THE TRUTH ABOUT LENDING IS HERE Loan.com

Nearly everywhere you look, an advertisement for a one hour payday loan is in front of you. They are becoming commonplace in society, but are they actually a good idea? Before you sign on the dotted line, think about these pros and cons associated with payday loans.

The Process

You enter the pay day loan store and talk to the employee about how much money you need to borrow. They will ask you to fill out some paperwork and get you approved on the spot. From there, you will write a post-dated check for the amount of money you need to borrow plus the interest. If the term of the loan is two weeks, you will write the date of two weeks from now on your check. They will hold the check under the assumption that they can cash it on the specified date. 

Quick Money

The best thing about a payday loan is that you get the money you need in record time. You can walk into any of these establishments broke and walk away with hundreds of dollars in your pocket. If you are considering using a pay day loan, you are obviously in dire need of the cash. This service is filling your biggest need exactly when you need it. Unlike many other businesses, they are filling a legitimate need in many people's darkest hour. 

High Interest Rates

The big downside to obtaining personal loans from these businesses is the high interest rates that you will pay. In most cases, you borrow money for a week or two at the most. However, the personal loan rates that you pay for the money is outrageous compared to normal loan standards. Pay day loan stores know that you are desperate for the money. Therefore, they know that they can charge whatever they want and people will pay it. Many times, you will agree to the terms without reading the fine print. Make sure that you know exactly what you are signing before you give them the go ahead. When you ask for an extension, the company will usually accommodate the request at a much higher rate. By the time the process is done, you may have paid 300% of what you originally borrowed. 

Unscrupulous Practices

Pay day loan centers are not always known for their integrity. While many of them are good, upstanding businesses, some of them are not. They will engage in practices that border on questionable and usually end up in their favor. For example, some will try to cash the check immediately upon receipt of it. Although it was post-dated, your bank has now been asked to send the check through. You were already strapped for cash and now you have to pay an NSF fee on top of it. Depending on your bank's policies, there could be other ramifications as well. There are many other clauses and fees that they try to add in as well. Before you do business with anyone in this industry, make sure that you know who you are dealing with.