Pros and Cons Of Payday Loans

What is payday advance loan?

Payday advance loan or it’s another term cash advance– is short term loan until debtor’s next payday. Typically it’s a loan for the subitaneous scenarios, such as: subitaneous disease, catastrophe and other immediate money needs. Typical loan’s term is about two or three weeks, but it’s possible to restructure you loan for a next term. Normal amount of such loan type is 100$ -1500$ and only some unique lenders might provide you more then 1500$. Another function of payday advance– is a big rate, it’s actually huge if you compare it with typical loan type. This rate is about 390 – 900 percent per year!



The procedure of the loan is very simple – you have to do the following steps:

  • Choose the best lending institution for your scenario.
  • Determine your expected loan payment, to be positive, that you’ll have possibility to spend for your loan.
  • Examine terms and arrangements of online payday loan service. It’s crucial action, because the loan conditions various significantly form service to service.
  • Fill online application. Generally it’s a simple type with your individual information. In some services you need to send some individual files by fax.
  • Wait on authorize. Typically from 15 minutes to 1 day (it’s also various type lender to lending institution).
  • When approved, you’ll get your cash next business day on your conserving account.
  • When regard to loan become– pay your loan quantity and rate for payday advance loan usage.


So, actually, it’s quick and easy, however extremely expensive way to cover your financial needs. However as any another loan it has it’s own particularities: benefit and downside.


Payday advance loan advantages:

  • Fast method to receive extra cash. You can also follow twitter for fast cash.
  • Easy application for payday loan.
  • For numerous loan providers your bad credit rating is not an issue.
  • You needn’t send you personal file by fax for lots of services.
  • Online application procedure and authorize.

Payday advance drawbacks:

  • Big fee rate for payday loan use.
  • There is some danger to fall into “debtor’s jail”.
  • Thus, it’s much better to have some money resource for unforeseeable life circumstances or use some other (no payday) loan type, however if you have no money resource and you have bad or no credit rating– payday loan is best aid for you. As you see, primary payday advance disadvantage is the big application cost.

Payday loan is a nice loan type, which assists many individuals in difficult situation, but it is a good loan type only for those individuals, which know how appropriately calculate there future earnings!


Tips that protect you from Payday Loan Frauds

The following tips should protect you from payday loan frauds and reduce the risk of you becoming a victim of fraud. Most personal loan frauds are in the form of identity theft and these are the most dangerous. Because most lenders are brick and mortar businesses they are tightly regulated by the federal government. So any fraud perpetrated by a lender is quickly remedied. So keep these tips in mind when applying for a personal loan.

  • Account takeovers are the most common fraud type this happens when a thief gets your information from a personal loan application and buys products and services using your credit information. This can be detected by scanning your billing statements after applying for personal loans
  • After you fill out a personal loan applications, find out the way the company gets rid of them. If you are not confident in the way the bank or lender keeps or shreds them do not do business with this lender. Some lenders may be careless with your personal information.
  • Do not get into a personal loan contract if someone contacted you. This can happen by unsolicited phone calls, letters or emails. If you did not find the lender do not get a loan from them.
  • Be aware that there is increased risk of being defrauded on the internet as the anonymity of being online makes it easier for fraudsters to trick you.
  • Do not give a lender any money before hand. If a personal loan lender wants an application fee or processing fee up front look out. Lenders do not often ask for these types of payments for personal loan.
  • When a lender requests you to send money to another place by Western Union or by MoneyGram look out for a fraud.
  • If you sent money once do not send again many fraudsters will try to get you over and over again.

Only deal with well known lenders. A credit union or banks that you know or have known are always the best choice.

Those who believe they have been defrauded should report what happened as soon as possible. This will prevent others from being taken as well. Personal loans are generally a good way to get money when you need it. But, due to folks who want to take advantage of borrowers’ personal loan fraud is all around and thousand are tricked every year. There are unfortunately malicious individuals out there who would try to take advantage of you. Payday loan fraud is frighteningly common, and amounts to millions of dollars in losses every year.