Online Payday Loans are small, short-term loans meant to help with funds between paychecks. They are sometimes called cash advances. Payday loans are commonly used when payday isn't soon enough or when sudden expenses need taken care of before the next pay date arrives.
Get Money in Just 3 Step
The main benefit of payday loans is that they are quick and easy to get. In just 3 steps you can get your funds and be on your way.
1. Complete a Short Application
2. Get an Almost Instant Decision
3. Get Funds
What are the Benefits of Payday Loans?
There are a lot of reasons payday loans are popular, despite being controversial. Here are some of the reasons why people use payday loans. . .
Fast Process for Fast Funds
Payday loan lenders often have very quick and easy loan applications. Usually, the application takes a few minutes and can often be done online from the comfort of your home or even on your phone.
Not only is the application process quick, but you can also get approved and receive your funds quickly too. You can sometimes get funds deposited into your account the same day because payday loans are usually for smaller amounts.
Don't Miss a Payment
When payday doesn't come soon enough it can be hard to make other important payments on time, like utilities or rent. When not paid on time, these monthly payments carry some heavy consequences. If you don't pay rent you can get evicted. If you don't pay utilities you can get your water, heat, or electricity shut off. Not only will you have to deal with important things being shut off, but you might have to pay as much as $325.50 in reconnection and service fees to get them turned back on.
Reconnection fees and eviction notices aren't the only pains that come with missed payments. There are also overdraft fees that can cost you up to $30 per transaction. Overdraft fees happen when you go negative in your bank account or a check you wrote bounces.
When you have to weigh between missed payment fees and the added interest of payday loans, sometimes the payday loan wins.
Quick Loan Terms
Payday loans usually have a loan term of 2 weeks or until your next pay date. The loan is paid off in full once your paycheck does finally arrive. Payday loans are not meant to be a long-term solution. They are specifically designed to get you to your next paycheck when you're in need. They can help short-term problems not become long-term ones.
Payday lenders will clearly define the rates, terms, and conditions of the loan in your loan contract. You should be able to know just how much your payday loan will cost you. That way you can include your payday loan into your budget and figure out ahead of time how you'll pay it back once your next paycheck arrives.
Pay Emergency Expenses
Life throws us a lot of curveballs, like unplanned medical bills, sudden moves, cars breaking down, or house repairs. When unexpected expenses come out of nowhere it can mess up all your financial plans for that month. You might not be ready for sudden expenses because you still have a week until your next paycheck arrives. It is in cases like these that people most often use payday loans.
What are the Disadvantages of Payday Loans?
There is a debate around payday loans and whether they are beneficial or not.
Payday loans can become a problem when they are too heavily relied upon by loan customers. But we financially depend on a lot of things, like our jobs for instance, and when they unexpectedly fall through or fall short, payday loans and other loan services like it are there to help you out of those tight spots.
High Interest Rates
Payday loans are available to a wider range of loan customer. The lowest of credit scores can still apply and it is because of this added risk that they come with higher interest rates.
Traditional Financial Services
Many opposers of payday loans want loan customers to use traditional financial services like banks and credit unions rather than alternative financial stores. But payday loan stores exist because sometimes banks are closed out to those who can't meet their requirements.