This describes Kansas City Payday Loans and the alternatives they provide for low-income borrowers when compared to bank loans.
The banking industry has left millions of low-income borrowers out in the cold. They’re essentially shut out and ignored with high-cost products, unending fees, and stringent requirements for even basic loan products. Fortunately, low-income Kansas City residents have alternatives to access credit in an emergency.
Giving Low-Income Borrowers Access to Credit
Pay day loans give low-income borrowers access to credit when they need it. And they do it without strict employment and credit standards. Many consumers live paycheck to paycheck. They rely upon payday loans to get through a short-term emergency. That emergency can be ensuring bills are paid before payday, making home or car repairs, or paying for medication.
Kansas City payday loan providers are often criticized. Many claim that they charge high annual percentage rates (APRs) on their loan products. The truth is that the APR is an inaccurate tool. APR was designed to measure a loan cost over 12 months. Whereas, payday loans are typically over a two-week term.
Banks also charge checking account customers similar high-interest, short-term loans in the form of overdraft protection. These “loans” generate more revenue for banks every year than do payday loans.
Payday Loans – More Affordable Than Banks
Low-income consumers find pay day loans and other alternative financial services to actually be more affordable, easier, and less stressful than bank services. Banks are not designed to serve low-income households. They generate billions in revenue through checking account fees, paper statement fees, overdraft fees, bounced check fees, ATM withdrawal fees, and more. Consumers living paycheck to paycheck tend to pay far less by relying upon check cashing and payday loans with their predictable fee schedules.
Waldo Financial is a leading Kansas City payday loans provider offering affordable loan solutions for low-income borrowers in Kansas City with flexible repayment schedules and a focus on customer service.