Payday Loans – Its Pros And Cons
Payday loans are also famously known as short term loans. These are basically cash advances that need to be repaid along with a certain amount of interest. It takes just a few minutes to apply and once you are approved for loan, you can enjoy its benefits in a couple of hours. Payday loans can be borrowed for instant use and the borrower is bound to pay it back on the next pay date. If you are looking for instant cash, then apply for payday loan at your nearest bank or lending institute. You can also avail this facility through online website. There are thousands of lenders found online.
The process of applying for payday loan is easier compared to the conventional long term loans. Other types of loan require you to send heaps of paper work and documents. The approval process can take as long as 1 week or more. Moreover, you can not be sure of if your loan will get approved or not. Fax and emails have made the entire payday loan application process simple and quick. By just sitting at home, you can apply for payday loan. All you need is to fill n application form and provide details regarding your home address, bank account information and your job history.
There are a number of features that make payday loans unique and convenient. First of all, through payday loans, you can meet your instant cash needs. Once you have been approved, the cash is transferred to your bank account in a matter of few hours. There is no other type of loan that you can acquire in such a short period of time. Within a notice of 24 hours, the cash will be in your hands. In other cases, you will have to go through the hassle of providing your financial history to the lender. This would take much of your time.
Payday loans are for everyone. People with good credit history as well as bad credit history can acquire this type of loan. If you have a poor credit rating and lenders have been turning you down then you must apply for payday loans. Payday lenders will not check your credit history instead they will only need details of your employment. These details are enough to make you eligible for payday loans.
However, there are some disadvantages associated with payday loans. First of all you can not borrow much money as it is a short term loan. The amount of payday loan can range from $300 to $1000. However this amount varies from state to state. These loans come with high interest charges. This is the only drawback that makes payday loans an unattractive way of obtaining cash. The interest rate usually starts from 390% and can reach as high as 790%.
These loans can add up more to your problems if you do not pay it back on time. You are supposed to repay the loan within 15 days. Some companies allow you to pay it back in 30 days. However, if you are unable to pay before the deadline then you will be imposed high penalties and charges. If you think you can not repay the loan within a month then drop the idea of borrowing payday loans. It will cost you a fortune.
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