Getting even a small loan with a poor credit score is almost impossible. But when you need cash quickly in case of an emergency, instant payday loans are a great option.
These instant loans are not only easily available online but they also have instant approval. This means that you can get the cash within the same day, regardless of your credit score. While instant payday loans provide you with fast cash for emergencies or unforeseen costs, these loans have some disadvantages as well.
Sometimes, you may not be able to financially sustain the repayment of these instant payday loans. So, if you’re thinking about getting an instant payday loan, you need to weigh the pros and cons and how it’ll impact you financially.
Pros of Instant Payday Loans
An instant payday loan is a kind of short-term loan that you can get quickly to meet your immediate cash needs. The payments are usually due within 2 weeks or until you get your next paycheck.
Instant payday loans have high costs and interest rates that charge triple-digit annual percentage rates (APRs). If you want instant payday loans online guaranteed approval – slick cash loan is the best company that offers instant payday loans across the US.
The following are some benefits of instant payday loans:
- Fast and Convenient
Arguably, the best thing about online payday loans is that these loans are fast and convenient. You don’t have to go through a painfully long application process or get involved in any paperwork. You simply have to apply for the loan, fill out a short application form, and you’ll get the cash within 24 hours.
This means you can get money quickly from the comfort of your home without having to wait long periods.
- No Credit Checks
People who have bad credit or no credit at all can greatly benefit from online payday loans. No credit checks are conducted before giving these payday loans. So, if you meet the eligibility criteria, you will never be denied because of your bad credit score.
Plus! If you decide to pay off your loan early, there will be no prepayment penalties involved.
- Safe and Secure
You can get a payday loan for any reason, whether it’s an emergency or any other problem like fixing your car. Online payday loans offer a safe and secure way to borrow money quickly.
Since these loans are regulated by the government, you won’t have to worry about getting a quality product.
Cons of Instant Payday Loans
Payday loans might seem like a good solution when you need urgent money, but you may get caught in a vicious debt cycle if you fail to pay it back on time.
Here are some of the disadvantages of payday loans:
- Costly Fees
Payday loans have a short repayment period and most borrowers are unable to pay back the loan when it’s due. In such a situation, if the borrower defaults on the loan, they can get sent to collections.
However, to save themselves from this risk, borrowers pay an additional fee to roll over the loan for another 2 weeks. This quick-fix can soon turn into a huge debt if the borrower keeps on renewing the loan.
- High-Interest Rates
Another disadvantage of payday loans is that these loans have high-interest rates. For every $100 borrowed, lenders charge a fee between $15 to $30. These interest rates are even higher than those on personal loans and credit cards.
Due to the quick turnaround time, costly fees, and high-interest rates, many borrowers are unable to pay back the loan on time. And so, the loan gets renewed so many times, leading to a debt cycle and facilitating unhealthy financial behaviour.