Not every emergency situation, credit problem, or debt issue is right for a payday loan, otherwise known as a cash advance or PDL. Payday loans are short term loans that give people with money upfront, but are required to pay the full balance within a couple of weeks, or until the next pay day. There are some benefits to short term loans, but there are also some points to think about before getting them to know if they are right for the scenario. The following data will go over some of the benefits to help people to know when is the right time to use payday loan service, and when they should not use them.
Pros of Cash Advance Loans:
* Credit checking is not required, and the loan info doesn't get reported to the credit bureaus so these loans don't effect credit history or score. This can be both good and bad as it helps to be able to get a loan without a credit check, but at the same time it doesn't help improve credit either. If a person gets a short term loan and fulfills their obligation on time, it will improve their credit score, but they don't reflect negatively if the loan is not paid back on time.
* Approval is simple and instant online and a people can get money no more than a bank and account and id. These cash advance loans are guaranteed using a bank account so all a person needs to get a payday loan is a bank account and they can get approved quickly without tons of signatures and checks.
* There a one-time fee for cash advance services and they do not charge installment payments or interest for these loans. Although they are required to call it APR, short term loans don't have any installment payments, but rather a person makes one payment to the lender and pays the balance in full. The fee is capped in most locations, but check with local state regulations for the fees for payday loan services.
Cons of Cash Advance Payday Loans:
* These loans will not improve a person's credit score or get reported to the credit agencies. This means that short term loans will not improve one's credit history.
* Short-term loans require the full loan balance to be paid back by the next payday, so unlike bank loans where a person is able to pay back the loan over a long period making small payments, these loans have to be paid back in full within a couple of weeks. This means that it's necessary to only take what a person can pay back within the give period.
Good Reasons To Use Payday Loans:
* Car repairs - Vehicles break down all the time, and this can be one of the most stressful things in life as people are not sure about repairs, costs, and how they are going to continue getting to and from work. Having so many things to deal with and being short money on top it makes this scenario perfect for cash advance loans. People can get the money they need today to fix their car and get back on track without any worry of being short funds.
* Unexpected Bills - Ever get a traffic ticket, or other last minute expense that is quite large and throws a budget out of sorts. Paying tickets, or other surprise expenses is another good scenario for short term loans. These loans can get the cash needed today to make sure the expense doesn't escalate more, making it tougher to pay back. Some expenses are very sensitive so making sure they are paid back on time is crucial and could be the right reason to get a short term loan.
* Not Paying Late Fees - Everyone has times when they are just short money for whatever reason and they are not sure how they will pay their bills. The problem is that almost all credit services will charge late fees for payments not paid on time. The late fees that companies apply can add up quickly and make another expense in themselves. Getting a payday loan to avoid paying late fees is also a good situation to use cash advance loans. Late fees from lenders can be as high as $50 for just one company, and they don't care what the balance is of the account or the amount due for the payment. If a person pays late they will be charged the same high fee. Getting one or two late fees may be okay, but if a person has to decide between getting several late fees or paying a cash advance fee, they better option would be the cash advance fee. The reason that the cash advance fee is better is because paying credit late not only charges a person money, but reflects negatively on their credit history and can hurt their credit score. Given a scenario of paying late fees and bad credit score over a short term loan fee, the better choice would be the short term loan and save the person's credit score. - 30462
Pros of Cash Advance Loans:
* Credit checking is not required, and the loan info doesn't get reported to the credit bureaus so these loans don't effect credit history or score. This can be both good and bad as it helps to be able to get a loan without a credit check, but at the same time it doesn't help improve credit either. If a person gets a short term loan and fulfills their obligation on time, it will improve their credit score, but they don't reflect negatively if the loan is not paid back on time.
* Approval is simple and instant online and a people can get money no more than a bank and account and id. These cash advance loans are guaranteed using a bank account so all a person needs to get a payday loan is a bank account and they can get approved quickly without tons of signatures and checks.
* There a one-time fee for cash advance services and they do not charge installment payments or interest for these loans. Although they are required to call it APR, short term loans don't have any installment payments, but rather a person makes one payment to the lender and pays the balance in full. The fee is capped in most locations, but check with local state regulations for the fees for payday loan services.
Cons of Cash Advance Payday Loans:
* These loans will not improve a person's credit score or get reported to the credit agencies. This means that short term loans will not improve one's credit history.
* Short-term loans require the full loan balance to be paid back by the next payday, so unlike bank loans where a person is able to pay back the loan over a long period making small payments, these loans have to be paid back in full within a couple of weeks. This means that it's necessary to only take what a person can pay back within the give period.
Good Reasons To Use Payday Loans:
* Car repairs - Vehicles break down all the time, and this can be one of the most stressful things in life as people are not sure about repairs, costs, and how they are going to continue getting to and from work. Having so many things to deal with and being short money on top it makes this scenario perfect for cash advance loans. People can get the money they need today to fix their car and get back on track without any worry of being short funds.
* Unexpected Bills - Ever get a traffic ticket, or other last minute expense that is quite large and throws a budget out of sorts. Paying tickets, or other surprise expenses is another good scenario for short term loans. These loans can get the cash needed today to make sure the expense doesn't escalate more, making it tougher to pay back. Some expenses are very sensitive so making sure they are paid back on time is crucial and could be the right reason to get a short term loan.
* Not Paying Late Fees - Everyone has times when they are just short money for whatever reason and they are not sure how they will pay their bills. The problem is that almost all credit services will charge late fees for payments not paid on time. The late fees that companies apply can add up quickly and make another expense in themselves. Getting a payday loan to avoid paying late fees is also a good situation to use cash advance loans. Late fees from lenders can be as high as $50 for just one company, and they don't care what the balance is of the account or the amount due for the payment. If a person pays late they will be charged the same high fee. Getting one or two late fees may be okay, but if a person has to decide between getting several late fees or paying a cash advance fee, they better option would be the cash advance fee. The reason that the cash advance fee is better is because paying credit late not only charges a person money, but reflects negatively on their credit history and can hurt their credit score. Given a scenario of paying late fees and bad credit score over a short term loan fee, the better choice would be the short term loan and save the person's credit score. - 30462
About the Author:
For reliable payday loan services, Cash Advance Reviews provides options and ratings from some of the best payday loans online to help people get a quick same day pay day loans via the net.
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