Online lending has exploded in use. Borrowers have more options than ever before, and they can get quick cash in their bank account within 24 hours. Though it is an option and an outlet to get cash quick, it may not be the best method. The below explores how advance loans have evolved from payday loans, and how borrowers can take advantage of these industry changes.
Why Payday Loans Are Controversial
Payday loans have a few problems. The quick turnaround leaves a lot of people caught off guard and buried in extra fees. Payday loans are a type of cash loan that is typically paid off within a pay period or two. The loan only lasts about a month, though some providers offer six-month payday loan terms.
Regardless, payday loans have a bad reputation for being bloated with unfair fees and penalties. This has happened because, well, it is partly true. Many lenders, in fact, have seemingly abused this offering through penalty-prone systems that take advantage of anyone paying a day late.
A Glance at Advance Loans
Advance loans have evolved from payday loans. The name “payday loan” has a bad reputation, so advance loans have come to help in the image issue of cash lending. In reality, advance loans are not fundamentally different from payday loans. They still boast high fees. They still should be exclusively used for individuals who need some cash right away and to use it for emergency purposes. There is nothing wrong with getting an advance loan for fixing a car or making some single-0time payment that is essential.
MaxLend Loans in the advance loan program have one very clear difference from payday loans. Payday loans are paid in a short time frame. Advance loans can be paid at some point down the line. Typically, advance loans have a repayment window of about six months to one year. Comparatively, payday loans are paid in 90 days.
Advance loans have many of the same problems, which is why all borrowing must be extremely responsible. Borrowers should have a system established to repay the loan on the terms of the agreement, with little flexibility.