In recent years, exaggerated news stories have given the instant cash loan industry a bad name. Rumors circulate that instill fear and suspicion against the payday loan or cash loan industry. While CashLoanToday.com is not a lender, it is important to us that borrowers understand the truth about payday loans. Let’s look at the most common misconceptions about the cash loan industry and see how they stack up against the facts.
1. You need a good credit rating.
Because of the fast approval time for an instant cash loan, also known as a payday loan, there is no credit check. Banks and other large creditors use credit checks to determine whether a person borrowing a sum of money over a long period of time is likely to repay the debt. An instant cash loan is a small loan, generally secured by a paycheck and repaid in a very short period of time. The credit rating of the individual does not matter when it comes to obtaining an instant cash loan today; your paycheck is your security.
2. Instant cash loans are scams.
If payday loans were a scam, it would be impossible to operate in the bright light of day. State laws and the federal Truth in Lending Act require that lenders reveal all loan fees and interest rates before the applicant signs anything. Payday lenders are licensed just like any other business, to ensure that borrowers are protected.
3. Instant cash loan companies will trick you into higher fees and interest rates.
The Truth in Lending Act requires any lending institution to provide all of the details concerning a loan to the borrower. This is true if the borrower is opening a credit card, taking out a secured automobile loan or a mortgage, and it is true if the borrower is taking out a cash loan today. Since all fees and the interest rate are disclosed during the lending process, it is impossible for a lender to trick anyone into paying more than they agreed to pay.
CashLoanToday.com does not lend money; however, we take steps to ensure that all the lenders in our network of cash loan providers adhere to the law and operate in a manner that our users can trust.
4. An cash loan today is designed to keep you in debt forever.
Taking out an cash loan is sometimes necessary to keep families afloat in a trying economy. These loans are designed to get you the money you need when you need it for emergencies such as medical bills or car repairs. If the car doesn’t run, will the family breadwinner be able to get to work? Will he or she lose her job because she can’t get to work? How much debt will that create for the family? An instant cash loan is not designed to be used repeatedly or habitually; however, when a family needs immediate help to forego disaster, it is sometimes the best option.
5. Instant cash loans target low-income people and households.
Some critics of the instant cash loan industry have stated that most brick-and-mortar loan stores are located in low-income neighborhoods because they prey on low-income families. This is a harsh criticism and CashLoanToday.com obviously cannot speak to every business in the industry. However, because we are located on the Internet, we do not have a physical location and therefore we offer our services to everyone equally. If you meet the qualifying requirements listed on CashLoanToday.com, we can help you find a lender to meet your immediate financial needs in a safe, secure environment.