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Published on October 2, 2013
Mobiloans’ promise of fast cash may sound enticing, but don’t be fooled! It can be far more expensive than typical payday loans. which are themselves not exactly the cheapest bad credit option around. They promise to be better than overdrafting
on your checking account, but in reality, they’re one of the worst options out there.
“Easy to understand pricing?” Not quite
Mobiloans presents itself as the alternative to overdrafts during a cash emergency. You open an account with Mobiloans and link it to your bank account. When you open the account, you’re given a credit line from $20 to $1,500. If you find yourself short of cash, you can go onto their website and get money deposited directly into your checking account. You then pay back Mobiloans, and avoid overdrafting on your checking account.
And even better: according to Mobiloans’ terms and conditions:
The interest rate applied to the unpaid principal balance…is 0%.
Fantastic, right? You can avoid overdraft fees and you don’t have to pay interest. Not so fast: if you’re strapped for cash, Mobiloans can bleed you dry.
Start bad, end worse
To start off, you have to pay an upfront finance charge of whatever amount you take out:
To put that into perspective, credit cards don’t charge more than 5% for cash advances. But that’s just to start with. If you can’t pay back your loan, you get into even deeper trouble. Twice a month, you have to pay a “fixed finance charge” depending on the unpaid balance.
Category: Payday loans