Can I Get an Interest-Free Payday Loan?
If you were to ask people what their number one complaint was with payday loans, we would bet a lot of them would say the interest rate. If you have paid attention to the news, or this past election season, you know many states had payday loan bills on the ballot. Many of these bills were aimed at trying to regulate the amount the payday loan lender can charge on interest. Many people are trying to find their way around this trouble. One option that they wonder about is whether or not you will be able to get interest-free payday loan. Let’s talk a little bit about this opportunity and whether it exists.
A.K.A. Free Money
If a payday loan has no interest, you can refer to it as free money. This is essentially what they are giving you. If you need $300, they will give you $300, and you will pay them back $300. There is no incentive for them to lend you money, and there is no incentive for you to pay back on time. In fact, a company that does this will probably not be able to stay in business very long because they are not making a profit. If you do come across a company that does this you will need to make sure that everything is legitimate, because it probably is not. Sure, you want to do things that will save you money, but you should not want to get caught up in illegal business.
Charges Replace Interest
“Come in now and get an interest-free payday loan for only $10.” There might be payday loan companies out there that say this. Alright, you are not going to get charged interest, instead the interest is replaced by an initial fee. You really are not escaping anything. They have just taken a fee that occurs later and shifted it to the beginning. The problem you must watch out for is that you are not paying more in charges than you would in interest. You do not want to get so caught up in trying to avoid interest that you walk right into an even worse situation. Payday lenders will get their money somehow, it might just vary.
Follow the Rules!
You might not realize this now, but a late fee charge on payday loan repayment might be worse than any interest fee you face. This is because a late fee charge can continue to occur if you continue to miss payment. A situation like this can do much more damage then you had thought any interest might do. If you follow the rules, you will find things go much easier and that interest you dreaded so much initially is not as rough as you thought. Keep an eye out for anybody who promises you interest-free loans, because they are too good to be true. In the end, pay more attention to the rules you will face.
