freedom cash lenders returning customer
https://freedomcashlenders247.com/Smith wasn’t just getting part of his paycheck early, but also losing money by paying fees for the advances.
Most companies that provide cash advances reject comparisons to traditional lenders, but to understand the cost of an advance, it’s helpful to look through the lens of a loan.
Let’s say you use a cash advance app to borrow $200 today. The app charges a $7 express fee to get the money in a few hours instead of two or three business days. The app also asks for a tip. Some paycheck advance companies say users tip $1 on average, so add that to the total.
You’ve paid $8 to borrow $200. If your paycheck comes in seven days, that fee would equate to a 208.6% annual percentage rate — much higher than the 36% maximum APR consumer advocates recommend on small loans.
“The fees seem very low at the time, but they stack up,” Smith says. “It gets out of control fast. I think that’s what people don’t realize with those apps.”