Over the years, payday loans have earned quite the reputation as being the most-used tool for loan sharks and cheats. It’s unfortunate, though, as payday loans can be incredibly useful. Many people have benefited from the use of payday loans in a pinch, but with the way the internet is today, many payday loan myths have surfaces.
Myth: Payday Loans are Impossible to Pay Back
One of the most common payday loan myths revolves around people being tricked into taking out a payday loan and never being able to pay them back.
The only way to receive a payday loan is to apply for one. In order to be accepted, your financial information must meet the requirements and a repayment plan is built – with a variety of options – to ensure you have an opportunity to repay the full amount plus interest.
Myth: Lenders Work on Commission
It’s yet another common myth that lenders work on commission and therefore want you to take out loan after loan. However, today’s lenders typically do not work on commission. It’s not the usual, at the very least.
Myth: Fees Cost More Than the Loan
Many loan companies, especially payday loan companies, are required to disclose any interest, fees, and charges tacked onto a payday loan. These extra fees are all outlined in your contract and explained by the lender beforehand. Their goal is total transparency. As such, you’re never going to be bogged down by fees or additional charges. You’ll know exactly what you’re paying.
Myth: Payday Loans Target Low-Income Households
Perhaps the biggest myth online is that payday myths only target low-income residents and neighborhoods. This is just not true. A payday loan is available to anyone, regardless of their income stature or location. A lender will not specifically target one home over another.