Online Cash Loans Are More Transparent Than Bank Charges | PaydayLoanSolutions.Net

Quick online cash loans, otherwise known as payday loans, could actually work out cheaper than a traditional bank loan because you have to take into account the severe penalties banks charge if your account becomes overdrawn. Payday cash loan companies argue that they are far more transparent than other financial institutions when it comes to lending money. With online cash loans, you are told the terms and conditions up front and in clear, easily understood language. Cash loan companies tell borrowers how much they are to repay as well as issuing a due date.

Straight Forward Cash Loan

Compare this to banks who often have an array of small print that confuses the borrower. Banks try to draw attention away from this conduct by pointing out the high APR of online cash loans. For example, the average APR of American payday loan companies has been estimated at 450%. However, APR is irrelevant in this case as loans are usually repaid within 30 days. Using this typical 450% APR as an example, you can see that $250 loaned for 9 days will see you repay approximately $274 at the end of the loan term. You can view all this information on their website. Compare this to banks who have complex tariffs and pricing structures which seem deliberately designed to confuse the public.

Cash Loans Are Cheaper

The stiff penalties that are administered by banks when an account is overdrawn are far more expensive than repayments made for online cash loans. In the above example, $24 interest was paid over the course of the loan. The average overdraft fees charged by American banks is $34.65. Therefore, payday cash loans are actually a legitimate way to avoid facing extra penalties for being overdrawn on your bank account!

Online Cash Loan Fear

This explains why financial institutions are clamoring for regulators to be brought into play to prevent online cash loans. They hide behind the tired old excuse that cash loan companies are ripping people off with excessive APR etc. Banks and building societies claim to have the best interests of the people at heart but in actual fact, they are protecting their own interests.

Online cash loans are a genuine threat to the monopoly they hold. No longer will they be able to rip people off with outrageous clauses, fees and penalties. Besides, they can’t complain about unfair financial practices when they charge an APR of 26.9%+ for credit cards, more than 10% APR on loans to be repaid while offering those who place money in a savings account an interest rate that is lower than the current rate of inflation.

Ignore the overtures and protestations of banks and use online cash loans if you have a short-term financial problem. Even with the high rates of APR, borrowing money from a cash loan company is still a better bet than allowing banks to issue excessively high penalties for allowing your account to become overdrawn.