ThinkCash.com is a payday loan website that offers quickly approved loans of up t o$1,000 for first time applicants. If you apply for a payday loan through ThinkCash.com and are approved before 6 pm Eastern Time, you can have the full loan amount deposited into your checking account by the next business day.
A payday loan is a specific type of loan. Sometimes companies refer to these types of loans as “cash advance” loans. These loans are meant to act as an advanced payout of your paycheck, and are intended to be paid back quickly. Each state has various rules and regulations regarding the approval and dispersement of payday loans. Some states have outlawed the practice, while others have few regulations that limit payday lenders.
Why Would You Need ThinkCash.com?
Payday loan companies target people who need cash immediately and have no other means of receiving it. Because of the often desperate circumstances of the people who apply for these types of loans, these companies are able to charge high interest rates, with the nationwide average being 390% APR.
Defendants of the payday loan industry argue that low-income Americans are often given no alternative to payday loans, since traditional banks will not help them and other methods of aid take far too long to apply for and receive. They claim that payday loans provide a necessary and worthwhile service, and that the APR is so high because the industry carries with a high default rate that companies must absorb.
So Is Think Cash a Scam?
ThinkCash.com is not a scam, per se, just like the payday loan industry is generally not a scam. But many people believe, however, that payday loan companies are taking advantage of people in difficult financial circumstances, and that the truth is they are likely doing more harm than good.
The Consumers Union is actively against payday loan companies, not just because of the services they provide, but because of the manner they use to promote them. Consumers Union says that payday loan companies target young people, people in the military, and people who are generally uneducated about the loan process in the first place. They say that people who receive these loans are not made aware of the “debt cycle” they are about to enter into.
The bottom line with payday lending companies is that, with ThinkCash.com in particular, if you borrow $1000 at their preferred rate of 198.5% APR, you will end up owing them $1872.00, which is supposed to be paid in full almost within two months of receiving the funds.
The issue here is that very few people who have such desperate need of cash to apply for a payday loan to begin with, will have that kind of extra money laying around so soon to pay back this loan.
In addition, using an online payday lender raises all sorts of questions: what rules and regulations are they following? Those of the state they are established in or those of the state you are borrowing from? Are they following any rules and regulations? In the state of Illinois, for example, it is illegal for a payday loan company to charge more than $15.50 in interest for every $100 borrowed. ThinkCash.com far exceeds this legal limit. But if you use an online company for a payday loan, you may not be eligible for state protection.
The truth is that payday loan companies offer consumers an “easy out” of their immediate money problems, but consumers pay for this privilege by having far worse money problems with the payday lender later.
Note: If you’re interested in learning more about Payday Loans check out our detailed guide, “Payday Loans Explained: Should You Ever Get One?” for more info.