Online advance payday cash loan can be the helping hand you are looking for when you need money urgently. There must be something good about these loans. Why else would they be so popular? Here's a look at what makes them alarming at times.
What Is Online Advance Payday Cash Loan?
Online payday loan lasts till your next salary day and is usually for an amount not more than $1500. These loans are meant to help people facing a financial crisis. If you have less time and more urgency, instant cash loans is the answer.
What Are The Benefits?
The biggest advantage is that these loans are approved within a few hours. No bank or lending institution can match such quick approvals. Convenience is another forte of the 24-hour payday loan. For people, who do not have the time to fax supporting documents for their application, there is the no faxing loan. These loans comes as a respite for people needing cash urgently.
Another reason why these cash advances are so popular is that the lending companies do not bother with making credit checks on the applicant. This makes the approval very quick. In addition, it allows people with bad credit to seek online cash loan. The eligibility conditions are also very simple. Any adult American with a steady job and a bank account can apply.
What Are The Risks Involved?
Even though the no faxing payday loan is very popular, there are risks associated with it. These loans come with a high fee attached to it. Most companies charge $15 - $30 per $100 of the amount lent. Moreover, if you continue to renew the borrowed amount for 3 terms, you might end up paying more than $60 per $100 of the amount you have borrowed. Such high fees cannot be paid easily. Most people continue to renew their loans again and again. Finally, when the burden of the borrowed amount becomes too heavy, they resort to another amount to clear the previous one!
Cash advance is a useful thing. But like any other useful thing, it should also be used in moderation. No sense in taking the loan for trivial expenses and falling prey to a debt trap. A little prudence can go a long way in maintaining your financial solvency.