Choosing payday loan lenders is vastly popular for millions around the country today. Right now, in the UK, there are millions looking for a payday loan and it’s easy to see why that is. However, there are many who say they aren’t sure if a payday loan is the most suitable option for them. It’s difficult to know whether or not payday loans are suitable as they don’t suit everyone. However, what are the pros and cons of taking out a payday loan?
Pro – They’re Easier to Get Approved
One of the biggest and best pros of using payday loans has to be the fact that they are far easier to be approved for. Getting fast approval is one thing but getting a loan almost everyone qualifies for can be a real weight off the shoulders of many. It’s fantastic to see just how possible it can be to get a loan without having to jump through a lot of hoops to be made eligible. Continue reading…
Con – They Need to Be Paid within the Month
One of the biggest drawbacks to working with a payday loan is that there are shorter repayment terms. In most cases, people take out the loan with hopes to pay it back by the end of the month. That’s not always an unrealistic payment term but it’s not always a reachable goal either for many individuals which means more costs to the borrower. Shorter repayment times can put a lot of people into a bind even when dealing with the best payday loan lenders.
Pro – You Can Roll Over the Loan if You’re Struggling to Make Repayments
A great advantage for payday loans has to be the fact that if you are struggling one month to make the payment, the loan can be rolled over until the next month’s payday. There will be an additional fee on that and interest will be added on but it gives you some breathing space which can be useful. A lot of lenders don’t offer that breathing space so it’s a nice addition to say the least.
Con – Higher Interest Rates
Another major issue to deal with has to be interest. Higher interest is usually found with a payday loan. The best payday loan lenders can also offer higher interest rates simply because the loan is being repaid back at a quicker duration. These are supposed to be short term loans and that means the lender won’t receive as much interest over the duration of the loan which is why interest can be higher. It’s a problem most borrowers don’t realise.
Understand the Drawbacks and Rewards of Payday Loans
To be honest, a payday loan can be a great option for many people but they don’t work for every individual and they do come with a few drawbacks. However, if you understand what the rewards are as well as the risks you might be able to get a more appropriate loan. Knowing the risks and rewards can enable you to make a sound decision either way. Good payday loan lenders are also very important to find to help with getting a better loan. For more details you can visit www.loanpig.co.uk/payday-loans