The best and worst about taking instant loans

Did you just blow up your entire salary on partying and there are still a few days left for the next salary credit to happen? Well, this certainly is a critical situation if you get broke towards the end of the month. To find a solution to this problem, you may either ask some amount of loans from your friends or family or the other option available is to get instant loans from the various online portals. If you are the one who is hesitant to ask someone for help, then it narrows down to looking up for a suitable online portal like to rescue you from this financial crunch.

Such portals can solve your problem within no time and can hand over the cash as early as a day. They can be your savior in such tough times if you have nowhere else to go.
But, as easy as it may seem, there is also a catch in these transactions. Everything has its pros and cons, and so does these payday loans. Lets us see what the benefits and drawbacks of the instant loans are.

Instant credit in the account– these payday loans give you an immediate transfer of the requested amount in your bank account. This is the most significant benefit of such online portals. Once your loan request has been approved, the money reflects in your account almost instantly and is available for withdrawal for your immediate use.

The application process is done online– another significant advantage of these payday loans is that the entire process is conducted online. You can apply for these loans at any time of the day or night, and what is best, you do not even have to contact anyone. You are a few clicks away from getting your money without even speaking to anyone!

No credit check made– when you apply for an instant loan, you don’t have to share your previous records. In almost half an hour, your request is processed, and the amount is credited. Unlike the conventional loans, where it might take a long time to get your credit check done while applying for payday loans, you do not have to worry about your credit history.

After counting the benefits, let us now look at the drawbacks that go along with payday loans.

Higher interest rates– interest rates are higher than the short term loans that are offered by banks. These loans are meant for emergency needs, and since they are available almost instantly and for a short period, the interest rates are quite high.

Additional fees on being late– one crucial thing that you must keep in mind while taking payday loans is that you must take up such loans only when you are confident about paying it back on the pre-decided date. If you fail to do so, you will have to bear additional charges along with interest, owing to which the amount to be returned will be much more than expected.

Not a permanent solution– it is not going to a recurring scenario that you run short of cash at some point in time, so making it a habit of taking payday loans should not be inculcated. Not only this, if you keep taking these short-term payday loans, it will hamper your credit score. On not paying them on time will also disrupt your score and create problems in future while doing any other transaction. Many companies check your credit score before giving you a loan, and if they see that you take up payday loans on a regular basis, they might deny you a loan or a credit.

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