Finance Blog

Check These Pros And Cons Before Applying For Cash Advance Loans!

227 0

At times, expenses are hard to predict. If you are having a difficult month, you should consider getting a payday loan, better known as a cash advance loan. A cash advance loan is a short-term credit, not exceeding $1000. Such loans are offered for a period of four weeks or less, depending on the norms and state-related regulations. Before you apply for a cash advance loan, here’s a take on the pros and cons. You can check details related to application requirements at https://slickcashloan.com/cash-advance/.

The pros

  • Easy to get. You don’t have to worry about getting a payday loan, as long as you are over 18 years of age, have a legal job and a steady income. Many lenders don’t even check the credit score of the applicant, if he/she has a stable job.
  • Use it for anything. There are no restrictions related to the loan amount – you can practically avail the cash for almost any kind of payment or expense.
  • Apply online. Well, you don’t need to run after loan officers anymore. The whole process of applying for payday loans can be completed online, and you will be intimated if your loan has been approved.

  • Quick approval. Payday lenders work around the clock, so you can get a loan even after the banking hours. In most cases, cash is deposited/transferred into the account of the borrower within one business day.
  • No stress about collateral. Unlike a traditional bank loan, you don’t have to bother about pledging an asset. Whatever you borrow will be repaid from your salary account.

On the flip side

While payday loans are handy, critics often argue about the high interest rate. It is always advisable to take a cash loan when you are sure of repaying it back on time. Lenders may agree on extending the term for a service fee, but the charges can be high, and if you extend the loan beyond a few weeks, you may end up paying more in interest. Also, lenders may not check your credit score for giving the loan, but if you don’t pay on time, it can affect your score, which is something you need to know.

If you follow the terms and conditions and use the option responsibly, cash advance loans can be useful in more ways than one. Ideally, you should consider paying it back on the due date to avoid the complications that critics often talk about.