Wells Fargo has entered the payday loan business and the bank is now one of many taking such action. Bank of America, Wachovia and JP Morgan Chase are a few of the other big name banks to enter the payday loan business along with Wells Fargo.
What is a payday loan?
A payday loan is a way of obtaining a short-term cash advance, generally ranging in amount from a low of $300 to a high of $1,500 to cover unexpected bills when you run short of cash. A payday loan is an unsecured advance meaning that there’s no need to put up your home or any other asset as collateral. Repayment is dependent upon the amount of the loan being automatically drawn from the recipient’s bank account on the date that it is due. They are called payday loans because in order to get one you need steady employment and have your paycheck directly deposited to your bank. They are short-term loans because repayment generally happens two weeks after the funds are advanced, coinciding with your payday schedule.
The application process is fast and convenient and all transactions happen electronically and automatically. That’s why payday loans make sense for many situations. And because there are no restrictions on the way the funds can be utilized, people use the money for any reason. Some people need a payday loan to cover emergency automobile repairs or to make credit card payments to avoid paying a late fee. Other people use the funds to cover unexpected medical expenses and some even use the money to pay for trips that they need to take.
Wells Fargo entered into the payday loan business because it understands the need for this type of short-term cash advance arrangement. The bank itself offers loans to its customers through its ATMs, online, and in their branches.
Payday loans weren’t even invented back in the days when Wells Fargo moved money across the Wild West in stagecoaches. Long the target of Jesse James and Frank Dalton and other bank robbers of the era, Wells Fargo has survived and flourished to become the best-known brand in consumers banking and, soon, in direct deposit cash advances for consumers.
You don’t have to worry when you borrow money from an established payday loan provider. Most of the big payday loan companies are licensed by the government agency that regulates the payday loan industry in the state in which the lender is licensed to operate. So go ahead if you need the money, contact a payday loan provider. Wells Fargo feels confident entering the payday loan business and you should too!