1. The first most popular myth that you have already heard of is the one that states that payday are existing only to take advantage of poor people or the less fortunate ones. This is actually a myth mainly because they are not there to take advantage of the less fortunate, they are there for everyone who needs fast money for their emergency financial needs. Remember that, payday loans are actually for emergency purposes that is why it is called a payday loan in the first place because you need to pay it once you have already received your pay or pay cheque.
2. The interest rates of payday loans are too high and expensive; you would not be able to pay it. Again, remember that payday loans are only for short time solutions that is why you needed to pay it on time or after the days that they have given you for you to pay them back. Usually lenders will give you two weeks for you to pay the original amount of money that you borrowed from them plus the taxes that occurred for the days that passed after you borrowed the money, but usually it will only go high than the usual if it’s already more than two weeks. Therefore, payday loans have higher interest compared to other type of loans in the lending market is because it is not for annual or even monthly loans, such loan is only for quick resolution for emergency monetary needs, and that is what you need to understand.
3. Next is that you think that lenders do not consider your credit history. The fact is that they actually do it’s just that if you have a bad credit standing then they will find another reason why you need to allow them to borrow money from them, that is why as well that most of the most requirements they need you to have is that you need to have a permanent job and a specific salary range so that your application for payday loans will be granted. Therefore this is a myth because most lenders will still definitely take a look of your credit but it’s just that they have their own standards or set of regulations of who can apply for payday loans.
4. Another one is that you do not want to apply for payday loans because aside from the fact that the rates and interests are so expensive, that you may not be able to pay it is because payday loans are actually not regulated that is why they can just add any amount or percentage of rates or interests as high as they want to. This is actually true, though a few years ago until FCA released a new regulation about the standardization of interests in every £1oo that is borrowed from the lender, which states that if you will not be able to pay your lender on time then it should not go over £15 for the default fee or the late fee in other term that you will need to pay.
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