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Payday Loans: Advantages and Disadvantages

Posted in on 12-17-16

Payday Loans: Advantages and Disadvantages

Payday loans Chicago has turned to be the common resource for emergency funds. If you are thinking of applying for a short-term personal loan, it is better to gain some knowledge before applying for it. Take a look at some of advantages and disadvantages that it has to offer to the borrower.

The Advantages of Taking Payday Loans

A payday loan is a source of quick cash and proves to be really helpful in case of a financial emergency. You had an accident and have to pay an emergency medical bill then the payday loan will be able to offer you the money that you require.

Payday loan Chicago does not require a credit report. Your payday loan eligibility will not be affected if your credit rating is damaged or you haven’t established one yet. Payday loans help you to save a substantial amount of money. If you cover all your bills with short term loans then you will be able to avoid charges of bank overdrafts, bounced check, and credit card fees.

Payday loans also help in protecting the credit rating. If you take these short-term loans to help you meet a small financial obligation, you will be able to avoid a negative mark against your credit limit.

The Disadvantages of Taking Payday Loans

Payday loans Illinois are short-term loans. Hence, if you need a loan for a longer time then this kind of loan will not be useful.

Payday loans involve interest and fees payment. The charges that are associated with it are much higher than a regular bank loan. If you are unable to pay the full money within the designated time then the fees might become double.

To be eligible for this kind of loan, you need to have a full-time job. This means you will not get payday loans benefit if you are unemployed or have a part-time job.

For payday loans, you need to have a current bank account. You may want to deal only with cash but the payday loan lender does not prefer doing so.