What are the risk factors associated with taking out a payday loan?
Overall, we find the rewards outweigh the risks, provided you know how these loans work, and can repay them on time. We’ll discuss those risk factors and show you the many advantages to payday lending with Lending Bear.
A payday loan allows borrowers to get small-to-medium sums of cash for short-term purposes, usually after they could not get a bank loan. You do this by bringing in a voided paycheck (proving you’ll be able to repay with your next paycheck), then we lend you the money. You can obtain approval within minutes without credit checks or long waiting periods.
While term durations vary, depending on your state, you can expect to repay it within two to four weeks. We design them to match the timeframe in which you would receive your next paycheck.
Some critics of payday lending will cite certain risks or disadvantages to using them. These include: high interest rates, a potential debt cycle for the borrower, and insufficient for addressing long-term financial problems.
First, we always remind our clients that these are NOT long-term debt instruments. Second, while these are high-interest rate loans, the goal is to repay them once you receive a paycheck to avoid falling into a debt cycle with excessive interest. Fortunately, if you understand this before signing up for a loan, you’ll be ready to handle and avoid those risks.
Risks aside, there are several advantages to using cash advances, such as:
For these reasons and more, we think the advantages outweigh the risks.
We can also help you with other debt instruments that support the same purpose: fast cash to help you overcome sudden expenses.
2. Pawn Loans
3. Title Loans
Don’t forget that all the lending we do is location specific. It’s highly important that you only use a state licensed direct lender for financial instruments like these.
Lending Bear does business in several southern states, including Florida, Alabama, Georgia, Tennessee, and Louisiana. We have over 30 years of experience supporting the financial needs of our clients with fast credit sources.
Our company receives regular auditing, remains compliant with all state regulations, and protects your confidential information with Site Lock Secure software. We also hold an A+ accreditation with the Better Business Bureau (BBB) and have good-standing membership with groups like INFiN (A Financial Services Alliance). You can also verify our commitment to 100% customer satisfaction by reading through thousands of positive testimonials from clients who were once in the same predicament.
Contact us today to learn how obtaining a payday loan can help you overcome short-term financial hardships.