online payday loans

Advantages and Disadvantages of Payday Loans

internet payday loans

When most people think of a payday loan, they often think of a loan that is riddled with high interest rates that's going to kill them financially. While this can be the case for some lenders, you have to understand that there's an advantage and disadvantage to everything in life.

To break things down, let's explore the pros and cons of payday loans.

First, let's dissect the payday loans disadvantages:

Expensive

Most of the time, your payday loans are going to have interest rates that can reach into the triple figures. As you can imagine, a $100 loan could quickly turn into more than $1,000 in its lifetime.

Being Dishonest

Unfortunately, there are a lot of lenders out there that may take advantage of your financial situation. This is why it's so important that you should research the company before applying for a loan. If your gut is giving you a bad vibe, then it may be best to apply with someone else.

Limited

One of the biggest payday loans disadvantages are the limitations they set. Most companies only allow applicants to apply for loans up to $1,000. So if you need a loan that is more than $1,000, you may have a hard time finding one, especially if you have poor credit.

Now, let's move onto the advantages of payday loans:

Convenient

If your car were to break down or you needed hundred dollars to keep your heat on, one of the only ways you could get money quickly is by applying for a payday loans. Whether you apply for payday loans online or in person, most lenders are able to get you a loan within an hour.

Poor Credit

One of the biggest advantages of payday loans are that they cater to those with poor credit. Since most of your banks frown upon those with a bad credit score, just about anyone with a valid identification and steady income can apply with most payday loan lenders.

Before applying for payday loans online or in person, just make sure that you know what you're getting yourself into. Be sure to read the fine print, understand the interest and the terms. Now that you know the pros and cons, you can hopefully apply for a loan with confidence.