subject: Instant Payday Loans: Pros And Cons [print this page] Instant Payday Loans: Pros And Cons Instant Payday Loans: Pros And Cons
Copyright (c) 2011 Andrew SchererIt's just a plain fact that today more people are in need of a line of credit than they were just five, or ten years earlier. Even so, one more fact is that credit today is so much harder to get because banks aren't lending like they used to. Not only do you need top notch credit but they also want to see some collateral. So it really can seem at times that only folks who don't need a loan can get one.So it should come as a no surprise that cash advance online venues are doing a booming business as more people than ever are turning to them as an alternative to conventional loan sources. They're easy to secure, you get the cash often within 24 hours, and you don't even need good credit. So then just what are the downsides?The first thing you need to understand, is that even though it's is done online and you don't need a credit approval, these sites are none the less lending institutions. They're in it for a profit. So yes the loans do come at a cost and they also can have some pretty stiff terms too, so make sure that you do your homework on them before you take one out.The first negative aspect that you should consider in instant payday loans is that while they are convenient and easy to secure they can be costly. Dollar per dollar more costly than a bank or credit union. For example expect to have a higher interest rate than you may have been used to in the past, and there also will be some type of loan fee or up front charge.The second downside, is that instant payday loans tend to come with some pretty severe penalties if you're late, or completely default on the loan. They stack up quickly. What this means is that if you take out a loan of, say $1,000 and are late on a few payments, you can easily end up owing substantially more than that original $1,000.Then the 3rd negative aspect, is one that most people really don't think about until it's too late. That is that they are fast, and easy. What this means, is that if you've had problems meeting your credit obligations in the past, an easy loan of this type can be just one more opportunity for you to screw things up on your credit report even worse.
