Ups and Downs of Payday Loans

Pros and Cons of a Payday Loan

“I’m short of money and still have two days till payday!”
Sounds familiar, right? We all go through rough patches dealing with everyday expenses in a hectic life.
A payday loan may be an enormous help during financial hardships. So instead of pulling out your hair, consider applying for a payday loan with a fast and easy form that only takes a few minutes to complete at Getmoney.com.

Payday loans (also called a payday advance, salary loan, or a cash advance) is a small short term loan based on your next expected paycheck. Despite the name, a payday loan may be granted regardless of whether repayment is linked to the borrower’s paycheck or not.
Usually, a payday loan is expected to be paid off within a few days, but it could be for up to 30 days. Payday loans are generally favored because they provide access to quick cash without the usual hurdles of a traditional personal loan.

To qualify for a payday loan, the borrower must present his or her payroll and sometimes employment records. With the increasing access to the internet, companies like GetMoney.com are getting more and more focused on their online services. The focus is on enabling borrowers to request a loan in just a few minutes on their mobile phones and desktop PCs.

What are the advantages of a payday loan?

1. FAST AND EASY PROCESS

One of the significant advantages of a payday loan is how quick the process is. There is no background check, usually no credit history review and virtually no paperwork. Just complete the online form, and you may be approved in as quick as a few minutes.

2. FAST FUNDING

After submitting the request, you could have your cash within one working day. No need to stand in long lines and wait a week for the approval process.

3. GOOD CREDIT ISN’T REQUIRED

The single most valuable advantage of a payday loan is that a payday loan may be approved regardless of your financial history.

4. NO COLLATERAL REQUIRED

Contrary to the commonly sought after secured loans, a payday loan won’t put your property in danger if you fail to pay it back in time. Lenders generally ask for a post-dated check to secure their investment.

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A payday loan may seem like the perfect remedy for your financial wounds, but it’s just like every other loan, and it has a few disadvantages that you must weigh before making a decision.

– Higher interest rates

Due to the nature of payday loans plus being unsecured and granted regardless of credit history, the lenders will charge a higher interest rate to justify the risks

– May affect credit

If you fail to pay your debt, the lender may sell your payday debt to a third-party debt collector and report you to a collection agency. The negative report will hurt your credit.

– Not a long-term solution

A payday loan is only a short term solution for emergency situations. Please don’t make irrational financial decisions that will land you in a worse position than your current state.

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