They are a cheap alternative to banks and other high rate lending companies. And what's best is that your loan can be approved in just an hour or so once you've met their requirements. So are these types of loans really that convenient? What are the pros and cons?
The Pros
- Loans are instant
If you want to loan, bring your requirements, a collateral, usually a post-dated check (depends on the loan company) then apply for one. Once approved, you'll get your loan in less than an hour, no more waiting for calls.
- They are like cash advances
If you have too many cash advances from your company then it's not advisable for another cash advance. If you really need the money, then most likely it will be your only hope.
- Just like borrowing from someone you know
The minimum amount to loan is $50 and the maximum is at $1,500 so it's like borrowing a money from someone you know. The loan percentage minimum is only 10%, pay it on time and it's just like owing someone a money only that you added some bonus. Compared to banks, the minimum is sometimes at $1,000.
- Anyone can loan
Some banks and other financial institutions are picky when it comes to loans. They only pick on who they trust. So the possibility of an ordinary employee to get a loan from these types are low. They are made specially for ordinary employees that earns at a minimum rate.
The Cons
- Extending your pay will multiply the interest
If you are unable to pay on time, you can ask for an extension, but be warned of the multiplied interest. For example, if you want an extension then the minimum interest, that is usually 10% will go up to 20% and if you aren't able to pay and asks for another extensions, your interest rate will now become 30%. Leaving you in heavy debts.
- The lenders are aggressive
It's normal for lenders to be aggressive so if you have to pay on that time you really have to pay. Be warned of bounced checks as these too can make these lenders very aggressive and can even leave you to a criminal offense that are sometimes made up by these lenders in order for you to be prosecuted. So please pay your loan on time.
- Regional limits are ignored
There are lenders that ignores the limits of a loan for a specific region. Please be weary of that.
- The higher the loan, the higher the interest
Minimum interest for a loan is 10% but it's only for the minimum amount of loan. If you go higher than a minimum then the interest will be multiplied.
Payday loans are easy to get but please remember to take responsibility of your loan. Take a loan only when you need one. If it's unnecessary, then it's advisable if you do not make a loan at all. And remember to pay your loans on time or face the consequences.
0 comments:
Post a Comment