Government agencies and private institutions have been giving out warnings against the use of instant loans. Their main concern is the fact that online loans even from a legit company can trap people in a never-ending cycle of debt.
The main reason why cash loans could be a problem is because the borrowers are forced to prioritize their payments once it turns out they have borrowed more than they can handle with little money left for other daily needs. They are then forced to borrow again to satisfy those needs. This could herald a cycle of debt which for someone with a limited income would be hard to get out of.
The Borrower’s Profile
This problem is made more acute by the fact that typical borrowers applying for instant payday loans are people with bad credit standings or a limited income. They usually resort to payday loans with no credit check to supplement the limited means they have. Since the terms are very short, lasting a few weeks only, their financial situation would stand little chance of improvement the moment that they borrow. With most of the money from their paycheck going towards the payments too little is left for their daily needs.
The borrowers are left with very few options. They cannot go to the banks because they would be refused in view of their bad credit standings. Other lenders would probably not accept their applications either. They are forced to borrow money from legitimate lenders despite very high costs. However there are some advantages of payday loans with no faxing as well.
There is no credit check
Payday loans are faster to get than any other financial product
There is no faxing involved
The application process is very convenient since it is done online
In reality, there are always some options left to try the only problem being that they are not as easy to get as payday loans with no credit check and no faxing. Why bother with strict requirements and lots of paperwork when you can get the money you need on the Internet in no time at all? Here are some alternatives that you ought to try out first:
Some banks are starting to offer short term loans now
Credit unions have excellent terms and conditions that are favorable to the borrower
If you need the money to pay off an upcoming bill, try to negotiate with the creditor first
Borrow from someone that you know
Try to earn the money you need by selling something or by taking up extra work
Find out if you can get a cash advance from work
These options are a lot harder to do than applying for a loan on the Internet. If you do it properly though then you would avoid having to pay high interest on what you had to borrow.
APR Disclosure Some states have laws limiting the Annual Percentage Rate (APR) that a lender can charge you. APRs for cash advance loans range from 200% and 1386%, and APRs for installment loans range from 6.63% to 225%. Loans from a state that has no limiting laws or loans from a bank not governed by state laws may have an even higher APR. The APR is the rate at which your loan accrues interest and is based upon the amount, cost and term of your loan, repayment amounts and timing of payments. Lenders are legally required to show you the APR and other terms of your loan before you execute a loan agreement. APR rates are subject to change.
Exclusions Residents of some states may not be eligible for some or all short-term, small-dollar loans. Residents of Arkansas, New York, Vermont and West Virginia are not eligible to use this website or service. The states serviced by this website may change from time to time, without notice.
Credit Implications The operator of this website does not make any credit decisions. Independent, participating lenders that you might be matched with may perform credit checks with credit reporting bureaus or obtain consumer reports, typically through alternative providers to determine credit worthiness, credit standing and/or credit capacity. By submitting your information, you agree to allow participating lenders to verify your information and check your credit. Loans provided by independent, participating lenders in our network are designed to provide cash to you to be repaid within a short amount of time. The short-term loans are not a solution for long-term debt and credit difficulties. Only borrow an amount that can be repaid on the date of your next pay period. Consider seeking professional advice regarding your financial needs, risks and alternatives to short-term loans. Late Payments of loans may result in additional fees or collection activities, or both. Each lender has their own terms and conditions, please review their policies for further information. Nonpayment of credit could result in collection activities. Each lender has their own terms and conditions, please review their policies for further information. Every lender has its own renewal policy, which may differ from lender to lender. Please review your lender’s renewal policy.
Cash advances are intended for short-term financial relief and do not constitute long-term financial solutions. Consumers facing debt and credit difficulties should seek out debt and credit advisory help. Consumers are encouraged to consult the federal, state, and local governements to learn more about the risks involved with cash advances, local laws and regulations governing cash advances, possible loan alternatives and recent developments in their state. Consumers with credit difficulties should seek credit counseling. Residents of New York, Arizona, Georgia, Vermont, Virginia & West Virginia are not eligible to apply for a cash advance on this web site.