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The Pros and Cons of Payday Loans

Written By emilie dane on Tuesday, April 23, 2013 | 1:44 AM

Payday loans are one type of short-term loans and the borrowers commonly get a loan of minimum $100 and maximum $700. These payday loans are given for instant use of any working person and s/he is bound to repay it on the next pay date. If you need instant loan, then you can apply for this type of loan at the nearest financial firm. This loan is available on the internet through the websites of the financial companies. You can also apply online to get a short-term loan for your essential need.

The process is easier than you are thinking. Fax and emails made it very smooth and simple. You can get the loan if you mail the companies or you can even send your application by fax and get the instant loan sitting at your home. You need to repay it when you will get your next salary. Make sure that you can repay the loan within the fixed time and you can give it back with the interest. If you are not sure that you will be able to repay the payday loans in addition with the interest, then think twice before you apply for this type of short-term loan. The pros and cons of payday loans are given here that you can understand them properly to make your choice.

The advantages of this instant Payday loan are many. You can get a loan up to $700 in cash if you are granted for that. You can get the cash instantly within a notice of 24 hours. Therefore, it is very simple to get the loan in a short time. It is an instant cash loan for all who work. In the other cases, the lenders first see the financial record of the borrowers. If the borrowers have a bad credit record, the financials firms hardly allow them to get a loan.

However, this instant short-term loan is for all. If the applied person has a bad credit, that will not be a problem for the company to grant him or her instant loan. If you can provide sufficient proof for your employment, the company will sanction a loan for you. You need to repay it in addition with the interest, when you will get your next salary.

Many disadvantages are also there if you get a payday loan for your use. The biggest disadvantage is that you cannot take much money as a short-term loan. The company will not allow you to take much loan. The range of maximum and minimum amount of loan depends on the state's law. Somewhere the upper limit is $1000 and somewhere it is $500. You cannot take more than that. The interest rate is very high in payday loans. The interest rates starts from 390% and it can reach a maximum level of 780%. You need to repay the loan with such a high rate of interest within 14 days from you take the fast cash loan.

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