Looking for a loan at Moneyboat? A consumer needs to read a warning that coats the top of the website. It essentially states that late repayment can lead to major financial dilemmas, potentially worse than the one that led a consumer to the payday loan in the first place. They also need to get through a credit check and some other information proving details to ensure the borrower’s identity. These things are good. They show validity. A company claiming “no credit check” and “no information needed” may have something up their sleeve. There is a reason they aren’t looking for much of anything at all.
Forthrightness in the warning and the details required can be encouraging. This kind of transparency is revered in the payday loan industry because it seeks to undermine a lot of the present stereotypes. Payday loans can be unfair to consumers. They can be non-transparent, and contain hidden fees that only surface when a consumer attempts repayment. Payday loan providers are working in a new industry that lacks regulations, and they know it. This fallacy has created a whirlwind of bad news and bad options for consumers. What are payday loans, and what are they not?
Payday loans are: a temporary patch from one financial dilemma to consistency and repayment. A payday loan should be repaid quickly. The individual borrowing should know where the funds are going to come from to repay the loan in a timely fashion. A payday loan may be invaluable in paying the mortgage when a check-issuing company makes a major error. It can help in paying for major car repairs that are needed now, while using an already set-aside future paycheck for repayment.
Payday loans are not: A bridge from one financial dilemma to another. They are not to be used as long-term installment repayments, like a business loan or personal loan. They should not be used to pay a mortgage because there are other avenues to try in this regard. They should not be used to pay credit cards, swapping one debt for another.
A payday loan can the answer, but it often isn’t. Consumers can make the best decision in this regard by being informed on what a payday loan is, and how it can help in certain circumstances.