Cash Advance Payday Loans: Myth Busting
Copyright © 2011 Andrew Scherer
New online payday loan sites are become more popular year by year, as more people than ever are turning to them for help with small cash advance to get them through the week when they’re between checks. Even so, in spite of this, a large percent of borrowers remain in the dark with regards to their basic operations. There is also number of what might best be described as “urban myths” surrounding them. So what’s the real story then?
To begin with, far too many folks simply assume that because they’re called “payday loans” that they must have a job to qualify for one. That in order to pass the application process it must be a paycheck coming to pay the loan back with. In reality, it can be pretty much any source of income. Just as long as you can verify it. In fact you can even find loan sites online that will issue you a payday loan if you’re unemployed and collecting unemployment insurance.
Then again there’s yet one more common myth making the rounds on regular basis out there. That’s that when you secure a payday loan, it will be for two weeks and two weeks only. Admittedly a relatively short period of time a person has to repay a loan. The truth here is that sites will go up to 30 days which is their legal limit. Even so, some sites are able to skirt the law by offering to renew the loan at the end of 30 days.
Then perhaps you may have heard that you absolutely must have some type of bank account in order to qualify for a payday loan. In fact a lot of folks out there have it stuck in their head that it must be a checking account. The truth here is that most sites do require that you have a checking account that’s at least 90 days old. However, some sites will lend to you if you only have a savings account. So then what about alternatives?
Simple answer here is yes. There are alternatives now because some sites will issue a loan even if you have neither a standard savings account, nor a checking account. So then how they do it? It’s really quite basic. That is that after you’ve cleared the application process they wire you the money. Then when it’s time to pay the loan back, you simply wire them the payment. However, be aware that sites that do this are in the minority.
Then also do keep in mind that these types of loans that don’t involve a savings or checking account are going to come with some of the worst turns you can find available. This means that not only will it have higher fees for the loan itself but also because of the unorthodox payment method, you can also expect to be facing a higher penalty fee if you’re late on making your loan payment.
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