Today, non-bank financial institutions offer a variety of loan products. Among the most popular types are the so-called payday loans. They are given to users for a short period of time and must be repaid by their next payday. At first glance, they seem super convenient and many people make good use of them when unexpected expenses occur. But like any type of credit, payday loans have their own advantages and disadvantages. That is why, we will provide you with the most important information about them to help you decide if it is worth taking one.
Online Payday Loans – What They Are
If you are looking for short-term online loans, you should check if your lender offers payday credits. These are small loans that you must repay within 30 days. No matter how well you plan your monthly budget, additional expenses can always pop up. And if you don’t have the necessary funds at the moment, taking such fast loans online would be the most appropriate solution. Most lenders aim to satisfy new customers as much as possible and may propose to you interest-free payday loans. Discounts and promotions like that are offered to regular customers too.
Terms and Conditions
Compared to the typical consumer loans, these have slightly different terms. Amounts up to a maximum of 1000 BGN are granted and for a very short period – 1 month. Some companies like ProfiCredit offer the option to extend the repayment period an unlimited number of times if you are unable to repay the entire loan at maturity. The procedure itself is quite simple. To apply for payday online loans, all you have to do is fill in a short form. You have to provide only your name, personal ID number, and contact information.
Costs and Other Fees
Before you rush into taking payday loans, you should take into consideration their costs. The interest rate varies from lender to lender and you can check it using an online calculator. You just have to pick your desired amount and period and the interest rate will be displayed below. These payday fast loans online rarely have any additional fees. But it’s always a good idea to read the full terms and conditions so you don’t miss something important regarding fees.
Pros and Cons
When you need money urgently, there is no easier solution to your problem than to take a payday loan. But like any financial product, this type of credit has its pros and cons. To decide if it is suitable for your case, you should learn which are the most important of them. Let’s see what are the key points:
Advantages:
- Easy access and convenience
- Fewer requirements compared to bank loans
- Fast approval
- Flexible terms
- Possible approval with bad credit
- No guarantors needed
Disadvantages:
- Payday online loans can be expensive
- Might lead to a debt cycle
- You can be sued for belated payments
Taking a Payday Loan with Bad Credit – Is It Possible
If you apply for a bank loan, it is almost impossible to get approved with bad credit history. But the situation is a bit different when it comes to fast loans online. It all depends on the policy and decision of the particular non-bank financial company. A large number of lenders carry out checks in the Central Credit Register and allow payday loans to people with past late payments or shorter periods of late payments. So, getting such a loan with bad credit is quite possible.
Is Taking Payday Loans Worth It
Payday online loans can be of great help in difficult times. However, let’s not forget that everything should be within normal limits. If you start taking out such loans too often, you may end up in a cycle of debt. Therefore, you should consider your financial state and capabilities carefully before you apply for your next loan. If you’ve thought it through and managed to pay back your payday loan on time, you could say that it’s worth it.
