You have heard of payday loans and title loans, and you are well aware of how dangerous both of these types of bad credit loans can be. But what exactly is a check cashing store on Atlantic BLVD, and how does it relate to the subprime financial products and services you are already aware of?
Many people are paid in the form of checks, and if they do not have a traditional bank account or are buried in overdraft penalties, cashing those checks can be problematic.
That is where check cashing places near me come in handy. They provide check cashing services in exchange for a fee, which is usually a flat cost plus a percentage of the value of the check being cashed, ranging from 3 to 5%. So, if you wanted to cash a $1000 check and a check casher charged a flat $5 cost plus a 3% fee, you would get $965 in return for their check-cashing service.
The nearest check cashing store also provides other financial services similar to those provided by banks, but for unbanked or underbanked people. Money orders, prepaid debit and credit cards, bill payments, payday loans, title loans, and other short-term and bad-credit loans and services are among the services offered by firms and locations.
It is important to remember that when we talk about customers who frequent check cashers and other subprime financial service providers, we are talking about a sizable portion of the US population.
According to the most recent estimates from the Federal Deposit Insurance Corporation’s (FDIC) 2017 household survey, 8.4 million U.S. households (6.5 percent of all U.S. households) are unbanked, meaning they do not have any savings accounts, checking accounts, credit cards, or other bank-provided financial products.
Another 18.7% of households in the United States (or 24.2 million in total) are unbanked. These families may have a savings or checking account with a legitimate financial institution, but they also use financial products and services from places like title or payday lenders outside of the conventional banking system. In 2017, a non-bank check casher was used as an income source by 23.7 percent of unbanked families and 3.8 percent of underbanked households.
Check-cashing company critics argue that they are predatory and that their costs are substantially higher than those charged by a typical bank, putting households that rely on their services worse off than those who just have a checking account and can cash checks for free. However, a recent Business Insider article offers some insight into why people with bank accounts might choose to use check-cashing services, including the notion that check-cashing businesses are more transparent about their fees than banks are, especially for those in financial distress.
If you have got anything to sell, buy, or need short-term loans, then a check cashing store is the right place for you to visit. This establishment will solve all the hassles you might be facing in some other places. Reach a check cashing store now!