These web sites providing valuable information on banking services for our payday loan customers. Not every site has been reviewed however, we ask that our clients use their own discretion if they decide to use the services of any of the company below. We also have an informative article on banking and the payday loan industry below. Feel free to link the article at your own convenience.
If you've been reading any financial publications or visiting financial websites you may be aware that payday loans are not considered to be the best choice for people who are struggling financially. However, these publications do not seem to fully understand the uses of the payday loan and the reasons they were originally designed. A payday loan used as a one off solution to financial problems and repaid when due on your next payday is a valuable commodity to the millions of people who have already used them. The rates may appear high at first glance but when you compare them to the rates you will be charged for missing loan repayments or bouncing a check it soon becomes apparent that they really aren't that unreasonable.
As with any loan, the higher the amount you borrow with a payday loan the more you will be expected to repay. Most payday loan companies charge a rate of between $10 and $20 for every $100 borrowed. You will be expected to repay the total amount you borrowed and the charge levied against the sum on the date of your next payday. So, if you borrow $100 then you will need to pay $110 to $120 in two to four weeks time. If you are borrowing the money for more than two weeks check the rates because many companies levy the charge on a biweekly basis so you may be charged twice if you borrow money for more than two weeks.
Now, compare that to the potential costs of missing a $100 payment to a creditor. The creditor themselves will usually charge you a missed payment fee and that alone can cost $10 or even more. They will also start to charge you an inflated rate of interest on the amount until the date you pay it back. However, worse still are bank or credit card charges. Failure to make a credit card payment costs an average of over $30 now making it very expensive and the money will have interest charged against it until you repay the money owed.
If you issue a check that subsequently bounces your bank will usually charge you around $20 for the bounced check and this is on top of the late payment charge and interest you get charged by your creditor. Charges for missing a $100 payment can soon rise to $50 even if you manage to pay it just one or two days late. If you have to wait a fortnight before you are able to pay you can expect these charges to rise and keep rising until you do make the expected payment of the original amount and the extra charges.
Comparing late charges to the charges for a payday advance soon makes it obvious that a payday advance is not as expensive as it first seems, presuming you repay it on your next payday or very soon thereafter. Rolling your loan over time and time again, on the other hand, will cost you money but if you only use a payday advance knowing that you will be able to repay it then this won't be an issue.
