Quick Loan Myths vs. Fact

The realities of cash advances are vastly different than the myths spread by industry critics. The following is a straightforward examination of cash advances to help separate fact from fiction.

MYTH #1

Unreasonably High Interest Rates

Unlike most loans, which accrue interest over time, only a flat fee is charged on cash advances. This fee is much less than a bounced check or overdraft fee.

MYTH #2

Extremely Low Costs for Lenders

Forcing cash advance lenders to lower their rates would effectively put them out of business, depriving customers of a valuable source of short term cash.

MYTH #3

Banks Are Better

Most banks don’t offer loans in similar amounts to cash advances, and those that do often involve complex rules and charges.

MYTH #4

Never Ending Debt Trap

Cash advance lenders want customers to have the full information about a loan before agreeing to it. Nobody wins when a loan can’t be repaid, not the customer or the company.

MYTH #5

Lenders Prey On The Unsophisticated

Cash advance lenders provide important loans to Americans of all backgrounds and jobs. The average cash advance customer is very close to the average American in education, age, and income level.

MYTH #6

Lending Industry Is Unregulated

The cash advance industry is highly regulated on both the state and federal level in order to provide both the customer and company with necessary protection.