Payday Loans

Pros And Cons Of Payday Cash Advances

Within the last ten years, different types of payday cash advances have emerged as a very easy and fast financing solution to those who are going through temporary cash crunch and have some urgent financial needs to meet. These are small amount of loans that are issued for a very short period of time, usually the next payday. Regardless of which day of the current month you borrow it, you will have to repay the same on the coming payday. Though it is true that the payday lending programs come with an array of attractive features, there are also some negative aspects associated with the same that you must be well aware of.

Fast Approval But The Repayment Period Is Very Short

The eligibility criteria to borrow payday cash advances are very simple. You just have to be a US citizen with a good employment record and a checking bank account in your name. Even people with bad credit can easily qualify for these loans because lenders never check the credit score of the applicants. For them, a decent employment history and a checking bank account are the main security. Even the application process is very simple. All you have to do is just to fill out an online application form, which does not take more than two minutes. Most lenders will not require you to submit or fax any documents. That is the reason why these loan programs are often also referred to as faxless payday loans. Even the approval comes within just twenty-four hours. But, it is very important for you to keep in mind that the repayment period on these loans is very short, just a couple of weeks. Therefore, you must have a budget plan for the repayment much in advance. Failing to repay the loan on the set due date will make things very difficult for you.

You Can Easily Borrow Up To $1000 But You Will Have To Repay A Significantly Much Larger Sum Of Money

Most lenders allow you to borrow up to $1000 in payday cash advances and you can get this cash instantly. But, this instant cash comes at a price. It is very important for you to keep in mind that the rate of interest and finance fees that are charged on these loans are extremely high, which means you are required to pay a significantly much larger sum of money on the due date. For example, if you borrow $500 for a 14-day period, you must be mentally and financially prepared to pay back over $200 in terms of interest and finance charges.

Considering all these facts, it is often wise to avoid payday cash advances, but if you have no better alternatives available out there and you have decided to go for it, make sure that you understand the terms and conditions thoroughly.

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One Response to “Pros And Cons Of Payday Cash Advances”

  1. Macc says:

    Very interesting points. Pay day Cash advance are very easy to take, any body can qualify for such Cash Advance but these loans come with a very high rate of interest and it can be taken for a very short period of time. Generally, you have to repay such loans at the next payday. If you have met with an urgent need of money and you have no other option available then you can go for getting pay day loan. The eligibility Criteria of taking such loans is very simple. They just want your name, contact number, employment record and a checking bank account. The lenders will not even check your Credit Score and they will not demand for any documents. These are the reasons of the popularity of such loans but the merits of these loans are actually its demerits. The very little amount you borrow from a lender will become a huge amount. If you skip only a single due date and if you default one or two payments, it becomes totally impossible to get rid of such payday loans. It is sure you understand the terms and conditions thoroughly, you can avoid payday cash advances.

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