The Pitch – Why would anyone get a cash advance loan?
Jennifer McClelland | RSS | 4 Comments
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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John from Money Magazine | Sat, Aug 29 2009
In my view some people take out cash advance loans because they can. They are not the least bit concerned at any costs associated with the cash advance. My sister-law is a good example of this, she believes because its there it is hers to use. She also limits out all her credit cards. Then she wonders way she is always in debt.
John from Reverse Number | Mon, Aug 31 2009
These places are for those people who really cannot afford the horrendous interest rates, nor can they afford to really borrow money they do not have. But there is a market there, and a very lucrative one too. Without these places it would be the old loan sharks knee capping, beating up those who can’t make the payments.
Ted from Car Dealerships In Joliet IL | Sun, Sep 20 2009
Just because you can, doesn’t mean the should. Or something like that. How tough are they on people who don’t pay?
John from Advance Pay | Sat, Dec 05 2009
Payday loans are ideal for short term borrowers, to get out of a financial jam quickly.