Bad Credit Cash Advance Facts And Trivia

Take some time to read so much of the written material posted online about payday loans in and you'll quickly find that most all of it seems have one thing in common. That's that in general it seems to make them out to be so simple and easy. That even with bad credit, if you have a job and a checking account that's at least 90 days old, all you have to do is submit an application, and odds are you'll qualify.

In reality though, if you were to take the time to do some more extensive research what you would find, is far more than meets the eye here. It's not just that simple and one indication of that is a surprisingly high number of rules, laws and regulations that govern how sites can operate. Not only that but to make matters even worse, they vary from state to state.

Here's an interesting factoid. Would you believe that there are more payday loan franchise venues in the US than there are Burger King and McDonald's restaurants combined? So there's a lot heckuva lot of them. Then what makes this fact even more interesting is a total of six states in the US don't even allow them to operate inside their borders. They've banned them completely.

So with a spider web of regulations in place and some states even outright banning them, you may find it surprising that some state lawmakers continue to pass new laws restricting them. Not only the lenders but also the borrowers as well, and that means you. For example in some states now, you can only borrow up to $500 at one time from a payday lender. No matter how badly you need the money.

Then as if that isn't enough, some states are even going so far as to pass laws restricting how many times you as a private citizen can borrow from them. Once again, as crazy as it sounds, it is true. In fact would you believe that some states in the US now restrict the number of times that person can access a payday loan site to only four times per year? Well believe it because it's true.

So really isn't a just that simple when you're reading about them online. And if you're like most people you're probably surprised to learn state lawmakers have taken it upon themselves to tell you that even if you need the money to eat pay your bills, you simply have to go without. So why do they do it? The reason it turns out, is that this new style of borrowing and lending is taking too big a bite out of bank and credit card profits.


Copyright (c) 2011 Andrew Scherer