LEARN THE FACTS ABOUT PAYDAY LOANS
MYTH #1: Payday loans have exorbitant interest rates
Fact: Payday loans are not meant to be paid back on an annual basis. They are meant to be short-term loans with 1-2 payback installments. Here in Canada, licensed lenders need to adhere to the Payday Loan Legislation which governs the interest rates. The rates are accrued over a two-week period and are between $18.00 and $23.00 for every $100 borrowed, which is an interest rate of 18% - 23% for a 14day loan.
MYTH #2: Payday lenders target mainly seniors, minorities, and poor customers
Fact: The large majority of payday loan customers are hard working, middle class adults who have a sudden, unexpected financial emergency and do not have sufficient savings in order to cover the expense. Over 70% of Payday loan applicants are under 40. And, according to the Credit Research Center, earn between $25,000 and $50,000 annually. All iCash payday customers are required to have a regular steady income and an active checking account.
MYTH #3: High payday loan fees are simply raking in huge profits for short-term lenders
Fact: Short term lending is very expensive. Most banks actually no longer offer such short lending times. The cost for lenders to run their businesses: pay employees, maintain online services, update 100% online loan application process, etc… is high. Making sure that your lender is properly licensed is the best way to make sure that you are dealing with an honest, hard working lending firm.
MYTH #4: Most loan customers cannot pay back their loan on time and that's where the lender "gets you!"
Fact: Statistically, over 90% of payday loan customers pay back their loan on time. The fact that a steady stream of income and an active checking account are required to be approved for a loan makes it that most people have the means to pay back on time.
MYTH #5: Payday lenders are loaded with hidden fees
Fact: We cannot speak for all lenders out there, assuredly there are probably a few that have hidden fees somewhere in the contract. However, iCash prides itself on have no hidden fees. All fees are clearly explained and stated prior to signing a contract with nothing popping up at the last minute unexpectedly! It is one of our values.