Many people shy away from payday loans because of the high interest rates. While the interest rate might be higher than that of a traditional bank loans, it doesn’t mean that payday loans should be written off completely. In fact, there are a few good reasons why you should consider taking payday cash loans the next time you find yourself in a financial bind.
One of the great features of a cash loan is you don’t have to keep track of your payments. The payment is automated depending on your arrangement with the lender. This means you don’t have two write and mail checks and no risk of forgetting to make a payment.
Might be cheaper than Credit Card
A low cash advance limit means that you can’t borrow much from your credit card in case of an emergency. You also have to contend with interest rates and substantial fees and charges for cash advances on your credit card. A payday loan may be much faster and cheaper than what your credit card company offers you. It’s a great option if you have a financial emergency or have fallen short on cash for the month.
A good lender sends money directly to your account after filling out an online application process. This means you don’t have to drive, stand in line or inconvenience yourself in any way. You also get your cash within 24 hours making these loans very easily accessible. It doesn’t really matter that you have poor credit or no assets. As long as you show you can repay the loan, you have quick and easy access to cash in case of an emergency.
Paying a loan can be strenuous sometimes especially if you fall into unexpected financial difficulty. This doesn’t have to be a problem as long as you are willing to honor your payments. You can negotiate your repayment terms to make the situation a little easier and more manageable. This is difficult to do with a credit card loan whose terms tend to be very rigid. You also risk damaging your credit score in this scenario which is unlikely with a payday loan unless you refuse to honor your payments.
Improve Your Finances
Finally, if you have a loan payment due or credit card debt you have been unable to pay, a cash loan may offer the perfect solution. You can avoid interest hikes, late fees and penalties on late payments on credit card bills or car payments.
Cash advances sometimes get a bad reputation but they can be extremely helpful. Make sure that you choose a reputable lender who is transparent about interest rates, charges and fees.