The fact is though that the online lending sites aren’t the only venues for borrowing money. So then what are some of the other reasons that made them so popular?
Now there is always the local pawn shop in town but a closer you look at your local pawnbroker, the worse appeal he has in a side-by-side comparison check with online lenders. For instance your local pawnbrokers do want you to leave something of value for collateral. Also he very rarely will loan you anywhere near what your collateral is worth. Then when your loan comes due and you can’t make your payment it’s gone.
Of course there’s always the option of approaching your local bank or some other type of community-based lender. Now they aren’t going to charge you as much interest as you will pay with online loan but they have limits on how little you can borrow. Most of them will only go as low as $3000 and even then you have to pass a rigorous qualifications process. If your credit rating isn’t in top shape you can pretty much forget about it.
Then you always have the option of borrowing from a friend or relative, and chances are that if you’re willing to do the legwork and are determined enough you can probably find someone to loan you the money. But all too often these types of personal loans lead to problems. For instance even after you pay the loan back you’ll still owe the lender a favor.
So when all the options are looked at and gone over, it’s not hard to see why more people than ever are simply giving the mouse a click for a loan and stepping over all the hassles and problems. For one thing you don’t need perfect credit for a payday lender. In fact you can even have bad credit. Also there’s no collateral required like at your local pawnshop.
Then one last thing to consider, is the with so much being said online about the high-interest rate of these high risk loans, is that your pond shop and your local banks also charge interest. Now you may have a higher interest rate with an online loan but it’s paid off in two weeks.
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