Advantages and Disadvantages of Payday Loan

Any kind of financial bind may put you in trouble and the need for fast money may be a requirement. There are hundreds and thousands of online companies that provide payday loans to people in need of money. However, there are advantages as well as disadvantages of payday loans which one should know before applying for such loans. Some of the things that you must know before contemplating payday loans are:

Advantages:

Payday loans are of great help for all those who are looking for fast cash and at the same time are willing to pay back the same within stipulated time period. Applying for payday online sometime allows you to get the approval and sanction of the loans within couple of hours. This is a great help when you want money immediately. These companies provide you a hassle free method of applying as well as approval for the loan. This can be one of your most preferred ways of paying off any unexpected bill that may come in the middle of the month when you are out of cash.

To procure this type of loan you will require to fulfill some of the eligibility criteria like you should be 18 years and a citizen of United States of America. The approval of such loans may require 72 hours of time but it is still less time when compared to the time taken when you apply for traditional loan. The best thing about payday loan is that you can get it with a bad credit score as well which is not possible through any bank. To make the process all the more convenient the amount of money approved for the loan gets directly credited to your account. So, in need of emergency cash you can always opt for payday loans.

Disadvantages:

Though payday loans are of great use and has many advantages, it also has its own disadvantages. When applying for payday loans, special attention should be given to the terms and conditions put forward by the company. The interest rates on these loans are very high which can range from 10% to 30% as it is given for a very short period of time. If by any chance you fail to pay back the loan money on time, the borrowed money can even become double. The maximum period in which you can pay back the taken loan is 30 days.