The Pros and Cons of Payday Loans

It is fast. It is simple. It is convenient. Payday loans have become popular loan alternatives over the years due to the many benefits that you get when taking one out. Payday loans are also referred to as short-term loans which you can avail of when faced with financial distress or emergency. Accidents and sickness are just two of the most common problems that you will be dealing with from time to time. Even if you have a steady income, there is no assurance that the money that you earn can keep up with hospital bills and all. Luckily, there are payday loans which you can check out at for your convenience.

Payday Loan Pros

Payday Loan Pros

So long as you use it effectively and efficiently, payday load are one of the most viable ways to provide a solution to your financial problems. Even if you have a bad credit, approval will not be based on credit scores so you can be assured that you can avail of the money. Generally, the application process will only take you about 30 minutes or so with simple approval processing. Approval is also typically fast so you can be sure that you get the money that you need in no time. Payday loans also boast of convenience as they have flexible working hours unlike banks and other lending institutions.

Payday Loan Cons

One of the most unpleasant drawback of payday loans is its high interest rates if you fail to meet the repayment terms. A traditional loan will only operate on installment plans wherein you are able to repay a certain percentage of the loan every month while its interest is accrued based on the annual percentage rate. The APR for credit cards is usually below 20% while a payday loan may have an average of as high as 300% if you fail to repay within the agreed terms since interest will accrue every month.

No matter how careful we are with our spending, there will always come a time when money becomes scarce and we need to seek financial assistance. Payday loans can offer you the solution to your impending and immediate financial problem so you don’t have to worry anymore. It’s fast and it’s convenient. Exactly what you’re looking for right now. Make sure that you have a stable income first so you can get the best out of this type of loan without paying additional interest.