Advantages and Disadvantages of Payday Loans

When you are in a financial bind, you need money and you need it fast. There are hundreds of online sources in which you can find to borrow a payday loan from. There are advantages and disadvantages to payday loans online. Here are some things you should consider and contemplate on before you make a final decision about payday loans:

Advantages of Payday Loans

Payday loans are extremely convenient for people who need cash in a hurry and who are willing to pay it back in a fair amount of time. When you apply online for these no fax payday loans you can usually be approved in as little as a couple of hours. That is extremely useful when you needed money yesterday! The process of applying for and being approved for these loans is completely hassle free. Payday loans are perfect solutions to paying for those unexpected bills that come along or for car repairs that you weren’t anticipating.

If you are at least 18 years of age and are a US citizen you are eligible to apply for one of these payday loans. It can take up to 72 hours to be approved for one of these loans, but that is still a fairly short period of time when you consider how long it takes to receive a loan through a traditional lender. Even if you have a history of bad credit or bankruptcy, it is possible to receive a loan through an online source. That is something you won’t ever be able to do through regular banks. Once you are approved, the money is direct deposited right into your checking account. It just doesn’t get any more convenient than that.

Disadvantages of Payday Loans

Although payday loans are very convenient, there are some disadvantages to applying for these loans as well. When you choose a lender for your payday loan it is very wise to pay close attention to the agreement. The interest rates on these loans can be extremely high ranging from 10% to 30%. Also if you fail to make your payment on time, these rates can easily double. You usually only have 30 day maximum to pay these loans back. Sometimes you only have 2 weeks or until your next paycheck. People who are in debt are not advised to use these loans as a debt consolidation. That is because you will usually wind up deeper in debt in the long run. There have been some online lenders who have been accused of fraudulent practices. If you plan on using an online lender it is wise to check them out thoroughly before signing any agreement.

Make an Informed Decision

One very important thing to remember is that if you do not have a job and aren’t receiving a regular pay check, you will never be able to borrow from an online payday loan lender. It doesn’t matter if you promise to pay it back on time or not. Having a job is an absolute must! As long as you carefully weigh your options, you should be able to find an online lender to meet your needs.