Only consider a payday loan application when you need quick cash and you find no other source of funds. But you must be able to make the repayments required on time because missing one payment from a cash advance is where the trouble starts.
If you miss payments four or five times, then you may end up paying interest equal to the amount which you borrowed in the first place. So, you need to check the urgency of your financial needs before you find yourself having to file for bankruptcy because of lack of financial control.
Payday Loan Application – Pros
There are a few reasons why a payday loan or a cash advance may be a good idea. One advantage of a cash advance is the quickness that the money will arrive to you. It usually takes less than a week for you to receive the money. Payday loan companies are all about speed; they want you to receive your money quickly; and they want to receive their repayments quickly
The amount of money you will receive though a cash advance loan is usually small, but some companies will give you more depending on their policies. Most will offer around $100 for your first loan. And as you increase your credit with them, they will offer larger increments up to around $1000 or $1500 at a time.
Total privacy is another advantage of borrowing money from a cash advance company. The transactions will be totally secure and safe because your financial information will remain secure throughout the entire application and repayment processes. No employee or scam-artist will be able to steal your identity or financial information during this process.
Payday Loan Application – Cons
There are many reasons why you shouldn’t apply for a payday loan, one being the repayment requirements set by the cash advance company. If you miss even one payment, the repayment plan will get even harsher. You can end up paying interest rates of up to 30%.
Some people have ended up in huge debt because of the repayment plans that the company set up for them. They simply couldn’t keep up with the repayments and ended up in a spiral of debt with no way out. Companies that don’t carry out a credit check before granting someone cash advance loan usually set up unfair repayment plans.
So, if you can wait until payday for the cash that you obviously seek, you don’t want to get involved in a payday loan application process because the cash advance loan may lead you into any unnecessary trouble.