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People Are Denied Payday Loans- Here’s Why!

Payday loans are a means for rescue when one is short on money and cannot apply for a traditional loan for various reasons. When one gets rejected by other lenders such as conventional ones due to not being able to offer collateral or due to having a bad credit rating, they opt for payday loans since these loan lenders are more lenient than the others. However, do payday loan lenders offer cash advances without any terms and conditions? Let’s first have a look at scenarios in which they do offer loans:

Bad credit:

A huge number of Americans possess credit scores that are average or below that. That means that they hold credit ratings below 600. This can make it difficult for them to get a loan from a traditional or a conventional lender. Traditional lenders often reject borrowers whose credit scores are below 600 since they depend on the previous financial transactions and repayment histories of borrowers in order to come to a conclusion about whether they qualify for a loan with them or not.

However, payday loan lenders do not depend on one’s credit rating in order to offer a loan to him/her. That’s because they do not believe in one’s past financial transactions and repayments in order to give them a loan. They instead ask for the individual to have a stable monthly income which is the main factor that determines whether or not one can receive a loan from them.

Collateral:

If a bad credit holder seeks a loan from a traditional lender, it is most likely that the lender will turn own the request. However, average credit rating holders can get a chance to receive a loan from these lenders provided they have something to offer as collateral. That means, they have to put something as valuable as a car or their house at stake in order to get a loan from them. Not everybody has a vehicle of their own or a house that they own to offer to a lender as security, which makes it difficult for them to get a loan. However, payday loan lenders offer unsecured cash advances to their borrowers. This makes life easy for those who have bad credit but nothing to offer as security or don’t want to risk something by putting it up as collateral. Again, as long as the borrower has a stable income, it shouldn’t be a problem for the lender to offer him/her a loan.

Now, let’s look at situations wherein payday loan lenders deny loans:

No stable income:

From the very beginning of this article, we have been enforcing the idea of one having a stable income in order to receive a loan from a payday loan lender. That’s because that’s the main requirement in order to receive a loan from them. If one doesn’t have a stable income, he/she shall not qualify as a trusted borrower with a payday loan lender. Payday loan lenders concentrate on the current financial status of the borrower in order to lend a loan. So, if there is no monthly income which is stable, there is no chance of one receiving a loan from them.

Bank account:

This is majorly directed towards online loan lenders. Online payday loan lenders require their borrowers to have a checking account through which they can both deposit as well as withdraw cash. The whole idea of applying for an online loan is to avoid the hassle of paperwork and more that comes with applying with a store-based lender. Online loan lenders also like to avoid the hassle of not being repaid on time, which is why they withdraw cash from your account on the due date. Of course, they do inform their borrowers before doing so, but it is a much more convenient option even for the borrower who gets to avoid keeping a track of the due date as well as travelling to a store just to pay back a loan. In order to have a smooth lending and borrowing experience with a payday loan lender who’s based online, it is important for you to have a valid checking account.

Crypto mining is one of the most lucrative and preferred ways to own cryptocurrencies. It is not only cheaper but also more future-proof of any fluctuations in the market. However, it wasn’t always this productive, as earlier crypto mining was done on GPUs and CPUs. But due to technological advancement and development, it is no longer viable to mine cryptocurrencies on computers.

Today, highly advanced ASIC miners are used to mine cryptocurrency as they are super-fast and can handle complicated computations easily. While these ASIC miners are robust and capable, there are still few things that affect their profitability.

Problems faced by ASIC miners and how to solve them?
ASIC miners are the most advanced tool available in the market for crypto mining. However, there are still a few wrinkles that need to be ironed out to make it even more rewarding.

High Energy Costs
A mining farm has hundreds of ASIC miners working together to mine cryptocurrencies. These machines require a significant amount of power to work efficiently and generate yields. This high power consumption results in higher electricity bills that cut down the profits. Also, most of the mining farms rely on traditional sources of energy that harm the environment.

This problem can be solved in two ways. The first is to use less-power-intensive protocols that tokens such as Ethereum and Cardano are using. These protocols cut down the power consumption but are costly and centralized. The second solution is to rely on renewable sources of energy such as solar energy and hydroelectric energy. The latter solution is more effective and environmentally friendly.

CryptoJacking
No matter how secure blockchain technology is, crypto mining is still susceptible to hacks. Hackers have several advanced tools at their disposal that can hack through protocols and affect the price of cryptocurrencies.

To tackle this problem, blockchain networks use the Proof of Stake protocol combined with other protocols to add additional protective layers. If one of the protocols is affected, the other remains unaffected and gives the network a fighting chance.

Centralization
ASIC miners are usually specifically designed to mine a particular cryptocurrency. These ASIC miners are so effective that any other machines cannot produce the same results. This feature gives ASIC miner manufacturers a monopoly over the market as they can control the price and supply of these machines, which results in centralization.

There are potentially two solutions to this problem. Firstly, the ASIC miner manufacturing process can be decentralized so that no single manufacturer controls the flow. Secondly, specific protocols can be used that eliminate the need for specifically designed ASIC miners.

Hefty Costs
ASIC miners can cost from $20 to $5000. However, to generate profits and compete in the market, miners have to rely on advanced ASIC miners that can cost a fortune. Also, the electricity and maintenance costs can cut down the yields making it harder to recover the initial investment, let alone make a profit.

The only reliable solution to this problem is to use marketplaces that offer smart contracts at affordable rates. Interested buyers can get ASIC miners at affordable prices that include maintenance and electricity costs.

Maintenance
ASIC miners require constant maintenance due to high power consumption and heat generation. Maintaining these machines individually is a costly and lengthy process. Instead, using a marketplace such as Zionodes that takes care of everything will make your life easier.