When people are dealing with cash loans, there may be many opinions. They have different opinions about the loans, and sometimes those are not fully correct. People keep saying “my opinion …” and they deliver their opinion when they find that the loans are not as what they expect. However, opinions are just opinions. There are bad and good opinions, but sometimes they are not based on the fact. In this case, there are some fallacies about cash loans that happen because of peoples opinions. Although these are only opinions, some people may believe them, and this leads to certain fallacies. The first fallacy is about the price of cash loans. Some people think that cash loans are expensive. Even, there are some people who claim that the cash loans are the most expensive loans from other loans. In this case, those claims are not fully correct. In fact, there are still other types of loans that can be higher. Furthermore, the high interest is hand in hand with the characteristic of the cash loans. Cash loans provide loans without considering the previous credit record, so people still can get the loans although they have bad credit record. Then, this loans are for short term only, so this can be so useful for the urgent need. Because of those characteristics, then it is normal if the loans may have higher interest than other loans.
Another fallacy is about the duration of loans. Some people think that cash loans can be used as the long-term financial solution. Actually, the loans are only suitable for the short-term solution. That is why it is not recommended to use the cash loans for the regular needs. The cash loans will be more helpful when it is for the urgent needs and the borrower has problem with the previous credit. Since it is for emergency funds, then it will not be suitable for the long-term financial solutions. Moreover, other people also say that customers cannot complain to the online lenders. In fact, online lenders commonly provide 24/7 customer services. It means that they can deliver their complain whenever they want to. Even if there is no 24/7 services, customers still can complain on the working hours and lenders will accept it since it has been basic regulation of lenders or financial companies.
There is also fallacy related to the services of the lenders. Some people think that online lenders are not transparent. In fact, online lenders always mention all the terms and conditions that apply in the online cash loans. When customers register, they already get the whole information about the term and conditions, including the details of interests. Commonly, the problem is that customers does not want to read the long explanations of the documents. That is why they are surprised when the interest of loans bring them heavy burdens on their finance. Actually, if they already read thoroughly, this may not happen. Then, next fallacy is about the regulation. Some think that online lenders do not have legal regulation and they are not guided by the law. In fact, all types of lenders, including the online ones, are certified by the state. When they are going to build a company, they pass through certain certification process, that is why they are regulated.