Taking Apart Loans: Common Questions Answered; Myths Debunked
Recent travails of economists of the world have shown that there is no telling when an economy would start plummeting to a point where people start losing their jobs and, subsequently, their bank balances. Considering the state of the world we live in, we endeavor to help those individuals who are considering instant loans as a way to improve their lives.
Online cash advance services are used for a wide variety of purposes by individuals. On the one hand, there are people who use instant cash advance services for the purpose of paying their bills and conventional loan installments on time so as to avoid penalties and late fees, while on the other, people get cash advance on the internet to take a vacation or start a business.
Therefore, our objective here is to allow people a clearer and more lucid view of what instant loans are and what they provide. In the process, we will answer many questions that people interested in online cash advance services have as well as debunk numerous myths about online loans.
Why Are APRs So High For Instant Loans?
The most misleading information that is circulating in the world right now has to do with the interest rates for instant loans. Negative focus from various media publications has resulted in people thinking that instant loans are saddled with unbelievable interest rates that are designed to break the back of the proverbial camel.
However, in truth, the facts are represented in a wrongful manner. While it is true that the interest rates for online cash advance instruments are high, these instruments are not designed to be used for a whole year. This makes the whole concept of APR or annual percentage rate redundant.
In fact, instant loans are expressly designed to be used for anything between two weeks to a couple of months. Typically, interest rates put on instant loans are in the range of USD 15 to 25 for every USD 100 borrowed. Effectively, when you get cash advance of USD 100, you would pay anything between USD 115 to USD 125 after one month.
Online Cash Advance Services Are Designed To Take Advantage of People
Negative media coverage has also resulted in instant loans being cited as instruments that have been created to take advantage of people. The impression created is that instant cash advance services target the needy in the form of poor individuals, senior citizens, uneducated people, single mothers, the underprivileged, and the unemployed.
However, statistics clearly debunk these statements. For instance, the majority of people who get instant loans are people who earn between USD 25, 000 and USD 50, 000 which counters the poor argument. Furthermore, around 70 percent of people applying for instant loans are below 45 years of age which debunks the senior citizen argument. Similarly, 94 percent of people getting instant loans are high school graduates, 42 percent own homes, and the majority are married.
Also, it must be mentioned that you would never be able to get cash advance if you are not employed or if you do not have a steady income. In fact, this is one of the few prerequisites that instant loans providers put on applicants.
Do I Risk Getting Trapped In a Cycle of Debt If I Get Cash Advance?
The industry of instant loans is not deregulated. This means that the instant cash advance industry has rules imposed on it which every online cash advance service provider is required to conform to. Every state in the country has its own set of rules for governing the online loans industry.
For instance, in the majority of states, an individual is not allowed to borrow more than USD 500 in the form of instant loans, regardless of his income. The reason for such borrowing limits is so that the borrower is protected from not only bad instant loans providers but also himself.
Such ceilings on the borrowed amount mean that it is virtually impossible for an individual to get trapped in a cycle of debt as many rumors state. Moreover, this is also not possible because rollover of instant loans is something that is very rare because most states do not permit it.
Even though there are checks and balances placed on the online loans industry by various state governments, it is still important for you, yourself, to stay aware and in control of your financial situation.
For instance, before you actually get cash advance, you should pay special attention to your own finances. Assess your income, project how much money you will have to pay back for the instant loans you are taking, and calculate whether the balance would be enough for your monthly expenses.
Instant Loans Can Be Used For a Wide Variety of Purposes
There is no limit to the range of uses that instant loans can have. Their application process and resultant benefits make them virtually suitable for all kinds of situations. For example, the fact that instant loans can get sanctioned in a matter of a few hours means that they are perfect for emergency situations. Effectively, if you have a medical emergency or just have to pay your bills, online cash advance services can come to the rescue.
Another benefit of using instant cash advance services is that your reputation would not get tarnished in any way. There are two things you should consider here. The first is that since the whole process would take place online, nobody would even find out that you have taken a loan. Moreover, as the act of utilizing instant loans would never show up on your credit report, your credit score would also remain intact.
However, when you do approach online cash advance services to get cash advance, you have to ensure that you are informed. You need to ask pertinent questions, get quotations, and actually read what the quotations say from the beginning till the end. Reading the fine print would not only help you choose the right instant loans offers but also help you to understand your responsibilities according to the agreement.