What are the pros and cons of payday loans and cash advances?
1. Payday loans and cash advances are relatively easy to obtain.
2. In most instances, a credit check is not necessary in order to be approved for a payday loan or cash advance.
3. A payday loan or cash advance can be approved and funded quickly, in most cases, the very next business day.
4. A payday loan or cash advance requires no collateral.
5. Payday loans and cash advances often require less paperwork than conventional loans.
6. Not only can one locate a payday loan or cash advance company close to home, it is also possible to obtain a payday loan or cash advance on the internet and in the privacy of your own home.
7. Payday loans provide quick cash when unforeseen circumstances arise.
1. Payday loans and cash advances can be very expensive, sometimes as high as 500% interest per year, or more.
2. If a borrower does not repay their payday loan or cash advance in full and keeps extending it, it can quickly lead to soaring debt and fees.
3. Some payday loan and cash advance companies utilize unscrupulous, unethical and, sometimes, illegal means to collect on defaulted loans.
4. Payday loans do not solve long-term budgeting problems and often only offer a short-lived solution.
5. Payday loans and cash advances are illegal in some states.
6. Many payday loan and cash advance companies make borrowers sign contracts stipulating terms that are highly favorable to the lender and not the borrower.
7. Some payday loan companies have been known to resort to unscrupulous and unethical means in order to collect on a loan.
Category: Payday loans