Advantages and Disadvantages Payday Loans

Advantages of Payday Loans

Cash In Less Than 24 Hours

  • Payday companies will provide customers with as much as $1000 in less than 24 hours.

Poor Credit Accepted

  • Those who have bad credit history are in the position to get a loan.

Easy Requirements

  • In order qualify for a cash advance,  you must meet three basic requirement: be 18+, have income and bank account.
  • No matter what you need the cash for, whether it is a sudden medical bill or some unexpected event, you can get it with no questions asked.

Simple Form

  • You can request a payday loan by filing a simple form with no documents involved Payday  lenders require very few basic personal details from you, such as your name, home address, phone number, etc, which are provided on the form. It takes only a few minutes to complete the form and submit it to our network.

Fast Approval

  • It does not take too long for your loan request to be processed and approved. As a matter of fact, it only takes a few minutes up to a hour o hear from the lender.

Money Same Day Or Next Business Day

  • The cash is transferred directly to the bank account specified on the form the same day or the next business day.

Disadvantages of Payday Loans

Small Amounts

  • The amount that you can borrow is up to $1,000. If you need more money that a $1,000 a payday loan is not for you.

Tight Repayment Deadlines

  • It is important to repay the loan at the contracted date otherwise additional fees will be applied, which will make the loan much more expensive. Defaulting on the loan will adversely affect the credit score.
  • The repayment is usually in two weeks because these types of short term loans use the borrower’s paychecks as the payment. If you wish to roll over your loan, you will have to pay additional charges.

Cycle of Debt

  • The biggest disadvantage might be the fact that payday loans are too easy available. Borrowers are often very tempted to get them. As a result, they may fall into the spiral of debt where fees start to accumulate very quickly.