Payday Loans Articles

Man staring at a question mark
Nov, 22, 2011
There is no doubt that some suffer from the payday loan trap, and wind up getting caught on what seems like a never-ending cycle of debt. Critics of payday loans jump to these borrowers’ defense and shout about usury, short-term limits, and exorbitant annual percentage rates (APR). But are the countless others who have found much needed help in payday loans being forgotten? If the answer is yes, and if the alternatives for other forms of low-credit lending prove to be incapable, then we must ask ourselves: are payday loans really that bad?  High Interest Rates That Don’t Yield Profit  
Women pondering a decision
Nov, 7, 2011
With the advent of online payday loan services, it can be very easy for borrowers to get caught up in a cycle of recurring, automatic payments being drawn from their bank accounts. Now that instant cash at high interest rates are but a few mouse-clicks away from anybody with internet access, the Federal Trade Commission (FTC) seeks to cushion the risks borrowers’ subject themselves to by offering advice:
Bomb with the word "Risk" on the front
Sep, 20, 2011
A study released in 2011 by the Consumer Federation of America took a look at 20 online payday lenders and assessed their best and worst practices. The study found that the electronic nature of these online loans can heighten the risk for increased debt and even fraud. Here is a list of the top five payday loan risks the study illuminated.
Radar detecting a dollar sign
Sep, 15, 2011
In recent history, members of the military and their families have often been targeted for payday loan scams, sending them deeper into debt and heightening their financial burdens. The Military Lending Act of 2007, however, placed stringent limits on the relationship between payday lenders and these military personnel.
Hand holding green credit card
Sep, 12, 2011
As with most types of loans, payday loans sometimes rely on a borrower’s credit score to determine if he or she is likely to meet the repayment terms. Increasingly, however, payday advance providers are extending short term loans without a credit check, and may also offer loans to borrowers with poor credit or no credit. In exchange for the convenience of being able to secure a loan without a credit check, however, borrowers are likely to face higher interest rates or fees, similar to the penalties for those with bad credit.
Two hands exchanging money
May, 24, 2011
Though payday loans may all be geared to help consumers secure quick cash before pay day, different cash advances have various benefits and disadvantages based both on their terms and on how they're secured by the borrower. Like other types of loans, payday loans are acquired either through a broker, who acts as a middleman between the lender and the borrower, or from a direct lender, who acts both as the point of contact for the transaction and the source of the funds.