PROS AND CONS OF PAYDAY LOANS

The mushrooming of companies offering payday loans has led to their easy access and thus a majority of individuals are now getting the loans. This easy access has its own advantages and disadvantages. When you look at the positive side, you will have the money you need in case it is urgent. However, when you look at the downside, you may find that the cost can become a bit high in regards to payment of the loan plus the terms and conditions may not necessarily favour you. Therefore it is important to look at the pros and cons of payday loans before you make up your mind on whether you will take them or not.

One thing you have to stick to the back of your mind is that the stringent measures and terms on payday loans are a bit higher than the conventional ones. As much you will access your loan in a faster manner, you should consider things like how the loan will be paid back, what happens when you pass the time limit of the loan etc. The interest rates on these types of loans are again quite higher than the conventional loans and this is something that you should be prepared for. The following are some of the pros and cons of payday loans:

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PROS

  • They are convenient. We can all agree on the fact that accessing pay day loans is easier than the conventional loans. This is because the time gap between the application of the loan and the access to the loan is quite minimal. It is therefore faster for one to get the loan on application. This is quite good mostly for those who have emergencies that need fast attention.
  • They are easily available to all groups of people. Some people may be eligible for high amount conventional loans while others may not. No matter which group you lie, the payday loans are not tied to credit scores. You can get a higher payday loan than what you would have gotten with a conventional loan.
  • Most payday loan companies like Lucky Loans are credible and professional. As much as the risk may be high with payday loans, there are pretty many companies offering payday loans that are genuine and thus offer loans that are safe and risk free or rather have lesser risks. Especially if you look for one that has been in the market space for a long period of time, the experience would be worthwhile.

CONS

  • Some payday loan lenders are dishonest. As much as most of the payday loan lenders are honest, you cannot miss to find ones that are dishonest and out to dupe unsuspecting clients. This is therefore a call for you to do proper research before working with just any lender.
  • May not solve your problems fully. As much as many individuals go for payday loans as a result of certain troubles in life, in the long run they only lead to more trouble. This is because most of these loans are actually high in interest rates and thus would make you spend much more while repaying them.