Thanks to the current economic meltdown more and more people are thinking of taking up loans so that they can be able to lead comfortable lives. The biggest challenge that these people face is making a decision on the kind of loan that they need to take. To help you make a decision on whether to take payday loans or not, below are some advantages and disadvantages of these type of loans.
Truth be told, the interest charged on payday loans is quite high. It is actually higher than any other interest rate charged on personal loans, whether they are secured or not. The interest rate charged on the payday loans happens to be the biggest downfall of this kind of loans. Making matters worse is that there is no place that you can go where you will find the interest charged for these loans is low.
Time for approval
The loans are usually approved quite fast. This happens to be the biggest advantage of pay day loans. You will be surprised to learn that you can have your loan approved within twenty four hours from the time of application. Thanks to this feature, these loans happen to be the best loans to go for if you have an emergency and you do not have ready cash with you.
The approval ratio of payday loans is quite high compared to any other kind of loans which makes it another advantage of this type of loan. Even people with a history of bad credit do have their loans approved as long as they meet the requirements that have been listed for the pay day loans. To add beauty to that is the fact that even people who are bankrupt do get their loan applications approved. This feature is particularly helpful to those who have a bad history with loans and just want to start afresh.
Unlike other type of loans, pay day loans do not have a long list of requirements. This is actually contrary to the belief of many that payday loans do not have any requirements. All you need to have so as to qualify for a payday loan is a steady job and a bank account. You also need to have worked for two years with the same employer so as to show some stability. If you do not possess any of the above then you will automatically not qualify for a loan.
Payday loans have very minimal to almost no paperwork especially if you apply for the loans online. If you apply for the loan online all you got to do is fill out some forms online and you are good to go. However, you should know that some lenders do not accept online applications; thus you will have to fill very few forms and sign them.
With the above in mind you will definitely be able to make up your mind about whether to take up payday loans or not.