Pros and Cons of Payday Loans

When considering an online payday loan, you need to weigh the pros and the cons. Payday Loans can be costly and can possibly trap you in a borrowing cycle due to high interest rates (typically about 400% APR or about $20-$25 per $100 borrowed) and short loan pay-off periods. However, this said, when you’re in a pinch they offer quick cash with no need to fax any documentation. It is up to the individual to decide if the cost of the loan is worth the convenience of having cash when it’s needed. Online Cash Advance Payday Loans can be extremely beneficial in emergency situations where your next paycheck will cover the full cost of the loan, including fees. A quick cash advance may be needed to cover unexpected medical expenses or car repairs. In addition, most lenders do not require a full credit check so it’s much easier to obtain a cash advance loan if you have bad credit. Most simply require an open bank account and a job; if you can write a check or provide an account number, you’ll qualify. Some level of employment is needed to ensure repayment. You need to consider your options and determine if an online payday loan is the best course for your financial needs; it is not something that should be entered into on impulse.