I get it; you are still having difficulty trying to decide whether a payday loan is the best solution for you or not.
Well, the truth is that, with the many negative things you’ve heard about online payday loans, there are still many more good things to pick from it.
Thus, a good overview of the different pros and cons of payday loans will help you see a better picture of how this kind of funding can prove pretty effective to your finances today.
There are a whole lot of false narratives flying around about online payday funding and lenders, but I must tell you, they are not all true!
In fact, online payday lenders are actually friends that just want the best for both you and your personal finances, thus, the pros and cons of payday loans.
Pros and Cons of Payday Loans
First off, let it be clear – payday loans should never be seen as a debt trap!
It only becomes a debt trap when you want it to be one. There are actually rules and regulations that govern online payday loans and lenders to protect you (the borrower) from dubious lenders who are only out there for their personal gains.
The five (5) most significant pros of online payday loans include the following:
- Speed and convenience
- Unsecured loan
- Minimum requirements
- Flexible loan terms
- Short-term funding
- No-credit check loans
These can be broken down thus:
#1: Speed and Convenience
When it comes to getting all the funds you need approved and disbursed within a day; there’s no other platform that does this than online payday lenders.
The time it takes you to complete a payday loan OH request is not more than five (5) minutes, after which you will have all the funds you require sitting in your bank in about 24 hours, or no later than one business working day.
This is why online payday loans are also referred to as 24-hour payday loans.
You don’t even have to step a foot out of your house in search of funding. Everything can be done from the comfort of your home, either on your mobile phone or laptop, so long as such device has access to an internet connection.
#2: Unsecured Loan
This is a kind of funding that doesn’t require you to provide any of your personal assets or belongings to stand as a form of collateral for you to secure your loan offer.
This, in turn, protects both you and your assets from potential loss.
#3: Minimum Requirements
Seeing that this is a kind of loan that doesn’t require you to provide a form of collateral, the requirements for getting funding are made much easier.
Thus, to better protect lenders’ interest and ensure that they get back all their funds whenever it is due, consumers are expected to show at least proof of a regular source of income as one of the basic requirements for securing their funds.
Also, consumers are expected to have attained the legal age of 18 years and above to qualify for funding.
All these minimum requirements make it even easier for you to secure all the funds you need and when you need them.
#4: Flexible Loan Terms
Consumers are in total control of how much money they can take up in funding.
When you apply for an online payday loan, you do so at your liberty and free will. Based on the urgency of your financial need, you can decide the exact period of time your loan offer should extend.
Thus, before you decide to apply for funding via an online payday loan direct lender, we strongly advise that you know the exact repayment terms that work best for you.
Online payday loan acceptance criteria are often less strict than other lending companies and traditional lenders.
Borrowers with poor credit histories and lower incomes are provided access to funding, regardless of their current state of finances.
#5: Short-Term Funding
This is where online payday loans differ from other traditional lending organizations.
Traditional lending organizations like banks and credit unions make it very easy for consumers to fall into a debt trap by offering debt financing and loans that last for a very long period of time, and seeing that you’re potentially putting your assets at risk, you might be forced to take up more loan offers as a way to pay up your pending debt.
But with online payday loans, the risk factor is almost at a minimum of zero (0).
Online payday loans are basically just designed to help cover your personal finances for a short period (usually in days or weeks). The entire loan term usually extends to your next paycheck, which in turn makes it really easy for you to pay back your loan settlement whenever it’s due.
#6: No-Credit Check Loans
Seeing that most consumers are engulfed by their everyday living, it’s very easy to see yourself developing really bad borrowing habits that, in turn, come to play negatively in your credit score and rating.
This makes it very difficult for you to get funding whenever you need it!
Now, payday loans make it very easy for anyone with a poor credit rating to get all the funds they need, irrespective of the current state of their financial condition.
In fact, most online payday loan direct lenders often reflect any positive change made in your borrowing habits to your credit rating, thus making it easier for you to get more funding when you need it.
The major drawback of an online payday loan is that it only comes as a form of small loan that only lasts for a short period of time.
This means that you might be limited to as many funds as you are allowed to take at a time.
Most online payday loan direct lenders only offer as much as $5000 in payday funding to lenders, which can be a limiting factor when considering larger purchases.
Also, the entire loan term usually goes for as long as a 30 days time frame.
But still, you have to understand that all these were put together only to ensure that lenders get back all their funds efficiently.