A lot of payday loan critics claim that payday loan lenders pray on the “financially weak” or those with bad credit. That is simply not the case, especially for online payday loan lenders. A case can be made for traditional lending offices located in poorer neighborhoods, but the internet is an equalizer. The World Wide Web is open to everybody of every kind of financial background. We do not specifically advertise to those suffering from bad credit; on the contrary, online payday loan lenders can’t profit from those with terrible credit scores.
What most people don’t know is that in order for a payday loan lead to sell the customer must have a decent amount of credit. Payday loans are short term loans intended for those consumers experiencing temporary financial hardship. If you have never had a credit card, or simply maxed one out, you are still eligible. However, those who have very low credit scores or bad credit will likely get turned down. Payday loan lenders cannot financially risk lending to customers with terrible credit. Cash loan critics would say that cash advance lenders look for those with bad credit, who cannot possibly pay back loans on time, so that they can charge incredibly high interest rates.
Anyone who has ever borrowed money before, whether it is through a loan or through credit knows about interest rates. Those who do not pay back their loan on time, begin to acquire interest. The payday loan product is available to many Americans who do not have access to other types of credit. They need a small amount of quick cash to pay emergency expenses. Without payday loans these customers could face overdraft fees, late fees, and other consequences. Payday loans are a useful product when used properly. You should not take out more money than you can afford to pay back. You should consider the fee associated with your loan, so that you can pay back your loan in its entirety. Payday loans are due within two weeks, or by your next paycheck.
In conclusion, you can’t take out a payday loan with horrible credit. Therefore, payday loan lenders cannot be taking advantage of consumers who cannot payback their loans on time. Secondly, without payday loans many Americans would face far worse consequences then the interest rates charged on cash advances.