Payday loans are bad credit loans which are normally given out without security. They are also known as unsecure cash advance loans, payroll loans or payday advance. Accessibility to these cash advance loans relies on the borrower having current or previous employments payroll records. Anyone above eighteen years with a checking account and a monthly salary is eligible for unsecure personal loans. However, different countries and states have different unsecure personal loans legislation. In addition, the annual percentage rate charged on these loans is not constant.
In the recent days, fast cash have become a common source of emergency funds for employees. People take these unsecure cash advance loans for different reasons but mainly to cater for emergencies such as medical expenses. The unsecure personal loans, however, comes with different advantages and disadvantages which a person must consider before taking up one.
Advantages of unsecure personal loans
Protecting your credit rating – sites such as payday loans Houston offer fast loans that do not have a negative effect on your credit rating hence a great source of some quick online cash.
Quick source of cash – the unsecure loans can be received within a few minutes or hours, hence can help in case of an emergency.
Cash advances can be accessed by just about anyone – people with bad credit ratings can access the personal loans since the loan does not depend on one’s credit rating. You can access the cash advance loans as long as you have a checking account and a monthly salary.
The application process is simple and easy – the basic process involves a consumer applying for the unsecure cash advance loans and the bad credit loans lender verifying employment and account details, and then finally approving. In fact, online applications are very fast and easy.
Extensions are possible – bad credit loans allow a borrower to apply for loan extension in case one encounters some difficulties in meeting the payments required by the due date agreed upon.
Cash advances save you money – Using bad credit loans to cater to bills and expenses helps you avoid charges and late credit card fees.
Disadvantages of cash advance loans
They have high fees and interests – personal loans come at a high interest rate and it gets even higher with a loan extension.
The loans are for short period – unsecure loans have a short repayment period hence cannot help you if you require a loan for several months.
Fraudulent lenders – cash advances are also offered by illegitimate sources who may resell your information. This happens especially on online sources.
Payday loans only offer small amounts of cash – these unsecure personal loans cannot help you if you are looking for a lot of cash hence you will have to find another source of cash.
Cash advance are a good source of fast cash since they are easy and simple to access. They are very helpful in case of emergencies. However, cash advances can be addictive and can lead to one accruing a huge debt. It is necessary to do research on interest rates and payment terms before choosing where to take bad credit loans. In addition, it is important to ensure that the lender is legitimate and trustworthy.