Five Myths About Payday Loans Debunked

Money management  •  April 10, 2022  •  5 mins read
Home  •  Blog  •  Money management  •  Debunking Myths About Payday Loans

Life often brings challenges that you didn’t expect. You might have a toilet overflow and damage your home, or you may get into an accident or experience car trouble. A seemingly harmless activity can end in broken bones and a trip to the hospital.

Along with being disruptive, these emergencies can be expensive. When faced with an unexpected cost, a fast payday loan (also known as a cash advance) could be the solution you need.

Yet, many people don’t apply for this type of short-term loan because of the poor reputation of the loans and lenders. So, join us as we help show the benefits of a payday loan by debunking some of the common myths associated with it.

Myth: All Payday Loans Have Hidden Fees

At ACE Cash Express, you will never have to pay a fee to apply for a payday loan, even if you are not approved. You won’t have to worry about hidden fees either. During the application process, we provide you with the breakdown of the fees and interest rates before you accept the loan, ensuring that you have all the information available before deciding.1

It’s important to ask questions and get all essential information before agreeing to any loan.

Myth: Payday Loans are Considered Secured Loans

A payday loan is an unsecured loan. When applying for loans, it’s best to know the difference between secured and unsecured loans. See the differences below:

  • Secured loans - The borrower gives the lender a form of collateral, such as the title to their vehicle. If the borrower doesn’t repay the loan, the lender can secure its repayment by selling the vehicle to cover the loss.
  • Unsecured loans - The borrower doesn’t have to provide a form of collateral. Instead, they may pay a bit more in fees to help protect the lender in the event that the borrower doesn’t repay the loan.

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Myth: Payday Loans are Only Offered In-Person

At ACE Cash Express, we offer the flexibility to visit brick-and-mortar locations or apply online. Depending on your state, you may be able to apply for an online payday loan, and with our fast online payday loan application, you can get an instant decision.1 Applying for an online payday loan at ACE can be done anywhere using your computer, smartphone, or tablet. If approved online, you can have your money direct deposited into your bank account by the next business day or, if eligible, pick-up cash same-day at one of our stores! 2

Ready to apply for a payday loan? Click here to apply for a payday loan online or visit your nearest ACE Cash Express location to complete the application in-store.

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1. All loans subject to approval pursuant to standard underwriting criteria. Rates and terms will vary depending upon the state where you reside. Not all consumers will qualify for a loan or for the maximum loan amount. Terms and conditions apply. Loans should be used for short-term financial needs only, and not as a long-term solution. Customers with credit difficulties should seek credit counseling.​ Populus Financial Group, Inc. is licensed by the Department of Financial Protection and Innovation pursuant to Financial Code Section 23005(a) of the California Deferred Deposit Transaction Law. Loans in Minnesota made by ACE Minnesota Corp. Loans in Texas arranged by ACE Credit Access LLC and made by, and subject to the approval of, an unaffiliated third-party lender.

2. For online loans, approval and funding may require verification of application information. Depending on ability to verify this information, loan funding may be extended up to two days. All loans subject to approval pursuant to standard underwriting criteria. In-store cash pickup of online loans is subject to approval pursuant to standard underwriting criteria and only available at ACE Cash Express locations in the state where you originated your loan. In-store cash pickup of online loans not available in all states.  In-store cash pickup of online loans requires valid, non-temporary government-issued identification. Online loans not available in all states

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