Is 100 Day Loans Legitimate or Scam?

by loans on June 4, 2013

Lots of people want to know if 100 Day Loans – a payday loan company is legitimate or a scam? Well to explain in short – yes it is a legitimate payday loan company but they cannot give a loan to keep for 100 days. (And why would you want to keep a loan for 100 days? The interest will be too much to pay.)

If this is what you wanted to know and are interested in a loan with them, you can apply for a payday loan with 100DayLoans.

They are just another payday loan company. However the benefit with them is that since they are a popular payday loan company, they have a large customer base and therefore may offer you a loan at lower rate than other lenders, but forget getting a loan for 100 days.

Click here to visit 100 Day Loans website and read at the top of the page. They have clearly mentioned:

Please note that, while certain lenders may offer up to 100 days to repay a loan, a 100-day repayment period is atypical. Most consumers can expect a significantly shorter repayment period. 100 Day Loans encourages you to confirm your loan repayment period with your lender prior to finalizing the loan.

Or you can get a low rate loan with us. We offer great benefits and have partnered with a Delaware lending company that has made it to the exclusive Inc. 5000 list three times in a row. Our rates are low and your loan is almost guaranteed.

Why would a lender who is already taking a risk by giving loan till next payday offer you a loan to be paid back after 100 days? No payday loans don’t work like that.

In short lets explain how payday loan works: You need cash but you need only a small amount. The problem with small amount is that banks are not willing to take risk and the work involved to lend you that money. The small profits on small cash loans are not worth for the banks. It simply does not make any business sense to them. And moreover most people looking for small loans have a bad credit. Banks doesn’t give loans to people with bad credit. So what do you do? You go to a payday lender. They know that you wont get this money from anywhere else so they make use of this business opportunity by giving you the cash you need but at a very high interest rate. You need the cash, its urgent, you are least bothered about the interest rate – you sign the loan agreement and take the loan.

Since it is a high interest rate loan, it is important that you pay it back as soon as possible to make sure the interest does not escalate into something that you may not be able to manage and payback. This is the simple reason why lenders do not want to give you much time to payback. If they start giving loans for such a long time with high interest rates running 500%+, we bet no one will ever pay them back. They will be out of business sooner or later.

Then what are 100 Day Loans? Is it legitimate or is it a scam?

100 Day Loans is nothing but a great advertising idea to make loan seekers apply for a payday loan. Once you apply at their website you will realize that its just another normal payday loan. Had they not advertised “100 Day Loans” your chances of signing with them would have reduced by 50%. That one term is giving them business so why not?

Technically its not a scam. Yes they do provide loans, but they can’t give it for 100 days.

Many hundreds of thousands of people are actually searching for “100 day loans” in the search engines to get a loan from them. Unfortunately they are missing on an opportunity to shop around for a lower rate loan provider.

If the lender knows they came searching with the keywords “100 day loans”, which can be easily tracked, don’t you think brand value will come into play and these people will be offered the same loan at even higher rate? Frankly we are not sure about the rates – but what we are absolutely certain are that they can’t offer a loan for 100 days.

Yes they may be legitimate payday lenders, but they cannot offer you a loan for 100 days. If you still want to try your luck you can click here to visit their website and apply for a loan.

What if you actually get a 100 Day Loan?

Ok. Live in fools paradise if you want to, but lets do some maths to know if by chance someone there actually got a loan for 100 days (again that is just not possible, we are assuming to do some calculations).

Lets assume you got a loan for $100 for 100 Days at a interest of 638.75%. (Taken from http://paydayloansonlineresource.org/average-interest-rates-for-payday-loans/ ). After 100 days you got to payback this amount:

Amount Borrowed: $100.00
Loan Term: 100 days
Loan Fee: $175.00 per $100
Calculation:
To borrow $100.00, you will pay a $175.00 finance charge plus the amount borrowed. Your total repayment will be $275.00.

Even if you do get a loan for 100 days you end up paying $275.00 for a $100.00 loan. Almost three times the amount in 3 months. Will you take such a loan?

What to do when you need a loan?

1. Try to avoid payday loans. If you take one, you will take another and then some. Your life will start depending on these loans and you will be in a financial mess. You should avoid this at any cost.

2. If you need cash for an emergency try asking your parents, relatives, friends, or your boss. If you get a loan from them – nothing beats it. You won’t even have to pay any interest on it. Make sure to repay as soon as possible.

3. Try a loan from credit unions. They offer loans at much lower rates and have very relaxed terms.

4. If all of the above fails, you can give payday loans a try. However do some research before applying for a payday loan. Look for interest rates, hidden terms, late fees, rollover rates (you shouldn’t rollover but just in case), finance charges etc before finalizing a loan.

Go for the lowest interest rate and flexible loan terms. If you are well salaried and have an above average credit you must negotiate the loan rates with your lender. Chances are they will lower the rates. You see if risk is less, lenders are willing to lower rates. If they see less risk in you, they will lower the interest rate.

Some important points if you have taken a payday loan:

1. Never rollover a loan. Rollovers are costly.

2. If you don’t have cash to payback, talk to your lender at least 2 days before your payday. They must have a solution – a cheaper one than the one they will offer on the payback day.

3. Another option is to close the first loan, then apply for a second payday loan and negotiate the rates. Because you have successfully paid back the first loan chances are that your lender will lower the rate on your second loan.

4. Payback your loan in time. This should be done vigorously. Be very serious in paying back. These high interest loans can create a debt you may not be able to get away from. If you go into bankruptcy no one will give you a loan for a long time.

5. If you get a loan with very high interest rate you should keep paying your lender partially to stay clear of a huge debt that may follow.

6. If you are a regular loan seeker, you must abreast yourself of payday loan laws especially in your state. If your lenders are not following the laws send them a reminder or complain to the related authorities.

7. Never borrow more than 30% of what you make in a month. Anything more will get difficult to payback.

Disclaimer: Some of the links in this article may be affiliate links and may help us generate a commission if any of the visitors click on those links and apply for a payday loan and the loan is approved.

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