The Pitch – Why would anyone get a cash advance loan?

August 28, 2009 – 9:29 am – No Comment

Why are people taking out cash advance loans?

Question:

Cash advance loans are notoriously bad loans. They typically have outlandish APRs and often leave the borrower in some kind of financial turmoil. So, why would anyone take out a cash advance loan to begin with?

Answer:

People take out cash advance loans because they need emergency money and their credit isn’t good enough to get traditional loans. This is one of the only reasons that I can imagine why people would want to take out payday, title, or cash advance loans.

Many people can’t afford the outrageous APRs, so I am not too sure why these companies pop up just about anywhere there is a hole in the wall. I suppose it’s because they make so much money off the people who do pay, that the people who don’t or can’t pay are overshadowed by the other customers’ payments.

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