myths and the real facts you should know as a first-time borrower.
Myth: It is easy to get stuck in a cycle of payday loans.
Fact: The only way it is easy to get stuck in a continuous cycle of payday loans is if you are not responsible when you initially borrow. Any time you accept a loan, you have to make sure that the amount you will have to pay back on your next pay date will not be more than what you can afford to fully pay off. If you do have to rewrite the loan, make sure that you only accept a lesser amount. By following this pattern, you will eventually get the loan amount down to what you can completely pay off and prevent getting caught up in a rewriting cycle.
Myth: Payday advance companies charge high finance charges on loans.
Fact: The finance fees that paycheck advance companies charge are usually regulated by state governments. For example, in the state of Texas, a lender can only charge $11.87 per $100 on a 14-day loan, according to PaydayLoanInfo.org. Keep in mind, however, that in addition to paying a finance charge on what you borrow, you will also be responsible for any interest due on your loan.
Myth: The only type of loan you can get from a payday lender is a cash advance.
Fact: Many paycheck advance companies actually offer different types of loan products that can be suited to meet their customers' needs and demands. For example, some companies offer no-credit installment loans, which allow you to pay off what you borrow over several payments instead of just one lump sum.
If you are considering visiting a paycheck advance lender for the first time, make sure you take some time to get the facts about the services that they have to offer before you borrow. By doing so, you will be well on your way to being a responsible customer and get the opportunity to take full advantage of their services. Contact a paycheck advance service for more information.