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Good and Bad Side of Payday Loans

Everything in this life that has any value has a good and bad side to it. It’s often the case that these points determine whether it’s worth taking a risk on the idea or undertaking or not. This is also the case when you are trying to determine whether to get a bad credit payday loan or not.

For those of you who are like I was a couple of years ago and don’t have any idea what a payday loan is this is an excellent chance to discover what the good and bad points are. Just like the name implies a payday loan is a short term loan given between paydays to help offset unexpected or emergency expenses. They are often called cash advances or paycheck advances and are usually limited to around $1500.

In recent years bad credit payday loans have definitely been controversial. Critics have claimed that the lenders have targeted the poor and the young adults. They say these people don’t have any other options and don’t understand the importance of money. They even go so far as to call these lenders loan sharks because of the high interest they charge. Because this is an unsecured high risk loan lenders often charge 200 all the way up to 1000 percent interest. If you can you are much better off using credit cards instead of obtaining a payday loan because the interest charges usually don’t exceed 25 percent.

The lenders, rightly so, will point out that the good side of a payday loan is that even they charge an extremely high interest rate it’s still less expensive than late credit card payments or overdraft fees and bouncing checks. They also point out that the processing charges are much less than those for long term loans offered by national banks.

Another good thing is they don’t include your credit score in the criteria when you apply for a bad credit payday loan. The criteria for getting a loan are age, job and salary, and a checking account. This means that you can obtain a loan regardless of your past credit issues. You just provide a few details about yourself and submit an application. It usually takes less than 10 minutes to fill out. The money is deposited to your account within hours. As you can see it’s all very easy and convenient.

If you think that the benefits of a payday loan outweigh the negatives then you should definitely take advantage of them. The decision is entirely yours. Just remember a bad credit payday loan should only be used to obtain fast cash for emergencies. It is not intended to be used every day. When you need money fast and you aren’t able to obtain it from anywhere else this is probably the best solution to the problem you can find.

It’s better still if you save a little money every month to cover unexpected expenses. You should know how to handle all your expenses even the urgent ones. If you have savings then you won’t have to borrow money

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