San Diego Cash Advance Loans Services

Online, August 7, 2013 (Newswire.com) - Even if the alternative financial services are convenient for their users, they hide more fees than banks do. San Diego cash advance loans services, cash advance services, rent-to-own agreements, and pawnshops are examples of alternative financial services that people use every day. Alternative financial services charge exorbitant rates of interest and fees on their services and products. A consumer using an alternative financial service to cash her or his paycheck usually pays high fees, sucking out a good part of the check. Lets say that customer is paid every week and use the payday services; then one is spending money that could have been saved for something else. If the reason for not choosing a bank over a cash advance service is the bank fees, chances are customer is paying more using the cash advance services anyway. The bank may charge customer a one-time overdraft fee if he or she is over the limit, but your cash advance service will charge customer every time he or she cash his or her check.

The most popular cards used by the unbanked and the under banked are stored-value cards. The stored-value cards are prepaid cards that represent a fixed amount of money. There are two kinds of stored-value cards: single purpose or closed loop cards, like gift cards to purchase goods and services at a particular retailer, and the multiple purpose cards or open loop cards, which customer can use at different retailers. The multiple purpose cards are the most used; government agencies sometimes use them to pay beneficiaries if a beneficiary does not have a bank account. The cards can also serve as a method of payment by an employer who charges the card with money. Using stored-value cards is not cost effective. Users must pay high activation, annual or monthly, and ATM transaction fees. Users find it hard to keep updated on their balance, and are caught by losing funds because these cards typically have an expiration date.

And there is no protection in case a card is stolen or lost. They are worse than cash. Alternative financial services are less stable and secure than banks. Using the alternative financial services does not help consumers build a positive credit history for future big expenses. When customer does not have a bank account, customer is at risk of theft or robbery. People find it difficult to save money if they have no bank account. By using the alternative financial services, users often cannot save money at all. Alternative lenders operate not only through their stores, but they also have online services as well, where users can simply go online, apply for San Diego cash advance loans, and have the money deposited into a bank account. The under banked often use such online services, or Internet lending services. An acquaintance confessed to me that he had to pay back almost $600 on a $225 loan, which is unconscionable.

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