Like everything else, there are two sides of payday loans as well. Where in some places, payday loans are better than other kinds of loans, it also has certain drawbacks that make it a little controversial. However it is important and necessary for the borrowers to k at both sides of the loan before making a decision to go for it.
To makes things easier, we have a compiled a list of all the good and bad features of payday loans.
1. What makes them good?
- The loan gets quick approval within moments of application.
- The amount is transferred to the checking account of the borrower within three days, in case of sameday payday loans; the amount is transferred on the same day.
- Some lenders even present an option of delivering cash amount right at the doorstep of the borrower.
- Payday loans have minimum requirements and least documentations needed at the time of applying.
- A person can also apply online for this loan. Regardless of the time of the day, a person is not limited by the restrictions of timings to apply for it.
- There is very less chance of getting rejected for the payday loan. As long as you fulfill all the basic requirements of the loan, you are good to go.
- If you constantly deal with only one payday lender and a trusty relationship have been formed between the two then the lender may also allow the borrower to borrow a larger amount.
- With incomes limited and expenses on the rise, most people only live paycheck to paycheck; the only kind of loan that they can afford to take is payday loan.
- There is absolutely no need of any kind of collateral when applying for the payday loan.
- This payday loan target the audience that is living on low income and has no other extra source of income to look forward to other than the services of payday loan.
2. What makes them bad?
- Most people find the interest rates of payday loans to be too much. Especially if the lending is being done through a local lender ho often charge interest rates as much as they want.
- It gets worse, when the borrower is unable to pay for the payday loan at the payday, and has to extend the deadline. Each more extra day means higher interest rate.
- Sometimes at failure to pay at time, they not only charge interest rates but also add additional fees and charges.
- When a borrower does not have enough amounts in their checking account, the lenders causes overdraft fees by constantly trying to withdraw cash, which accumulates even more amount on the borrower to pay.
- In case the borrower has chosen the wrong online service for their payday loan, they have involved themselves with the risk of getting their personal information leaked to various other marketing businesses.
The good news is, with proper consideration and a little smart thinking a borrower can steer clear of these cons and can enjoy all the benefits. Visit https://paydayloans.quiddicompare.co.uk for more information with regards to payday loans.