Payday loans aren’t as popular as the other loans. Mortgages, home equity loans, and most car loans are examples of secured debt. Payday lenders are easy to find and are available both online and in brick-and-mortar storefronts. Your banker can advise when it makes sense to close your quick payday loans account and open a new one to get control of loan payments and stop escalating Non-Sufficient Funds (NSF) fees generated by repeated attempts to collect on the check held by the payday lender.
Even if the cash store that releases loans is open today, the bank will transfer the funds to your credit account or credit card on the next day. Table 5 presents the main reasons that customers report using a payday loan instead of a traditional bank loan.
More than half of all payday loan users have no education beyond high school. The best way to avoid payday loans is to build a solid financial foundation so you can handle financial emergencies without turning to debt. However, if a borrower chooses a payday loan with no credit check, then he will avoid falling into this trap.
The payday lenders are very transparent in their dealings with the borrower, so much so that they will inform the borrower the interest rate that is charged on the payday loans for bad credit and the amount that will be withdrawn from the borrower’s salary once it has been paid.
A credit card cash advance, although not cheap, costs a fraction of what using a payday loan does. Most financial experts will also recommend spacing out any applications you make that would require a lender to check your credit history. They are loans people get when they have very bad credit.