With 1000's of lenders online getting a payday loan in America isn't a difficult task at all. But just because its easy doesn't necessarily mean that it's the best idea. Payday loans in the USA have a bad reputation because the terms of these loans are generally much stricter, with much higher interest rates and fees than their conventional counterparts.
But remember just because something has a bad image and bad reviews doesn't necessarily mean that it can't be helpful when used responsibly especially for those in desperate need of a quick fix.
Below are objective facts about online payday loans that you should consider before you decide whether or not this is the right course of action for you.
Pro: Payday loans are convenient.
Generally speaking, all you need to qualify for a payday loan is a steady income, a state-issued ID and a checking account. When you apply online for a payday loan in the USA, the chances are very high that you'll walk away with the cash to pay your bills or whatever you need it for in less than an hour and a maximum of the next business day.
Generally speaking, all you need to qualify for a payday loan is a steady income, a state-issued ID and a checking account. When you apply online for a payday loan in the USA, the chances are very high that you'll walk away with the cash to pay your bills or whatever you need it for in less than an hour and a maximum of the next business day.
Con: Payday loans can be expensive.
The cost of the money borrowed from a payday lender would be comparably expensive if these loans had the same repayment terms as their conventional counterparts. The annual percentage rate of interest on a payday loan ranges from roughly 200% to 675%. But since these are short-term loans, you generally repay only $7.50 to $25 per $100 you borrow. That may not seem like a lot, but when you borrow more than $1,000, it can add up quickly. So generally it is recommended that you take an amount less than $1000.
The cost of the money borrowed from a payday lender would be comparably expensive if these loans had the same repayment terms as their conventional counterparts. The annual percentage rate of interest on a payday loan ranges from roughly 200% to 675%. But since these are short-term loans, you generally repay only $7.50 to $25 per $100 you borrow. That may not seem like a lot, but when you borrow more than $1,000, it can add up quickly. So generally it is recommended that you take an amount less than $1000.
Pro: Payday loans are available to anyone with a poor credit score.
Often, the reason many people turn to payday loans is because they cannot qualify for a conventional loan because their credit score is damaged. By and large, payday loan services do not check their customers credit scores whilst there is also a small chance of improving your credit score by using these services.
Often, the reason many people turn to payday loans is because they cannot qualify for a conventional loan because their credit score is damaged. By and large, payday loan services do not check their customers credit scores whilst there is also a small chance of improving your credit score by using these services.
Con: Payday loans are not a long-term financial solution.
If you're looking to get a payday loan, the chances are that your financial situation is in a bad state. While getting an injection of cash may alleviate your problems in the short term (a matter of days or even hours), it cannot fix the underlying problems that led you to a situation in which you needed such a loan in the first place.
If you're looking to get a payday loan, the chances are that your financial situation is in a bad state. While getting an injection of cash may alleviate your problems in the short term (a matter of days or even hours), it cannot fix the underlying problems that led you to a situation in which you needed such a loan in the first place.
Pro: Most payday loan companies are professional, upstanding institutions.
This industry has grown substantially in the last two decades. Payday loan institutions have matured from small operations to large chain and franchise establishments. A natural consequence of this is that management and the market have cultivated companies that look and feel like regular banks. Additionally, the employees who run these stores are professional and courteous, and they treat their customers with the respect they deserve most of the time.
Con: Some payday lenders can be dishonest.
Unfortunately, there are some bad apples in the payday loan spectrum. These sharks should be easy to spot because they behave like loan sharks rather than legitimate business people. A good rule to follow is that if you ever feel uncomfortable borrowing money from a payday lender, don't do it. There are hundreds of other scrupulous lenders who will gladly take your business without ripping you off.
This industry has grown substantially in the last two decades. Payday loan institutions have matured from small operations to large chain and franchise establishments. A natural consequence of this is that management and the market have cultivated companies that look and feel like regular banks. Additionally, the employees who run these stores are professional and courteous, and they treat their customers with the respect they deserve most of the time.
Con: Some payday lenders can be dishonest.
Unfortunately, there are some bad apples in the payday loan spectrum. These sharks should be easy to spot because they behave like loan sharks rather than legitimate business people. A good rule to follow is that if you ever feel uncomfortable borrowing money from a payday lender, don't do it. There are hundreds of other scrupulous lenders who will gladly take your business without ripping you off.
Summary
Nobody ever wants to be in a situation where they have to take out a payday loan to make ends meet. It's good practice to avoid them whenever possible, but there are times when payday loans are the only option available and help millions of consumers around the world and especially in the USA and UK. The good news is that there are a few good companies to choose from, and you have the luxury of being selective about which lenders you do business with. Payday loan comparrison sites usually find the cheapest loan for you and one that I recommend is wagedaycash.com. A simple 60 second form can get you the money you need without delay and at no risk to the borrower no matter what your circumstances are. Just make sure you pay back on time for the best experience.
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