Given the recent lawsuits and the interest rates paid by the end user within the pay day loan industry, do you think this cash advance system is good or bad for the individual needing money fast?
2007-03-14 07:31:14 · 6 answers · asked by ladyinblue 1 in Business & Finance ➔ Other - Business & Finance
I work for Check Into Cash. It is a payday advance, typically a 14-day loan. They cannot give u a loan for less than 7 days and will set you up for your next pay day. In california at my company we charge $15 for the first $100 advanced. So the max is $300. You write a check for $300 and we give you $255. (The apr is 460.08% but that ANNUAL percentage rate is based on a 14 day loan.) Any questions? Call your local "Check into Cash." personally I think it is GREAT. I got in a car accident and I had no money to pay the tow truck so I went and got 255 and paid them back on my next pay day.
2007-03-17 17:44:55 · answer #1 · answered by ice_purple969 4 · 0⤊ 0⤋
It's a money trap. The average $100 payday loan costs over $310 to repay.
You're short of money this week, so you write a check for $120 to get $100 cash.
Guess what? Next week you're still broke. No problem - write a check for $150 to get the $120. Next week, it's $185 for $150, then $225 for $185 and on and on and on.
You just dig yourself deeper and deeper in debt.
Car title loans have a little different scam:
They give you a loan for $2000 on your $3500 car, and then hope and pray you can't repay the loan so they can take away your car.
A certain homebuidling company does something very similar. I won't mention the name, but it sounds a lot like "Slim Halter Combs". They will build you a house "90% complete for 10% down." All you have to do is put up the house and the land the house is on for collateral. Then they build a house that they know damn well you can't afford. So when you default, they take the house AND your down payment AND your labor to finish it AND your land.
2007-03-14 07:36:53 · answer #2 · answered by pater47 5 · 0⤊ 0⤋
It is bad news, you are much better off just using a credit card. For example; you borrow $100 and must pay back $110 on your next paycheck in two weeks. Now, you are only paying $10 but when you calculate the APR the scam becomes obvious. ($10 interst x 26 periods per year)=$260 or a 260% APR. Pretty bad deal when you consider a high credit card rate is 29%.
2007-03-14 07:45:33 · answer #3 · answered by Anonymous · 1⤊ 0⤋
I think its best to just go to an actual payday loan company and request some information - giving a junk email account as your contact info. You can see how they work and get better information than on here! The link below is a company that is fairly well regarded in the industry - but again, this is a shady industry...
2007-03-18 06:08:43 · answer #4 · answered by brettR 2 · 0⤊ 0⤋
You possibly can instanly obtain a quick payday loan as much as $1000 by using this site: http://loans.servermatrix.org I acquired the payday loan despite the fact that I have extremely bad credit history.
2014-07-17 03:27:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It is bad, because if something happens to where you may not be able to pay it back with you check on the date, you will get stuck with fees and drama. If you do watch out for the fees, you shouldn't have to pay 45 per hundred to borrow money.
2007-03-14 07:38:37 · answer #6 · answered by tonya l 2 · 1⤊ 0⤋