Payday loans are an often hotly debated topic, however, there are a lot of common misconceptions that are often not addressed.
This is something that can have a profound effect on the number of people that are applying for loans or even lead them to getting into debt due to a lack of true information.
In this article, we are going to look at 5 myths surrounding payday loans and try to debunk them for you.
1 – Finding A Decent Lender Is Time Consuming
When thinking of applying for a payday loan online, it is a common misconception for many that it will be very time-consuming but this definitely is not the case.
There are plenty of websites out there that are specially designed to ensure that you can find the funds that you need as quickly as possible by comparing all the payday loans that are available to you.
This not only makes it more efficient by removing the number of hours spent searching the internet manually, but it also allows you to find the right deal for you in a much more reasonable time frame.
2 – You Can’t Get A Loan If You Have Bad Credit
Although some lenders may favour those with an average credit score or above, there are also loans that are available to you that are specially catered to those with bad credit.
While there is still often a credit check, you are more closely judged on your current financial state as well as the results of an affordability check that every lender is required to run.
This has made the acceptance rate much higher to give you the money that you need to get yourself out of your financial emergency as quickly as possible. You can check your credit rating using a free service like Noddle.
3 – They All Have High-Interest Rates
Although the interest rate is different from lender to lender, it is still possible to find a loan that has the right interest rate to suit you.
If you are struggling to find the right loan for you it may be beneficial to use a broker. Brokers tend to take your information and match it up to the loans on offer across the industry that will actually suit your needs.
This cuts down your own search time considerably and ultimately helps you get hold of the money much more quickly and usually without any excess stress.
4 – They’re Difficult To Pay Back
If you’ve opted for a loan that’s actually suited to you and your financial situation, paying it back should be relatively simple.
The only time that a loan would be difficult to pay back is if the interest rate is too high for you to be able to afford and considering that all lenders are required to run affordability checks, this should never be the case.
However, it is important to do your research before applying regardless. After all, you know your financial situation better than anyone else.
Should you not be able to pay back your payday loan for whatever reason, it is important to contact your lender directly as you can come to an agreement about a suitable payment plan.
5 – Payday Loans Are Just For ‘Poor People’
While you’d often be forgiven for believing this misconception, payday loans most definitely aren’t just for those without a penny to spare.
In fact, as an emergency form of funding, they can help pretty much anyone who needs cash fast. Even if you have a stable job, a fairly large paycheck and a comfortable home, an unexpected payment could throw that completely out of touch and that’s where a payday loan might come in.
Hopefully, we’ve helped clear up some common misconceptions you may have previously believed and helped settle your mind surrounding payday loans.