Some Facts About Payday Loans In Bellvue WA
Local pundits, newscasters, and politicians have expressed their opinion about payday loans in Bellvue WA. These people live in a completely different reality than the people that need the services of companies that provide payday loans in Bellvue WA.
The following are some facts about payday loans in Bellvue WA. These facts show both the up side and the down side.
Not everyone in Bellvue is financially secure or well off. The people who voice the worst opinion of payday loans in Bellvue WA have never been denied a loan from a bank. They never lived from one meager pay check to another.
The market for this service is people who cannot get money from banks. They need money immediately for a car repair or a hospital emergency. These people may have no family. They do not want the emotional debt that borrowing from a relative entails.
No credit history
A bank will laugh at you and show you the door if you have no credit history or have defaulted on a loan or a credit card. All those ads about caring bankers mean nothing to people that do not have property to put up as collateral for a loan.
The alternative is simple. If you have a job and can verify that you are gainfully employed then you can get money for an emergency. The amount of money that a person can get as a loan depends on their income and not their credit history. The person’s credit history is never checked or considered.
Short term loan
The concept is a short term loan. The idea has been around since ancient times.
The most common scenario is something like this. A person has an emergency like a child being hospitalized. They end up not having the money to pay their car payment for this month due to the hospital bill. Their choice is to lose their car and their job or get the only loan that they can.
High interest rates
This type of loan does charge higher interest rates than bank loans. You would pay just a little less for the same amount of money if you got the loan from a bank for the same amount of time. Banks do not make loans for a week.
The companies do not take homes and cars
If a person cannot make a loan payment then they pay more interest. This is exactly what banks do. Banks will take a car or a home. The payday loan companies that offer loans in Bellvue WA cannot take a person’s job. The loan does get extended and a person does pay more in interest.
No payment will have an effect on a person’s credit score just like any other loan.
Banks take a few days to process a loan application. Filling out the application can take a few hours to collect all of the required information.
A payday loan can be obtained through the internet. A minimal amount of information is needed. A person can choose from several lenders who offer different terms for a loan. The funds can be sent to any bank or credit card in less than 24 hours.
This is a service. It is a financial service for people who need money and have few resources. The potential for abuse exists. Regulations prevent companies from misusing clients. Abuse is not in the company’s best interest because their clientele will make the abuse know on social media.