Fast Payday Loans are short-term financial solutions to problems that people encounter every day. These problems are usually urgent and they require cash in order to fix them. Examples include an overdue bill or an emergency automobile repair. Although payday loans have been blamed for taking advantage of people during their time of need, they are actually quite useful when used responsibly. Fast payday loans are not intended for serious financial problems or long-term financial issues that would benefit from credit counseling.
What Are the Advantages of Fast Payday Loans?
One advantage of getting fast payday loans when your faced with emergency financial situations is that they are quick and convenient. You can obtain a payday loan online now, which means you don’t even have to leave your house! More than that, most payday lenders understand that their customers don’t have the luxury of waiting around for the ridiculous procedural processes that traditional, long-term loan providers impose. In most cases, if you apply for a payday loan before the end of the day and your loan is approved, you can expect the money to be in your account the next morning!
Another advantage to fast payday loans is that they do not pull your credit score like traditional creditors do. The lenders don’t care about what’s on your credit report from Experian, Equifax, or TransUnion! Tons of people with no credit – and even bad credit – will qualify for fast payday loans each and every day because the credit score is simply not a factor. Now, in the interest of full disclosure, lenders do care about delinquencies that are payday loan related. If you have too many payday loans out at a time or you have payday loans that are unpaid and in default, your application will most likely be denied.
Yet another advantage to fast payday loans is that they are easy to qualify for. You simply have to be a U.S. citizen, of legal age (i.e. 18 years or older), have a reliable source of income, and payroll direct deposit. Since the fast payday loan contracts are legally binding agreements, being a legal-aged adult American citizen is simply required as a legal formality. A reliable source of income means you must be actively employed and not in a “temporary” or “probationary” status. Some lenders will even approve those who receive pension or retirement benefits. Finally, payroll direct deposit is required for the ease of processing your payday loan repayment. Since your loan money will be transferred to your checking account as an electronic credit, the repayment will be taken out of your account on the due date the exact same way – electronically. Therefore, if you have direct deposit your paycheck will hit your bank account and then your payday loan repayment will hit the same day – ensuring that they money is there and the loan payment is made on-time.
What Are The Disadvantages to Fast Payday Loans?
The primary disadvantage to fast payday loans is that they may be too easy and convenient! Because they are fairly easy to qualify for and the processing time is quick, some people find them tempting and easy to take advantage of. If you got $300 that quick and easy, why not apply for another one so you can have $600? That’s the wrong way of thinking and it can get you into trouble, if you’re not careful. Very few people can manage more than 2-3 payday loans at a time because the loans must be paid back on your next pay date. Having several payday loan due on your pay date will either leave you with little to no money after repayment or you risk coming up short and unable to pay off one or more of the loans. Taking out several payday loans at a time is very risky and you may find that you’re in way over your head!
Another potential disadvantage to fast payday loans is a high annual percentage rate (APR). If you borrow $200 at a fee rate of $17.50 per $100 borrowed ($35 total), then the APR comes out to 456.24%. Yes, that is a high APR and would be cause for concern if you were planning on having your payday loan out for a year or more. However, it is important to remember that payday loans are short-term loans that are intended to be repaid on your next pay date. They are not intended to be long-term loans that are kept out for a year or more, so in most cases, the APR calculation isn’t the best measure because it doesn’t truly apply.
Are You Looking for a Provider of Fast Payday Loans?
Payday Loan Today is an honest, reliable lender that offers payday loans online. We understand that you might need a little help once and awhile and we’d like to be the one who helps you get through. We are dedicated to providing you with the quick cash you need and the service that you deserve!
