Payday loans are life-saving in many situations, no doubt. The fast application process, the quick money acquisition and the possibility to get a loan even with a bad credit history are just few of the benefits the payday loans hide. However, every customer or a desperate for emergency money guy should have in mind that payday loans have their own weak points, too. Here are, for example, some disadvantages you need to consider about payday loans by all means:
- You cannot ask for a long period to pay your debt. The payday loans should be in most cases paid in a month.
- The interest rate in payday loans are usually very high – especially in comparison to ordinary bank credits, for instance. Moreover – you aren’t going to pay any interest rates if borrow money for an emergency situation from a friend, right?
- There are also various and a lot of additional fees to be paid when you apply and receive your payday loans. Attention: in many cases these fees are mentioned in fine font, so beware.
- You need to be employed on mandatory if you want to get a payday loan. Yet, this is in most cases the only condition to receive the payday loan approval.
- As a matter of fact, you also need to have a bank account, too. People without such are few, which is why we don’t estimate this condition as a negative and a hard one. Though, there is a % of the population (or immigrants) without a bank account. So they cannot apply for a payday loan.
- You can’t apply for big amounts of money.
- According to the statistics about 40% of today’s payday loan providers are frauds. So you need to be careful where you apply for such a credit.