Pushing for Payday - Payday Loan

Payday Loan - Really?

Everywhere you look, people throw the terms payday loans, payday advance, cash loans, and fast loans around pretty loosely, like they all mean the exact same thing. Heres some news for you that most lenders won't want you to know: a payday loan technically isn't a loan, but a service essentially providing payday before payday. Should you worry about this discretion? Oh yes, you're here Pushing for Payday, and you need as much information as you can get to make that fast payday loan truly successful. Worry your cash-hungry fanny to the floor.

Take the loan out of payday loan

Its all a matter of getting around rules, bending but not breaking the legal system so lenders can offer you a payday advance at $20 per $100 borrowed. This may not sound like much, but when looked at from an annual perspective the facts come out:

20% for a week long advance correlates to 1040% APR, if you use that advance for a whole two weeks, the APR drops to half, or 520%.
The worst credit cards you will ever find have APRs of somewhere around 35%, and usury laws prohibit loans from climbing over that same 35% mark.

So where are these usury - overtly-high rates for lending - laws with regards to payday loans? Ah ha! By avoiding the technicalities of "loans" a payday loan can charge as much as it wants, just so long as the consumer is willing - or forced - to pay that high price. Thats why everywhere you look you will see the exact same fees for your payday loan - if a single lender offers equally accessible payday advances at lower costs and rates, the whole towering, high-cost payday advance loan system will come crashing down into the depths of cheap.

Why haven't banks stepped in?

The prices you are seeing for payday cash loan services will remain high because the financial industry giants deem it so. Its a sad fact of life, but banks are concerned less with you personal financial protection than with cold, hard, matter-of-fact profit, and payday advances are just crankin' out profits faster than anyone ever imagined:

payday "lenders" get around state usury laws by partnering up with national banks, national being the important word.
most states have some sort of instant payday loan prohibitions in place - limiting rates, fees, overall loan amounts, and requiring complete and honest disclosure - yet in almost every state these laws do not pertain to national banks, which are only subject to the usury laws of the state in which the bank is headquartered.

That means a California-specific lender can team up with a national bank headquartered in South Dakota, and the California payday limits will not apply to that lender. And you may be thinking " why in the heck do I have to know this?" And we answer...because! You are here looking for a payday loan online, and national banking rules don't necessarily apply! Be careful, move cautiously throughout your payday advances - even more so when a no fax payday loan is involved - and keep you ultimate financial goals in front of you at all times!

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