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1. Payday loans hurt your credit

The most common misconception about payday loans is that it will negatively affect your credit score. While establishments that run credit checks will affect your score negatively, most payday advance businesses do not run credit checks.

2. Qualifying is difficult

Qualifying for a payday advance loan is actually pretty standard and simple. Most payday loan lenders ask that the recipient be at least 18 years old, have a confirmed form of repayment, is a US citizen, and has a checking account. Of course, qualifications vary by establishment, so do some looking around if you have trouble qualifying for one place.

3. Payday advances take advantage of minorities and the poor

A lot of people think that payday loan lenders take advantage of certain minorities, low income households, and students. However, like any lender, payday advance establishments offer a valuable service to their community. In addition, the loans are completely voluntary. There are always going to be misconceptions surrounding payday loans, but they often help people of all income levels out of a temporary tight spot.

4. All payday loan companies are predatory lenders

There are always going to unscrupulous practitioners in every industry, and sure the payday loan industry is no different. However, as long as you do your research and read all agreements thoroughly, then you should be fine.

5. The interest fees are insanely high

Interest fees are never a pleasure to pay, but the fact is that it is pretty difficult to find any loan without interest. Myths of insatiable interest fees have surrounded payday loans for years, but unfoundedly so. While some times, a person who takes a payday loan out will get caught up in a "revolving door" of pay backs, making the interest raise over time, the initial interest fee usually is not all that high.

6. Only employed individuals qualify

Actually, there are several payday lenders who lend to those who do not have a verifiable source of employment, as long as they have some other form of payment verified. Many payday advance lenders offer a few different types of loans, and will be more then happy to discuss all of your options with you.

7. Failing to repay will land you in jail

Not paying off any loan result in a fee or penalty, but failing to pay a payday advance loan on time certainly will not result in any jail time. At worst, you will get charged and extra fee and if enough time goes by, your case will be sent to a collection agency. However, all of this is standard for any overdue loan, there are no additional repercussions for payday loans.

8. Applying for payday loans means no other loans

Despite what you may have heard, applying for and receiving a payday loan will not affect your qualifications for other types of loans. In some cases, if repayment does not occur and you are sent to collections, that may affect future lending opportunities. However, this is another standard loan procedure, not exclusive to payday advance loans.

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