Are there payday loans for debit card accounts?

Question

Are there payday loans for debit card accounts?

Answer 1

they are scams.. just dont go there

Answer 2

WOW! I truly wish that more people would give you more factual answers. And, Yes! you can do pay day loans with your debit card, or by companies that will provide you a pre-paid debit card by which to put your loan, and other money, on.

I would like to give you some 100% facts, from a truly unbiased point of view.

A payday loan is a short term loan by which you borrow money against a post-dated check,or draft when using your debit card, by which you pay-off before or allow to deposit on your next paydate or the following one. It is an emergency loan to cover an immediate temporary cash shortage, by which to cover a bill that must be paid before your next pay day.

Some advantages are; The fee for this loan, though not cheap, is generally less costly than overdraft fees, exceeding your credit card limit, and it will not effect your credit standing in any way. You get the cash, for emergencies, or to cover bills, due before your next paycheck, immediately.

Since these loans (with CFSA member businesses) are not connected to credit reporting, or the credit bureau, in any way, they cannot be used to build credit. Nor, if you were to fail, or default, on a loan, it will never effect your credit reports.

In general, the fees are usually around $15 for every $100 up to a loan of $500, and around $10 for every $100 over $500 to the maximun allowable loan. Government regulations require that these Flat Fees be quoted out as percentage rates (APRs). This would then mean that a $100 loan, taken out for 15days would have a (flat) fee of $15, which the government requires be quoted out as 365% APR. Reality is, it is still a flat fee.

The maximum loan you qualify for will be based on around 25% of your gross monthly pay. This is a proven, and common sense, calculation of what is generally reasonably payable by most people. this also means that the "poor" can not be "preyed" upon by payday lenders.

The above also indicates that you should not take out your maximum qualified amount from more than one lender at a time. Many people have gotten into trouble by doing this. Then they go and blame the payday loan industry for the trouble they are in by their very own personal choosing. They, by their own choice, loaned out beyond their means by going to more than one lender.

An IMPORTANT RULE TO FOLLOW!:

Loan only from established, landbased, lenders, who are members of CFSA. Loan only from one lender during any given time.

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True. Payday loans are not for regular use.

True. Payday loans should only be used for temporary emergencies. When you fall short of cash, needed immediately, before your next paycheck.

False! Compounded fees and interest.

There are no compounded fees or (in reality) extraordinarilly high interest. The interest (APR) quoted by payday lenders, and extorted by anti-payday loan spinmasters, is a FLAT RATE fee that the government requires be calculated and quoted as an APR. In all reality it is, and always is, a flat fee. Even if you default on the loan, with legitimate CFSA associated lenders, the Flat Fee does not change nor does it compound, there is no added interest, and the only additional fee may be a one time fee for the returned check.

Roll-overs and re-loans are not recommended, even by legitimate CFSA associated lenders. If you choose to do so, it is by your choice that you do, and you will re-pay the flat fee, again, each time.

False! If you fail or default, their collection policies will make your life miserable, and will ruin you credit.

CFSA member establishments are not associated with any credit reporting agencies, or the credit bureau. They are not permitted to practice aggressive, harrassing or intimidating collections. And!, they are not permitted to take their clients to court.

MOST IMPORTANTLY. All CFSA members offer payment plans, AT NO ADDITIONAL FEE, by which their clients, who are in difficulty, can pay off, and get out from under, their loans.

Answer 3

AVOID PAYDAY LOANS.

These guys are money sucking pirates, work out your bills if you can, declare bankruptcy if you can't, but onece you get in with those bottom feeders, you  will end up paying stupid interest rates, it is just not worth it.

Answer 4

You have to have a checking account to have a debit card, right?

Payday loans are really NOT the best way to go if you need money. I would recommend just about anything OTHER than using a payday loan service.  The annual interest rates are well over 200% in some cases, because they also use "fees" that do not count as interest. (That's how they get around usury laws)  They are also a trap.  If you can't pay back the loan on time, they will "extend" the debt, for another "fee".  It goes on and on, with the debtor just paying the fees and never paying down the actual debt.  Keep in mind that this is, essentially, free money for the payday loan institution, and this IS how they make their money.  Please avoid this trap...go without lights for a few days if you have to, or apply to charities, but please do NOT go this route.  It just keeps you in perpetual debt. Also, if you don't pay the fees to extend the loan and you can't pay the loan in full, they will cash the check, then have you prosecuted for a bad check.  You could end up in jail if you go through a payday loan service! It is just bad, all the way around.

As for your initial question, if for some reason you have a savings account with a debit card, or have your paycheck put directly on a debit card, yes, you can still use payday loan services. But keep in mind that the interest rate or fees will be even HIGHER because they will not have the option to threaten to throw you in jail if you can't pay. However, they WILL run the debt through several times a day, every day, until it is paid, so if they get your money before you do, you will be right back, borrowing the money all over again.

Answer 5

Whoa!

Don't go there.

Even if it's possible (which I doubt) it's the worst possible idea to lock any debt to a Debit card.

Payday loans are a weight on your back that just keep you enslaved to them, once you start it's tough to get out from under.

If you need cash for a good reason (not new shoes or an iPhone) go talk to the Loan Officer at your bank - even they would rather lend it to you than you get hooked on payday loans.