Payday loans are also known as fast cash advances that charge high interest rates. Charging interest rates and service charges are what make bad credit payday loan companies strong and standing up until now.
But how can some lending companies offer loans with low interest rates? Searching through the Internet, you will see lots of offers from reliable direct lenders that guarantee the soonest approval of your application and some say that they have the lowest interest rates compared from other trustworthy lenders.
Depending on which state you are in, interest rates really differ. Some states have already outlawed no credit check payday loans as a whole, some have limited the maximum interest rate that a lender can charge and some states have no limits with regard to interest rates.
If your lender says that they charge the lowest interest rate, you might want to take a look further with other fees that they may be charging. Lending companies in states have found a loophole in laws where the annual percentage rate has been capped. So what they did was decreasing their APRs’ and change the deducted fees into service charges.
Looking into this information, one will think that these cash advance companies still operate the same way and only changed their means profit.
If you are really in need of immediate cash, instead of considering lending companies, why not try asking your boss or employer for the money you need? Some employers allow their employees’ cash advances which will still be deducted on your next paycheck. The good thing about this is that you don’t have to pay for extra fees.
There are also some companies who have unions or organizations for employees. They also offer cash advances but charge lower fees than those of same day payday loan companies. If you are not a member of any workers union, you can also search in your area for civic organizations that help consumers with their financial needs. This way, you can stay away from lending companies who will just trap you in their network of debtors.
You may have already heard several stories of borrowers who are now having a hard time getting out of the holes they have dug in because of lending companies. You wouldn’t want that to happen to you. To prevent this from happening, stay away from these kinds of lending companies as much as possible. There are lots of options you could choose from when you are in a rough fix.
Remember that you still have your family who will back you up in times of need. Don’t worry about disturbing them. No one will help you more than your family. It has been proven by other borrowers when they had no one else to turn to and they are already buried in debts from lending companies. One consumer has attested that he was deep in trouble with his lender. All he needed to do was ask help from his sister. In a blink of an eye, his financial problem was solved.
Aside from turning to family, you can also ask assistance from financial counselors who can give you sound advices about your financial situation.
Don’t be tempted by lending companies who say that they offer the lowest interest rates. What you should do instead is think and make lending companies at the very bottom of your list in choices for your financial needs.