Online Pay Day Loan

Online Pay Day Loan



Online Pay Day Loan
To any person with a​ credit score of​ 700 or​ above,​ pay day loans may seem like little more than highway robbery .​
And,​ when all things are considered,​ online pay day loan companies do charge hefty fees for the​ services they provide .​
But the​ question that begs to​ be answered is​ this: Do pay day loan companies offer a​ legitimate service that people actually need or​ are they merely preying upon people with nowhere left to​ turn for credit options?
Generally speaking,​ a​ pay day loan place charges roughly $15-20 on​ every $100 you​ borrow and asks that the​ money be repaid in​ two weeks or​ less .​
If you​ converted that into an​ APR,​ it​ would probably exceed 200% at​ most of​ these pay day loan companies .​
Without a​ doubt,​ this does make any credit card look like a​ great option in​ comparison .​
But still…is this a​ viable service?
In fact,​ online pay day loan companies are providing a​ much needed service for a​ segment of​ the​ population that has limited options due to​ poor or​ non-existent credit .​
So for people who have had an​ unexpected auto repair,​ such pay day loan companies do not charge unreasonable fees when you​ take a​ minute to​ look at​ the​ alternatives.
For a​ person who has had their car suddenly breakdown on​ them,​ the​ choice is​ simple: either get the​ car fixed by securing an​ online pay day loan or​ lose their job because they don’t have a​ reliable way into work each day .​
Yes,​ the​ person will have to​ pay roughly $50 to​ borrow $250 for two weeks,​ but does that c-note compare to​ the​ lost wages and financial hardship that would be suffered should they lose their job? When you​ think about it​ in​ these terms and remember that these pay day loan companies are the​ last and only option for some,​ it​ is​ clear that they are indeed providing a​ legitimate service.
The same scenario basically applies if​ you​ get a​ utility shut off .​
Even if​ a​ person were willing to​ do without the​ utility until their next pay day,​ the​ penalties charged for being disconnected along with the​ fees assessed for turning the​ service back on​ will almost certainly exceed $50 .​
Again,​ while the​ fees do appear unreasonable to​ people with credit cards and other financing options,​ they are actually quite reasonable when you​ consider the​ consequences of​ not getting the​ loan.
So for the​ person using a​ pay day loan service,​ there are two basic benefits: convenience and access to​ much needed financial assistance in​ times of​ crisis that would be otherwise unavailable to​ them .​
Now of​ course there will always be people who abuse this service and take out loans for silly things that could wait until their next paycheck .​
But for the​ vast majority of​ people using a​ online pay day loan service,​ the​ access to​ emergency funds—even at​ elevated interest rates—is absolutely vital .​
the​ consequences of​ not having this access can cost people their jobs and generally create hardships that could otherwise be avoided.




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