Advantages and Disadvantages of Payday Loans
Advantages and Disadvantages of Payday Loans
There are many advantages and disadvantages to payday loans. This article will discuss both of these options.Payday loans can be a great way to get cash in a hurry when you need it. They also require no credit check of any sort, which means that anyone with a job and a checking account can get a loan, even if they have bad credit.Turnaround time for approving a loan is also quick, especially if you fill out an application on line rather than going into a branch office and filling out an application.Also, if you opt for the online approach, the money can also be deposited directly into your checking or savings account.If you go into a branch office of a loan company, you will be given cash or a check to cash at a bank, which means you will have to not only drive to the loan company, but also drive to the bank to cash the check or deposit the money - having it electronically deposited directly into your checking account will also make the funds available quicker.There are also many disadvantages to be considered when thinking about payday loans. Rates on payday loans can range anywhere from 10% - 30%, which is considered very high. If you apply for a payday loan, you need to also be sure you can pay the money back in full come payday.Many payday loan places will let you have a certain number of extensions if needed, where you pay just the amount of whatever the fee is to extend the loan - however this will make the loan more expensive in the long run. You must also have a job with a fixed income, as well as a checking account, to get the payday loan.In summary, payday loans can be a great way to get extra money in a hurry when you need it. But before you decide to apply for a payday loan, make sure you fulfull all of the requirements for the loan, and make sure you'll be able to pay the loan back on your next payday.If you for any reason are not able to fulfill the requirements of the payday loan, you might be better off considering another option, such as seeing if you can borrow the money from a friend or family member, or possibly even,pawn something of value at a pawn shop.