Payday Loans – the Pros and Cons

Payday loan is just a cash advance that is taken on your upcoming paycheck. It is a loan provided by SPINTAX. Each individual who take payday loan has their own reason why they take such loan, but usually they take it in order to cover any emergency expenses.

Payday loan is a beneficial and advantageous loan, which also brings risks and some disadvantages. Let us list down these pros and cons about payday loans.

Pros

• Easy to apply: Application is basically within just minutes – whether it is online or local loans. There’s no time consuming paperwork or credit check. • Approval is easy: Because there’s no paperwork necessary or credit check, approval is almost immediately. Furthermore, there’s no need for collateral needed to acquire the money. • Fast cash delivery: In payday loans, money is handed within 24 hours. Sometimes, if approved, money is sent within one hour.

Cons

• High interest rates: Payday loans have high interest rates. Average interest rate is 400% but sometimes there are others who charge 500% interest. • Expensive penalties and fees: failing to pay the loan on time will lead to expensive penalties and fees. Failing to pay the loan on the first try would lead to compound interest. • Shady collection methods: Many payday loan companies have shady collection practices like threatening arrests, harassing calls at the work place or at home. Sometimes, they would employ debt collectors who will track down lenders and sometimes use force to get the payment.

The pros and the cons listed here would help you understand more about payday loans and at the same time help in making a decision in looking for payday loan lender.

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