Same day cash loans are also popularly known as payday loans. They are even continuously gaining in popularity and widespread all over the world. But are they really famous or they are just as infamous as regular loans from banks which make people suffer financially? In this post, we are going to discuss payday loans advantages and disadvantages.
Advantages Of Payday Cash Loans
1. Helps cover urgent needs and emergency situations because they come in handy in times of financial difficulties.
2. Available in most places whether in local shops or online sources.
3. They are easily applied for and taken out. When you choose to apply from local lenders, you can get the money right in your hand within the same day. If you choose to apply online, you can expect a more convenient and quicker loan application, processing and approval of your loan. Usually you can expect to get the money in an instant or within a couple of hours.
4. Payday lenders ask for minimal requirements. They would not ask you for so many things aside from your bank checking account and to qualify, you only will need to be 18 at least 18 years old, employed and receiving a monthly compensation.
5. No credit check is required. When you have to undergo strict credit check in banks and other loan companies, payday lenders will not care about your credit history so you can be approved of the loan even if you have had the worst credit situation before for as long as you have the capacity to pay today.
1. High interest rates. Payday loans generally come in extremely high interest rates so they are only good to be taken during financial emergencies. They are not ideal to be taken out several times in a year and when taking out large amounts of loans.
2. Short repayment terms. Usually, they are due in 14 days which is approximately two weeks from the day you got the money from them or on your next paycheck, whichever comes first. The loan amount including the interest rate and the fees will be deducted from your account if you allow them, especially if you have applied online or you must fund the check that you have issued them on your due date.
- Payday Lenders Go Hunting (online.wsj.com)