From time to time, we all get hit with unexpected bills. It’s dreadful to feel that we’re in a financial trap with no way out. Fortunately, there are payday lenders who can offer the instant emergency loan we need to get out of a bad situation.
But before applying for a fast payday loan online, you should know the pros and cons. Keep reading to see whether a payday loan will work for you.
Pro: It’s an Easier Approval Process
A standard lender will only offer you a loan after it’s taken a good hard look at your credit score and spending habits. That’s enough to make many people look elsewhere for money.
In contrast, payday lenders specialize in offering no credit check loans to people with less than impressive credit. So, there’s less chance of you feeling intimidated when applying for one of their loans.
Pro: Receive Faster Approval
The time it takes to receive approval can also differ. For example, a standard loan with a traditional lender such as a bank can take days or even weeks to approve.
Payday lenders generally will let you know within minutes if you qualify for a loan. When money is tight, time is usually a key consideration.
Pro: You Can Apply From the Comfort of Your Home
Payday lenders can do all of their business online while many traditional loan institutions still require you to come into the office to complete a loan application. Some people find the convenience of finalizing a loan online attractive because they may not have their time or means of transportation to drive across town for a loan interview.
Con: High Interest Rates
There’s no way of escaping it. Any payday loan that you receive from any lender will carry a substantially higher interest rate than a comparable loan from a traditional lender.
Payday interest rates are generally higher because the lender is taking a greater risk by lending to those who have struggled in the past with other debts and bills.
Of course, if you need the money quickly, you’re probably willing to take on the interest. But you should have a definite plan to pay off the loan as quickly as possible, preferably on your next payday.
Avoid rolling the debt over. Some lenders will let you extend the loan period if you’re having trouble repaying. However, this extension increases the amount of interest that you will have to pay on the loan.
Con: They’re Not Available Everywhere
Some states don’t allow payday lenders. The laws were put in place to protect financially vulnerable people who could fall into greater financial trouble.
Con: Not All Lenders Accept Social Security Payments
A payday lender wants to make sure that you have some sort of steady income by which you can repay the loan. If you are retired or disabled, your primary source of income could be Social Security (SSI) payments. For some lenders, that’s not a problem, but that’s not true for all lenders.
Check the lender’s website to make sure that SSI benefits are accepted as a primary means of income.
Are Fast Payday Loans Online Right For You?
Now that you know a few of the chief pros and cons associated with quick cash loans have you decided whether fast payday loans online are right for you?
If so, make sure that you use a credible lending network that can direct you to the best online loans available.
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