Payday loans have been a hot topic of discussion from years now. Critics have been criticizing payday loans since the day they were introduced. If you have been thinking of taking payday loans or have taken them before you would know they are not as bad as they are! The reputation given to them is bad but they are in real quiet helpful if you are thinking of using them in your favor.
payday advance loans
The ease of availability of payday loans is something that makes a person attracted to get them. Whenever a person is in dire need of money instead of approaching a relative or friend they tend towards taking a payday loan. Payday loans are readily available online, you just need to fill up a form and follow up with easy formalities to get the loan.
The loan needs to be repaid by next pay date. Payday advance loans can be taken up to $1500. There are some lenders who give a loan up to $1000. Also if you are taking loan for the first time, many lenders would resist giving you a loan of $1500 for the first time. The best part about the payday loans is that you can repay them and take them again next month, if need arises.
The rate of interest charged by payday companies varies from 20%to 40%. The only drawback that you may face in these loans is that if you are unable to repay the loan in time, the interest rate is doubled and you end up paying much more than initially finalized.
The best way to take advantage of these loans to keep your cycle inline, don’t miss out on the repayment date and enjoy saving on other bills. For example if you have a repayment date of your bank loan coming up and you don’t have much cash in your bank or at hand then you can take a payday loan. This way you will be able to save yourself from paying extra fees to any bank. Your repayment cycle will not break which will not reflect in your credit check also.
Repaying the payday loan also is essential. You need to foresee how and when you will be getting your salary and how easily you will be able to manage your pay. There are a lot of checks and formalities that have been introduced for payday loans as well lately.
The government and critics have forced the lenders to check the credit history of the borrower as well as calculate his expenses in advance before he gets the payday loans. This is not only favorable for the borrower but the lender as well as the borrower. The lender enjoys the security of getting his money back, whereas the borrower does not fall in the vicious cycle of payday loans.
So next time you think of taking a payday loan you must re-valuate the finance and foresee the management you will have to do to pay the loan in time and use them in your favor.