Do you need fast and hassle-free cash? Top 5 Advantages of Payday Loans

Thanks to high-speed Internet and fast online services, getting a loan is easier than it used to be, say, 20 years ago. As with any service, payday loans are associated with their own set of positives and negatives. The trick is being able to discern exactly when such a loan would come in handy.

Before explaining when a payday loan would be useful to you, it’s important to understand when NOT to apply for one. Here are some situations where such instant loans might not be the best option:

• You have already made use of a loan that is in the process of repayment. Avoid taking out a second loan to pay off the first; this is often the start of a vicious cycle of debt
• Requires a loan for impulse spending or spending on luxury or non-essential items; if you want to buy that expensive perfume, wait until you have enough money to do so. The same goes for vacations, gifts, and clothing purchases.
• Your income is low. Keep in mind that fast loans are usually expensive. The interest rates are exorbitant. If you have a low income, these may not be for you. Ask your bank or financial advisor for help instead

There are certain advantages of payday loans:

1. They are fast, easy and simple to obtain: if a loved one is in the hospital and urgently needs a plane ticket, payday loans are a good option. Approval is often within an hour and you can get the cash almost instantly
2. They are an excellent option if you need urgent money on a weekend or a holiday. Since the internet works 24/7, payday loans are always accessible, including nights and weekends.
3. If you have a bad credit history, there are certain loan companies that will be happy to offer you credit. It’s important to note that loans made despite bad credit can (and often do) cost more. Interest rates could be higher. But the option is available in case of an extreme emergency.
4. The application process is simple. The forms usually ask for your name, contact, age (you have to be over 18), employment details, wages earned, etc. You may need to scan your ID, bank account details and employment certificate
5. You can apply for a payday loan from the comfort and privacy of your home. There is no need to run back and forth to banks and other lending institutions.

To avail payday loans, you may want to keep the following precautions in mind:

• Make sure you know the state laws that govern interest rates. Each US state has different laws when it comes to limiting high interest rates. If you find a lender asking too much, you can report it to consumer bureaus.
• Apply for an instant loan only if you are seriously stressed about cash. Remember, payday loans are not free. Sit down and analyze if the situation really warrants a personal loan application
• Before you apply, calculate and see if you can handle the payment schedule. If you miss payment terms, you may have to pay double or even triple the interest rate. The company will then offer to renew your loan, but it won’t go away. You could end up paying interest rates of 400% per year.
• Shop around and see if your credit card company can help you with a loan instead of a payday lender

Payday loans fit the bill only if:

– The emergency is urgent and pressing

– You can pay principal and interest amounts without being cornered

The trick is to pay off your loan and wipe it off your slate forever. Avoid refinancing the loan or delaying payments.