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What is a storefront payday loan and how does it work?

What is a storefront payday loan?

Many payday loan agencies operate through payday loan stores where you arrange for a short term loan in person. If you are looking for storefront payday lenders, you probably will not have to search very much. The US abounds with thousands of retail payday lending store you can easily walk into and take out a small loan to get out of your immediate cash crunch.

How storefront payday lending works

Storefront payday lending is simple. The finance charges and fees demanded by the lender are usually fixed by the laws of the state where the store is located. When you take out a payday loan, the lender may ask you to deposit a postdated check as security. On the day the loan matures, you are expected to return to the store to repay the loan in person. If you fail to repay the loan, the lender may process the check normally or through electronic debit from your checking account.

What makes retail payday loans more advantageous over online payday loans?

Retail payday lending has several advantages over online lending. When you go to a retail lender, you deal with your lender in person so you know who you are dealing with. Moreover, by dealing directly with the payday lender you can be assured that the lender abides by your state's payday lending regulations.

Online payday lending makes it difficult to locate where the loan originates, which makes it harder to determine of the loan is legal in your state. In some cases online lenders have been known to overlook state regulations that fix how much interest payday lenders can charge, how quickly can they demand repayment, and how can they collect on unpaid debts.

It is true that unlike online lending, retail lending lacks convenience when it comes to meeting immediate monetary needs. To get a retail loan, you need to visit a lender during business hours, whereas an online loan is available anytime. Yet, when it comes to transparency, retail lending is a much safer option.

How to find storefront payday loans near me

Want to find storefront payday lenders near you but don’t know how to do it? Here’s the step-by-step process to do it.

  1. Go to google and type ‘storefront payday loans near me’ or ‘cash advance loans near me’
  2. Look at your available options near you when the search engine shows the results
  3. Strike out the lenders from your list who operate online
  4. Note down the names of lenders who have a physical address

Once you have made a list of storefront payday loan companies, check out their website to know about the interest rates and fees. If you can afford to pay interest rates and fees, then visit the store and submit the application form.

Some of the top storefront payday loan companies are Cash Store, Speedy Cash, Check Into Cash, Check N Go, ACE Cash Express, Advance America, etc. Just keep one fact in mind. These companies don’t have store locations in every state. If you would like to work with any of these storefront payday loan companies, then check if they are operating in your state.

5 Steps you must take before borrowing a payday loan

  1. Check if the state government approves the payday loan business.
  2. Search payday loans by directories by city to shortlist storefront lenders in your area. ’
  3. Compare the loan amount and repayment terms to check your affordability.’
  4. Read the loan agreement to know about the hidden fees and interests.’
  5. Check out the online reviews of the previous borrowers. ’

What if you can’t pay off a storefront payday loan?

As it’s, the interest rate on a payday loan is very high. In fact, if you compare payday loans (both storefront and online) with credit cards and personal loans, then you’ll come to know that cash advance loan carries the highest interest rate. The average interest rate of a credit card is 19% whereas the APR on a payday loan is 400%. There is absolutely no comparison between the two.

For average consumers, it’s very tough to pay 400% interest on a payday loan. If you have taken out storefront payday loans and can’t repay them, then you can take these 3 steps to get out of debt.

  1. You can enroll in a storefront payday loan consolidation program to payback lenders in affordable monthly installments. .
  2. You can enroll in a storefront payday loan settlement program to pay less than what you owe.
  3. You can enroll in the Extended Payment Plan to freeze the interest rate and repay the outstanding balance in 4 equal installments. .

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