Title Loan, Payday Loan or Pay the Overdraft Fee
Sunday, April 19th, 2009
Bank of America recently announced plans to increase their overdraft fees. When the price change goes into effect, their $39 overdraft fee will be the highest overdraft fee charged by a major bank.
The way these fees are “earned” is pretty sneaky. Most of the time customers are surprised to learn about their overdraft fees because they think if they use their debit card and the purchase goes through, they have money in their account.
That’s how a $5 breakfast at Panera Bread can turn into paying $44 for a bagel and coffee. The bank approves your purchase, then hits you up for the $39 fee. Even if you make a deposit before the end of the day, you still owe the fee for the priviledge of the $5 “loan.”
A typical California payday loan costs less; usually $15 for every $100 borrowed. When you borrow money from a payday or title lender, the fees and charges are clear, and displayed on your loan contract. Lenders aren’t trying to earn their fees by sneaking extra charges onto your bill. Expensive? Yes, but so is the overdraft fee and with payday and title loans there are no surprises.
With California Payday Loans or Title Loans of California you pay for the convenience of getting cash quickly, usually within 15 minutes of applying, and knowing that your past credit history won’t prevent you from borrowing money. Who wants to spend $44 at Panera anyway?