The chicagotribune.com has been of late, trying to educate its readers on the proposed changes which, if effected, will be a big relief to the borrowers of the payday loans. This type of loan has been there for quite a long time and it has attracted many people due to the current requirements which are easy to meet. All you need is a bank account which has a good standing, identification, and source of income and the loan is yours. Lenders don’t have to conduct a credit check on the borrower before offering the loan. But if the new rules are passed, a credit check will be a must before one gets a payday loan.
It will be hard for a borrower to get a loan if questions linger on his capability of repaying the loan back. A credit check will be a must in order to verify if indeed the one who wants to take the loan will be able to repay it back on time without rolling it over month after month.
Why is it that people still go for payday loans even after reading reviews online on borrowers having incurred a lot of losses due to the high interest rates that are charged by the lenders? According to the chicagotribune.com, getting a payday loan, unlike other loans, is just a click away. You will get your money in minutes at the comfort of your house or office; and before one realizes what they are doing, they already owe some lender somewhere.
If the new rules are passed, it will be hard to get this few dollars to carry you through to the payday. Most borrowers talk of flexible, repayment terms, but they don’t tell the borrowers the cumulative cost at the end of the day. The rules will enlighten the borrowers of the exorbitant costs of recurring payment of this so called fast loans. Lenders will have to make sure that they explain everything that is to be known about the loans, no hidden terms or charges. And for the borrowers, if you have to roll over a payday loan, it will be mandatory that, every month, you must pay something to the lender. If the loan takes 3 rollovers before it is cleared, the borrower will be given a 30 day breather before deductions resumes again.
Borrowers are crossing their fingers for the new rules to be passed as the advantages of the rules are higher than the disadvantages.