Advantages and Disadvantages of Payday Loans
If you have missed or late payments within the last 7 years, these will have been recorded by credit reporting agencies. This means that, if you need to borrow money, your application is likely to be declined. If you have been rejected elsewhere, you should consider applying for cheap payday loans.
Unlike applying for a bank loan, you won’t need to pass a credit check, This means that your application is guaranteed to be accepted, provided that you’re able to comply with some very basic eligibility criteria. You must be an American citizen, at least 18 and be in full-time employment. You’re also likely to find that payday loan lenders want you to have a checking account and 2 forms of I.D. The bank account must be in your name, not that of a third party.
If your application is approved, your funds will be wired to your bank account. Regardless of the time you apply, the money will reach your account within no more than one working day. If you apply in the morning, you may even receive it before the close of business.
The main negative associated with taking out a cash advance is that the rate of interest is very high. Critics even consider the interest rate to be usury as you’re asked to pay up to 25% per month. If you’re unable to repay the money you’ve borrowed, interest and charges can quickly accrue. It’s all too easy to end up with a substantial amount of payday loan debt and become trapped in a cycle of dependency.
