Payday Loans Advantage And Disadvantage

Payday Loans Advantage And Disadvantage



Payday loans: advantage and disadvantage
What is​ payday loan? Payday loan or​ it’s another term cash advance – is​ short term loan until borrower’s next payday .​
Usually it’s a​ loan for the​ subitaneous situations,​ such as: subitaneous disease,​ disaster and other instant cash needs .​
Typical loan’s term is​ about two or​ three weeks,​ but it’s possible to​ restructure you​ loan for a​ next term .​
Usual amount of​ such loan type is​ 100$-1500$ and only some special lenders could give you​ more then 1500$ .​
Another feature of​ payday loan – is​ a​ big rate,​ it’s really big if​ you​ compare it​ with usual loan type .​
This rate is​ about 390 - 900 percent per year! the​ process of​ the​ loan is​ very easy - you​ have to​ do the​ following steps:
- Chouse the​ best lender for your situation.
- Calculate your expected loan payment,​ to​ be confident,​ that you’ll have possibility to​ pay for your loan.
- Investigate terms and agreements of​ online payday loan service .​
It’s very important step,​ because the​ loan conditions various greatly form service to​ service.
- Fill online application form .​
Usually it’s an​ easy form with your personal information .​
In some services you​ have to​ send some personal documents by fax.
- Wait for approve .​
Typically from 15 minutes to​ 1 day (it’s also different form lender to​ lender).
- When approved,​ you’ll receive your cash next business day on​ your saving account.
- When term of​ loan become – pay your loan amount and rate for payday loan use.
So,​ really,​ it’s fast and easy,​ but very expensive way to​ cover your financial needs .​
But as​ any another loan it​ has it’s own particularities: advantage and disadvantage.
Payday loan advantages:
+ Fast way to​ receive extra cash.
+ Easy application form for payday loan.
+ For many lenders your bad credit history is​ not a​ problem.
+ you​ needn’t send you​ personal document by fax for many services.
+ Online application process and approve.
Payday loan disadvantages:
- Big fee rate for payday loan use.
- There is​ some risk to​ fall into debtor's prison.
Thus,​ it’s much better to​ have some cash resource for unpredictable life situations or​ use some other (no payday) loan type,​ but if​ you​ have no cash resource and you​ have bad or​ no credit history – payday loan is​ best help for you​ .​
As you​ see,​ main payday loan disadvantage is​ the​ big application fee .​
Payday loan is​ a​ nice loan type,​ which helps many people in​ difficult situation,​ but it​ is​ a​ nice loan type only for those people,​ which know how properly calculate there future income!




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