Thanks to high-speed Internet and quick online services, getting a loan is easier than it used to be, say, 20 years earlier˳ As with any service, payday loans are associated with their own set of plus and minus points˳ The trick lies in being able to discern exactly when such a loan would be useful˳
Before explaining when a payday loan would be useful to you, it’s important to understand when NOT to apply for one˳ Here are some situations where such instant loans might not be the best option:
- You have already availed of a loan which you are in the process of repaying˳ Avoid applying for a second loan to pay off the first; this is usually the beginning of a vicious cycle of debt
- You require a loan for impulse spending or spending on luxury or non-essential items; if you want to buy that expensive perfume, hold on until you have enough money to do so˳ The same goes for holidays, gifts and clothes shopping
- Your income is low˳ Keep in mind that fast loans are usually expensive˳ The interest rates are exorbitant˳ If you earn a low income, these might not be for you˳ Ask for help from your bank or financial advisor instead
There are certain advantages of payday loans:
- They are fast, easy and hassle-free to procure: If a loved one is in hospital and you need airfare urgently, payday loans are a good option˳ The approval is often within the hour and you can get the cash almost instantaneously
- They are an excellent option if you need urgent money on a weekend or public holiday˳ Since the Internet operates 24 x 7, payday loans are always accessible including nights and over weekends
- If you have a bad credit history, there are certain lending companies that will be happy to offer you credit˳ It’s important to bear in mind that loans given despite bad credit might (and often do) cost more˳ The interest rates could be higher˳ But the option is available in the event of a dire emergency
- The application process is simple˳ The forms usually ask for your name, contact, age (you have to above 18 years of age), employment details, salary earned etc˳ You might have to scan your ID, bank account details and employment certificate
- You can apply for a payday loan from the comfort and privacy of your home˳ There is no need to run back and forth to banks and other lending institutions˳
In order to avail of payday loans, you might want to keep the following precautions in mind:
- Ensure that you are aware of the state laws governing interest rates˳ Each US state has different laws when it comes to capping high interest rates˳ If you find a lender asking for too much, you can report them to the consumer bureaus
- Apply for an instant loan only if you are seriously stressed out for cash˳ Remember, payday loans do not come free˳ Sit down and analyze if the situation really warrants an application for a payday loan
- Before applying, calculate and see if you can handle the repayment schedule˳ If you skip repayment deadlines, you might have to pay double or even triple the interest rate˳ The company will then offer to rollover your loan but it won’t disappear˳ You might end up paying interest rates of 400% per annum˳
- Compare and check if your credit card company can help you out with a loan instead of a payday lender
Payday loans fit the bill only if:
– The emergency is urgent and pressing
– You can repay the principal and the interest amounts without getting squeezed into a corner
The trick is to pay off your loan and wipe it off your slate for good˳ Avoid rolling over the loan or delaying repayments˳
Source by https://ezinearticles˳com/?Need-Quick,-Hassle-Free-Cash?-Top-5-Advantages-of-Payday-Loans&id=8450017
