Quite often many of us may get caught off guard when we get an unexpected bill for car repair or our budget may get off the spin due to large medical bill that we need to pay immediately. On such occasions, we look for some short-term loan and online payday loans to get rid of such situation.
Payday loans are short-term loans where one can obtain quick cash even if your credit rating is low. It has been designed in such a way that one can meet his immediate requirement and immediately after receiving his next pay, he should pay back his loan amount so that the person may remain debt free. Since, the interest rate of payday loan is pretty high as compared to any other traditional loan and on the top of that one has to pay additional processing fee too. Therefore, payday loan can become very costly if the amount is not returned as per the agreed terms of the loan.
There are many lenders available in the market like Swift Money who can help you to obtain such loan and will make sure that you can get your loan within single working day to pay your urgent bills.
Let us see few pros and cons of payday loans. To start with, we will discuss about the pros first:
- Very convenient
One need not visit a lender in person in order to obtain the payday loan and also there is no complicated paper work needed to get the loan approval. One can just fill an online form and sign the form electronically to compete the formality.
- Very quick turnaround
Applications submitted online are processed within few minutes after you submit and you can check online whether your loan has been approved or not. Now based on the mode of receiving your payment that you have selected the money will be sent to you and within next 24 hours you will get your cash.
- No collateral needed
This is a completely unsecured short-term loan and you need not submit your property as a security,
Following are the cons of this type of loan:
- High cost
As already mentioned before the rate of interest for such loans are much higher than any other kinds of loans and you also have to pay administration charges.
- Non-reputable lenders
Many lenders that are available online are not very well known so one has to carefully select the lender.
- Can fall on debt trap
If you fail to repay on your next payday then your interest get accumulated and may lead you to debt trap.