5 Myths About Payday Loans Busted

There are a lot of myths circulating about payday loans. There are a lot of critics of this way of borrowing money, and they will try to tell you that taking out a payday loan is a mistake. You need to hear the truth, though, so here are five of those lies and the real truth.

Myth #1: Payday Loans Are Only for the Desperate

The majority of users of payday loans are just ordinary people with full time jobs. They take out a loan just to pay a couple of bills during those times when cash runs short early and payday is still a few days away. There is nothing desperate about it; just a smart way to get quick cash every once in a while.

Myth #2: Payday Loans Will Hurt My Credit Score

The opposite is actually true. What hurts your credit score is being irresponsible about borrowing. Taking out occasional payday loans, using them responsibly, and repaying them on time means that you can turn your credit score around. You built positive credit and improve your score when you use credit.

Myth #3: Credit Card Debt Is Better than Payday Loans

A lot of people turn to credit cards when they need extra cash, simply because it seems familiar. The problem is that credit card companies do everything possible to try to keep you in debt. Payday loans, on the other hand, are designed to be repaid quickly, so you don’t hang on to a lot of debt.

Myth #4: I Won’t Get Approved for Payday Loans Thanks to My Credit Score

The truth about this myth is in the name: payday loans. Most payday lenders never check credit scores to approve borrowers. They look at your income, your job history, and decide if you earn enough to be able to afford a small loan.

Myth #5: I Can’t Afford Payday Loans

Critics love to talk about how high the rates are on payday loans. The reason for the high interest rates is that these loans are much shorter in term length and smaller in amount than other types of loans. The actual amount you pay in interest on payday loans is much less than you think.

Now that you know the truth about payday loans, get started today. Apply online or with our convenient mobile app and you could have extra cash tomorrow.