Advantages and disadvantages of a Payday Loan

 

A payday loan singapore is a type of salary loan that has a short term life, usually until the next payday, but yielding high interest rates due to its nature of being granted without security. Now is it good to get a payday loan and what will we have to look out for when try to get one.

Is it the best loan to get for our needs? Here are some of the advantages a quick cash loan has and the disadvantages that a borrower must be aware of to avoid any problems when getting one.

Advantages:

  • Quick Remedy – a payday loan can be granted quickly. This is the loan a borrower can get who needs cash within a very short time frame. It can be used to pay for a house or auto repair, paying debts that are becoming due, or even buying needs that will help you until the next payday.
  • Borrower Qualification – most payday loans do not require credit reports. These reports are usually the reasons why a borrower is declined. The reason they don’t require credit reports because lenders become a priority to be paid once payday comes.
  • Credit Score – a payday loan is a remedy that can be taken to pay debts that are falling due within a short time. Getting a payday loan to pay your debts instead of allowing the debt to become overdue allows the borrower to keep a good credit standing on the debt that is falling due.

Disadvantages:

  • Due Date – if you require time to pay your loan, this is not the loan that you should be going for. Payday loans are often due in less than 30 days, when the borrower’s payday arrives.
  • Employment – a payday loan’s priority is to get paid on the next pay date. That is why a lender requires they borrower to have employment.
  • Interests and Fees – one of the downside of a payday loan is its high yielding interest rates and big amount of fees.

Similar with other loans, Payday loans have its advantages and disadvantages. It is the borrower’s responsibility to check if the advantages fit their needs despite the disadvantages present.