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Banks Vs Instant Payday Loans - The Real Story |
By Jeremy Jones
 It should come as no surprise that big banks haven't ever been on good terms with the instant payday loan business. The main thing that your bank may tell you in order to keep you from an instant payday loan is that your loan will come with the highest interest around. When you break this down, it is simply not true. A banker might relate all kinds of nightmare tales about instant payday loans, assured that you won't perform the calculations yourself. This article can accomplish this for you.
Think about only being five dollars overdrawn in your checking account. Just for this, your bank will have assessed charges of an amazing $35 against you. When comparing your bank's fee with your five dollar overdraw you would receive approximately a 9,000% APR! If you had five checks totaling $100, and all of your checks bounce, you could be charged $175 in NSF fees, or more! Opting for a $100 payday loan for only $15 to $30 can help you escape unnecessary bank charges. In terms of savings, that is a huge gap. Saving
a lot of money is easy, if you just obtain your payday loan before your original check bounces.
If your account is overdrawn, some banks may charge you a daily fee. Even with a fee as low as $5, if you do not get paid for another six days, you would have to pay $30 in fees. Your financial institution may close your accounts if you have excessive overdrafts. If a bank has forced you to close your account, this may keep you from being allowed to open a bank account at other institutions. Additionally, if your bounced checks end up in the growing Check Scan data base, you will be unable to write checks at places like Wal-Mart, Home Depot and Target.
If you consider the details, it only stands to reason that a huge conglomerate would be opposed to instant payday loans.
A Payday Loan can be used in extreme circumstances to meet short-term financing needs. Borrowers should be careful to understand the risks of such a loan, including high interest and large payments. For more information, please go here .
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