Payday loans can be the best one in a situation when the person does not have any other option except payday loans. But one must not look for payday loans as a solution for long term as it comes with drawbacks. In case of emergency or when pay check is not available, then this can be an option one can consider.
Quick and easy
Pay loans comes with many benefits; it provides all the benefits which any other financial providers do. Its quickness is the first benefit and one can easily access the funds. When a person applies at the payday loan personally at the local office, the person can get the cash in his hand in less than thirty minutes. The application time is also included within it. When a person applies for payday loans online, they get the cash deposited into their account within one business day. These payday loans are really easy to access and if a person is above 18years, and has an ID proof along with a source of income as well as saving account in his name, he can easily get the payday loan. The person need not submit a credit check for receiving the payday loans. This is the reason payday loans are really attractive and this is beneficial for those who have bad credit.
High interest rates is its main disadvantage
Though these payday loans have advantages, there are also few outs which must be considered while borrowing the payday loans. First thing is that it has high rates of interest. These payday loans are generally to be paid back within fifteen to thirty days. They have very high interest rates. The loans can be offered by and lenders and they can charge any rate of interest which lasts from hundred to five hundred percent. This is the reason these loans are really costly and they are for short term. The other this about these payday loans is that they are never ending which a borrower can see in. Taking loan is easy as they think they can pay it back quickly. But paying the loan along with the interest as well as the fees becomes tough while repaying it. So the person may take any other loan for clearing the first one. Before a person realizes this, they end up paying their complete pay check. These payday loans as good to go in case of short term when the person needs quick financial assistance. No one can predict emergencies and other necessities. It’s the person’s responsibility to repay the payday loan. They must use this as a last option only when they do not find any other way.