Pros and Cons Payday Loans
Minimalist Personal Loans
There are many kinds of personal loans but what make people interested on personal loans are the payday loans. Why is it so popular? The reason behind the popularity of payday loan is its ease to get the cash so fast and yet they don’t have to pay monthly but they are forced to pay it every day. Some people may think that it is so sick because you will spend you work every day just for debt. The reality tells different as you really need the money and the best choice is in payday loans. The most important thing you should know when we are talking about payday loan as one of the kinds of personal loans is that short term loan. You cannot pay the installment for years or else but you have to pay it only for months and pay it every day. That might sound crazy, but the system tells so. You are not allowed to pay for years but just for months and the loan is paid daily. To help you to consider whether payday loan is good for you or not, you have to see the pros and cons to ensure that you will get no regret after you take the credit.
The process is fast and that’s the best thing that makes payday loan is favorite for some people. You don’t even need to wait week or month to get your cash sent to your bank account. You don’t need to worry when you really need the cash fast, so you just need to apply and wait in hours for verification and well, just see hours later. Somehow, you don’t need hours and just in minutes, your application will be approved because some of companies have already had automatic system that allows you to get faster process of cash.
It is different from other loan, you don’t need to go the office, you just need to sit down in front of your computer or using smartphone and then you will need to fill the form online and make sure that you input valid information so it will fasten the process of your cash. What you have to make sure before you submit, you have to scan all documents needed before you start the application so the verification will be faster too. You just need internet connection and computer to apply.
Amount is high
In payday loan, the amount of loan is also high. Some companies give amount up to hundred thousand dollars or even more. It depends on how big the company is. The most important to get the amount higher is that you have to ensure that every detail of your identity is original and you are not allowed to make or even submit the fake identity.
The interest rate is high
It is indeed faster and higher, but this loan has high-interest rate. We have known it as the common secret that everyone has known. As items needed are increasing, it has been common issue that payday loan is still high in demand because we all know that human sometimes can be wrong in managing their money and they sometimes need money suddenly for urgent needs. This thing might be a warning. If this thing is okay for you, then you can go ahead because the control is in your hand.
There is additional fee
Some companies apply some additional fee that might make you cancel your plan. The amount of the additional fee can be different from one company to another company or payday loan. To get the real comparison, you can make a research first before you apply the payday loan because when you don’t know the detail of the additional fee, you might find a trouble because additional fee is included also.
Impact credit rating
It has been common thing also that payday loan can impact credit rating or history of your personal view especially on credit. Every person has a credit history but when it is good, you can still go easily with more credit loans because you always pay on time but it does not work on a payday loan. Some banks are not pretty good for those who have history on payday loan.