Cheap Payday Loans Can Make Short-Term Financial Sense
Cheap payday loans are a good,short-term solution for people who need money quickly to cover unexpected bills such as car repairs or to buy replacement white goods.
When you request online payday loans from our website, we will submit your application to our network of lenders and get you the cash you need fast. You'll know in seconds if you're approved and for how much.
what you need to know about cheap payday loans
There are a lot of myths around payday loans and especially around cheap payday loans. These range from loans being designed so they can never be paid off, to having extortionately high interest.
The truth of the matter is that payday loans operate in the same way as any other loan. A customer borrows a set amount of money, and agrees to repay it over a set amount of time. Defaulting on a loan may cause interest to accumulate and the amount of the debt to grow.
Payday loans are designed to be short-term. The amounts that can be borrowed are less than with traditional loans, mainly because the expectation is the loan will be repaid in entirety at the next pay day.
Interest rates are higher in percentage terms, but because the loans are over a short period of time the actual monetary amount of the interest is not normally excessive. The reason interest rates are higher is that pay day loan companies are businesses, and need to make a profit.
As the time period money is loaned over is so short the interest rates have to be higher, in order to cover the costs of administration and staffing.
the best time to borrow?
Money can be borrowed to cover a particularly expensive time of year, such as the holiday season. Loan amounts are kept deliberately low to ensure repayments can be met, and the whole process can be completed quickly and easily online.
Applying online cuts down on the amount of forms and paperwork which needs to be completed.
As with any type of loan, it is important that a borrower is sure they can meet the repayments before taking out the loan.
A loan company can perform a certain amount of checks, for example asking for proof of income such as pay slips, and proof of residence, but the responsibility for knowing whether repayments can be met sits with the borrower.
Due to the higher interest rates, this type of loan should only ever be used as a solution to short term financial problems, and not as a long term money management strategy.
Rudi is a credit analyst who writes articles about credit scores, building credit, and consolidating debt. His know-how on poor credit and credit unions make his input invaluable to our company. There is no credit score out there that Rudi can’t help with.