What are Instant Cash Advances?
In essence, payday loans are loans that are offered to borrowers against their income or salary for the next month. These days, it is obvious that these loans are very easy to apply for and get approved for, especially considering that a lot more payday companies and financial institutions are creating websites to make instant payday cash advances more accessible and convenient for borrowers.
Why Can Fast Payday Loans Be Troublesome?
While it could be very tempting to take out a loan with the ease of application, it remains very important to know when it is right to have such a loan. What this means is that you must first be sure that you can pay for the amount you will borrow along with the loan interest in just a month. Otherwise, you will find these cash advance loans a really bad idea.
Advantages of Cash Advance Loans
- Guaranteed loans today allow its borrowers to get up to $1000 within just a day’s notice.
- Borrowers with poor credit history, have suffered personal bankruptcy, or even have an outstanding debt, are all in a position to apply for a cash advance loan.
- When applying for a payday loan, the only proof that you will need is one that will verify your current employment and ability to repay the loan you are applying for.
- The paper work involved in guaranteed loans today are very simple and easy, and you will be asked to provide very few and basic details, such as your name, age, address and bank account.
- It takes less than an hour for all the paper work to be finished, which makes it possible for the money being loaned to be transferred to your account in 24 hours.
Disadvantages of Payday Loans
Before you opt for any type of payday or guaranteed loans today, it is recommended that you consult an expert first. See to it also that you have researched enough information about the company you may borrow from just to make sure that you won’t end up losing so much money later on.
- It is important for payday loan borrowers to realize that in taking out such loans, they are accountable for repaying the entire loan amount plus interest. Failing to do so may certainly affect the borrower’s credit standing.
- When it comes to the loan term or duration, you will have only 14 days to settle your payday loan. In case you are unable to meet this due date, you will have to suffer the consequence of paying additional charges for the delay of payment. And so, it is likely that you will end up paying interest that is higher than the amount of loan you took.
- Guaranteed loans today are not the best option for urgent cash needs. It is reasonable to say that those who should consider these loans are those in desperate situations where money is desperately needed. Borrowers must be very careful to not rely on such loans too much because it can cause them more harm than good.
- Perhaps the biggest disadvantage of guaranteed loans today is that you can only borrow small amounts. The maximum amount allowed for payday loans may vary amongst countries or even states, but in general, it would range from $500 to $1000.