Quick payday loans are short term loans for consumers who need immediate cash If you’re not informed about this kind of financing, this post presents both good and bad side of payday lending The Pros of Payday Loans It can be difficult to obtain a regular loan and times during emergencies, borrowing cash from a payday lender could possibly be most viable option. An interested borrower can fill out and submit the application online. Upon approval, the lender will send the funds through electronic transfer so the borrower can withdraw the cash on the same day.The Cons of Payday Loans Despite the convenience that payday loan offers, consumers are warned against acquiring this form of help in a hurry. Before acquiring cash advance from a payday lending company, consider the possible consequences.
The primary disadvantage with cash advance payday loans is the steep interest rate Payday loan lenders can charge 200% up to 300% interest rate Some lenders may even charge as much as 500% interest The rate will depend on the lender and the State laws on lending.There is a great risk of being stuck in bad debt when a payday loan is not paid in full and on time because of the steep rate of interest. If you fail to pay back the loan by your next pay check, you will incur the additional interest charge which can range anywhere from 100% to 300% of the loan amount.