Wells Fargo has started giving out payday loans, making it one of many banks to do so. Along with Wells Fargo, other big banks like Bank of America, Wachovia, and JP Morgan Chase have started offering payday loans.
What is a payday loan?
A payday loan is a short-term cash advance that usually ranges from $300 to $1,500. It can be used to pay for unexpected bills when you don't have enough money. A payday loan is an unsecured advance, which means that you don't have to put up your home or any other asset as collateral. On the due date, the loan amount will be automatically taken out of the recipient's bank account. They are called "payday loans" because you have to have a steady job and have your pay sent straight to your bank account in order to get one. They are short-term loans because you usually have to pay them back two weeks after getting the money, when you get paid.
The process for applying is quick and easy, and all transactions are done electronically and automatically. Because of this, payday loans are often a good idea. People use the money for anything they want because there are no rules about how it can be used. Some people need payday loans to pay for sudden car repairs or to pay their credit card bills on time so they don't have to pay a late fee. Some people use the money to pay for unplanned medical bills, while others use it to pay for trips they need to take.
Wells Fargo got into the payday loan business because it knows that people need this kind of quick cash advance. The bank's own ATMs, website, and branches are all places where customers can get loans from the bank.
Back when Wells Fargo used stagecoaches to move money across the Wild West, there was no such thing as a payday loan. Wells Fargo was a target of bank robbers like Jesse James, Frank Dalton, and others for a long time, but it has survived and grown to become the most well-known name in consumer banking and, soon, in direct deposit cash advances for consumers.
When you borrow money from a company that has been around for a while, you don't have to worry. Most of the big payday loan companies have licences from the government agency that oversees the payday loan industry in the state where the lender is licenced to operate. So go ahead and talk to a payday loan company if you need money. Wells Fargo isn't worried about getting into the payday loan business, and neither should you.
