Why Pay Day Loan Rates are Becoming More Competitive
Have you recently browsed the news and found that pay day loans are increasingly showing up in the headlines? It isn’t a secret that individuals and families are struggling to make ends meet, while looking for creative ways to make it through their toughest months.
In the olden days, men and women would trek to their local bank to take out small loans for financial emergencies. This isn’t happening as frequently in today’s world because most banks aren’t readily lending money. The result has been the public’s increased use of payday loans or cash advances. Because of the increase in demand, fees and interest rates on such loans are becoming more competitive. They have become so competitive that major banks are even considering offering similar loans (if they aren’t already).
Other Reasons Payday Loans are Gaining Momentum
- They don’t require credit checks. Traditional loans hinge on a consumer’s credit score, while payday loans utilize an upcoming pay check as collateral for the loan.
- A bankruptcy, poor credit score or foreclosure is no problem. Because the loan doesn’t hinge on one’s credit score, payday loans in Huntington Beach can help consumers pay their bills on time.
- Payday loans are instant. Unlike traditional loans that can take a few days for approval, payday loans are quickly approved and cash is provided same-day.
- Payday lenders can be easily accessed. There are many great payday lenders out there. It is very important to find one that you trust and is understanding of your needs.
What Is Required for Pay Day Loan Approval?
It is quite a simple process. All you have to do is prove you have a regular job and provide a valid state ID, your most recent bank statement, and a blank check. Carefully read the terms and conditions of the loan and make sure you can pay back the loan on your next payday. The lender will set up a direct debit from your account for the amount owed. If you fail to pay the loan back as agreed upon, you will be liable for additional fees and interest rates.
According to a recent MSN Money article, payday loan usage is expected to rise exponentially. The report also stated that consumers are increasingly leaving large bank and moving to credit unions. This trend will surely inspire payday lenders to offer highly competitive products and exceptional customer service. Stay tuned in the months to come!
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