Does a Check Cashing Store Give You a Payday Loan?
Check cashing stores are outlets that help people with no bank accounts to cash their checks. They charge a fee and that usually gets deducted from the check’s original value. For example, if you went with a check of $400, they would give you cash worth $390, and $10 would be treated as the fee. Checks of any kind- from payroll loan checks, personal checks to government checks etc. can be cashed in these stores. However, that is not all that they do. They also offer numerous financial services such as bill payments, money orders, currency exchange, debit and credit cards; and even payday loans. Yes, check cashing stores also provide payday advances.
When it comes to payday loans, these stores function like any other store based payday lenders, but there is a catch. In these outlets, you have to write a check before you are funded. It is actually a part of the application process. For example, if you need a cash loan of $500, you have to write a check of- let’s say $600 (the actual amount may differ) with or without an issuing date. Some stores also work as online lenders in many states in the US where you can apply online.
Why Is It Not Good to Go to a Check Cashing Store?
As we just mentioned, you have to first visit a store physically and carry your documents with you. You still need to establish your ability that you are writing a check that is authentic, and your account will have money on the due. Therefore, a proof of income and bank details would be required. Another thing that borrowers like you do not like about the check cashing stores is that the check that you write does not have an issuing date, and it is the store that gets the freedom to put a date on the due- or at a time that suits it. It could lead to bank frauds at times.
On the other hand, you have many direct lenders such as EZPaydayCash that offer you payroll loans online without any office visit. On top of that, you don’t have to write a check in advance. On the due date, the payment will be made automatically without any action from you. This is a much safer business in comparison and saves a lot of time. The application process takes hardly a few minutes which can be completed via a smartphone or computer. Therefore, take out a payday loan online, and do safe borrowing.