“Payday loans has earned a spot in the heart…”
Payday loans since created have become the most popular and controversial financial aid in the industry, because of its benefits and drawbacks. This article discusses the so-called benefits that outweigh the drawbacks, so you can understand the allure that attracts consumer.
The fact that customers do not have to go through the cumbersome process of securing a loan unlike when applying with banks and other financial institutions, payday loans has earned a spot in the heart and mind of the people as the best source of instant cash in times of financial difficulties. But as said a while ago, there are drawbacks that scared most people from taking advantage of the service offered by payday lenders.
What Are The 2 Main Benefits of Payday Loans?
The following lists are benefits that make these types of loans attractive to consumers.
Instant Approval – The foremost factor that makes these loans addictive is the instant or immediate approval of loans, which does not last longer than 24 hours. In fact, most payday lenders approve or disapproved loans within 2 hours of submitting the application form.
No Credit Score – Payday lenders do not based their approval on borrowers credit score but on their present salary. In other words, if you are a salaried individual with bad credit score, you can still get a loan.
What Are The Payday Loans Drawbacks?
High Interest Rate – The interest rate of payday loans are exorbitant, no doubt about this fact. The cost increases when you keep on defaulting, until the loans have skyrocketed to a staggering amount and this is the reason why most people do not want to take chances.
Addicting – The instant loan approval has made payday loans a habit, instead of just a source of immediate fund for urgent and unexpected expenses.
Payday Loan Conclusion
Payday loans can be addicting if you have no self-control, or just someone who does not care paying extra but this problem is easily solve if one is willing to live within their means unless circumstance require them to borrow again. Now, when it comes to high interest rate, keep in mind that payday lenders are risking their capital to provide loans to people with bad credit score, so it is only natural that you pay more not because it is a payday loan but comes with a privilege.
In my humble opinion, payday loans truly outweigh the drawbacks if you look at the benefit of these types of loans.Share