The Disadvantages of Borrowing a Payday Loan
What constitutes an emergency varies from person to person. For some, it means paying the electricity bill, so the power isn’t shut off. For others, it means making an auto loan payment, so their car isn’t repossessed.
Another benefit of using payday loans is that payday lenders have more relaxed lending criteria. You can often get approved for a payday loan even if you have bad credit. You’ll have your money within 24 hours if you get approved.
Most people are aware of the main problem of using a payday loan – the high interest rates. Payday loans are typically a last resort for those with a bad credit score. Those people are considered a higher risk, which means that a high interest rate is the only way they can get approved.
Payday loans are infamous for having interest rates in the triple or quadruple digits. (suite…)