Payday Loans Blog

There are many occasions when you need money in a hurry, but don't have any coming to you right at the moment.  That's when a cash advance is a perfect solution.  

A cash advance is a quick, easy, and convenient way to get an advance on your next paycheck.  Emergencies come up, cars break down, and other situations arise that require montetary services to properly solve.  It can be hard to get money quickly from a bank or credit union.  However, Check City can provide you with these services in a surprisingly short amount of time at an affordable rate.

There are just a couple of things you need in order to get a cash advance.  To qualify you have to have a steady source of income, a checking account in your name, and a state or federal identification card.  Aftery qualifying, you write a personal check for the amount of money you need and include our standard fee, then walk away with cash in you pocket!  Check City will hold the check until your next payday or another date that you specifically request (if approved).  

While cash advances are very helpful and a get option when you need fast money, they should also be used wisely.  A cash advance should be used for short-term financial needs, and not as a long-term solution to financial struggles.  

Check City does everything possible to assist every applicant, but not all loan applications will be approved automatically.  Come in to your local Check City store and see how easy it is to get the money you need.  A cash advance could be the answer to your financial needs.  

Only four weeks after it was introduced, H. B. 1214, the Payday Loan Reform Act, will receive a hearing broadcast live on the internet. The bill would limit rates on payday loans and set up repayment plans for consumers unable to repay loans on time.

Of course the Center for Responsible Lending released a statement declaring the bill to be insufficient for protecting consumers. They want a 36% APR cap on all lending. (ie: put payday leners out of business.)

The bill would limit fees on payday loans to $15 for every $100 borrowed for two weeks. Compare that to a $35 overdraft fee or a $25 bounced check fee, and payday loans look like great alternatives. Try telling CRL that...

According to the CRL, this bill still allows those evil, nasty payday lenders to get consumers into those cycles of debt and rip them off. Keep in mind, they claim the average payday loan is for $300 and costs $800 to pay back.

For one, a vast majority of borrowers pay their loans back on time. For repeat borrowers, those getting a loan that is not their first, the default rates are right around 10%. That means those who get more than one payday loan pay it back on time over 90% of the time.

Doesn't sound like a debt trap to me. That's not even mentioning that it is physically impossible for a borrower pay $500 in fees on a $300 loan. Law prohibits lenders from infinitely extending loans. Usually after 12 weeks no more interest can be gained on a loan.

While the bill strikes a compromise between groups like the CRL and payday lenders, we at Check City still feel like the payday loan industry is not in need of regulation. The predatory lenders will get run out of business by the good lenders. It is self regulating.

In an industry that is so competitive, the weak and the illegal will cease to exist. Only those who charge reasonable rates, offer reasonable payback options and treat their customers well will stay in business in the long run. The government simply does not need to get involved with payday loans.