When you’re in a financial dilemma, what do you do? Phone a family member or friend? Cut back spending elsewhere or apply for a quick loan?
Just about everywhere you look there are warning signs for loans and credit agreements but that’s only half the story. As some people have used loans inappropriately they have gained a somewhat marred reputation. But when they’re used for their intended purpose, they can actually prove to be beneficial. With short term payday loans, you are given an incredibly easy way to access cash quickly and this can be a vital lifeline for those facing unexpected expenses.
To help you decide whether a quick loan will help you out in a cash emergency, take a look at these pros and cons below for a balanced view.
- Quick cash: if you’re really desperate for money and don’t have time to wait for long and complicated paperwork to be sorted, as with more traditional forms of credit, then a quick loan is ideal. You can have the cash in your account within a couple of working days and in some cases within the hour.
- Privacy: when applying for a quick loan online you won’t be made to feel uncomfortable with questions about why you want the money or why you need a cash advance. You can get your loan without the added embarrassment.
- Credit check: many quick loan providers allow consumers with a poor rating to be approved. This is beneficial to people that have been struggling with their finances for some time as their credit score is likely to be very low.
- Unsecured: quick loans are unsecured loans so you don’t need to put any assets up as collateral.
- Expensive: quick loans are likely to charge higher rates of APR than bank loans, but it’s important to remember that APR is the annual percentage rate and your loan is only intended to be taken for 30 days or less. This means the amount you repay will be much lower so always look for monetary examples rather than looking only at the percentages.
- Not a debt solution: it’s really important that people remember that cash loans are designed to help plug the gap between paydays but should not be used as a solution to long term debt.
- Repayments: due to their short term nature, these loans rely on borrowers being able to make a single repayment for the full loan amount (plus interest) within a one month period. If you’re unsure of your ability to do this then you should consider other options.
If you’re unsure whether a cash advance is right for you, here is a good resource for more info on quick loans. Impartial financial advice should always be sought when considering borrowing money and many online can help you find out more about the options available.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.