If you go onto your preferred news website and type in the keywords “payday loan” – you’re more likely than not to come across a large number of articles regarding the negative impacts and factors of them. But have you ever considered that as with much of the internet, this isn’t gospel truth and could very easily be somebodies opinion? That’s right. There are as many myths online about payday loans as there are truthful posts, so how can you know what to take as truth, and what to ignore? Well today we’re hopefully going to help you with that by busting some of the popular myths behind payday loans.
They’re Only Used by People Who are Struggling
One of the most common myths about payday loans, is that they’re only used by people who struggle financially, and perhaps don’t have very much money. You might be surprised to know, that this absolutely isn’t the case.
In fact if you looked into the statistics of online payday loans with no credit check and who they’re applied for and used by, you’d see that the vast majority of people who apply for them are in full time, salaried jobs. It’s simply the case that they’ve found themselves with a little too much month at the end of their money, and they have an expense they need to make. These people are likely to pay the loan back on their next pay day, and then hear no more about it. Simple.
They Negatively Impact Your Future Credit Score
Okay, so this is a big one. If you have a clean credit score and want a short term loan, applying for payday lending is completely viable – yet a lot of people are reluctant to do it just in case it negatively effects their future credit score.
The fact of the matter is, so long as you stick to the rules and regulations of the lending itself, it can actually improve your credit score – particularly if it’s currently sitting in a, let us say, negative position. Payday loans can actually be opportune in this sense, as so long as you only lend a small amount and pay it back on or before the date it’s due, then your credit score will improve. The only way that a payday loan can affect your score negatively, is if you don’t pay it on time. Only borrowing what you can afford to pay back is the key.
They’re Difficult to Apply for
For some bizarre reason, a lot of people seem to think it’s difficult to apply for a payday loan – when in fact, it’s one of the easiest financial lending schemes to sign up for.
Whereas with a lot of loans it takes appointments, and weeks of being approved and checked out – payday loans are quick and simple, and require no credit check whatsoever (which is why, sometimes, the wrong people use them for the wrong reasons, and they get a bad reputation). It’s as easy as finding the right company, filling in an online application form which takes between ten and fifteen minutes at most, and waiting for the money to arrive in the bank within twenty four hours. Simple.
Remember though, just because it’s easy, doesn’t mean it’s monopoly money. Treat it as seriously as you would any type of loan.
There are ALWAYS Hidden Fees
So you’ve probably read somewhere that with payday loans, there are ALWAYS going to be hidden fees, right? Well again, this is a myth.
Indisputably, there are some organisations out there that can’t be trusted, and that ultimately end up giving others a bad name. These companies will often have hidden fees and terms and conditions that are easy to overlook, but end up landing the borrower in a sticky situation.
However, there aren’t always going to be hidden fees. So long as you do your research and read the terms, conditions and small print thoroughly, you shouldn’t come across any issues.
They’re Impossible to Pay Back
Last of all, but certainly not least, people seem to think that payday loans are impossible to pay back.
Because they’re so easy to get, used incorrectly, it is possible to keep on lending and end up in a downwards spiral of debt. However, so long as you use them sensibly, they’re easy to pay off.
The golden rule is only borrow what you can afford to pay back by the next payday – or agreed date. If you stick by this rule, do your research and remain vigilant, your payday loan experience should be a positive one.