The pros and cons of an online payday loan

Payday loans have recently received a lot of bad press. Some of the criticism is justifiable but much of it is not. Here we take a look at some of the pros and cons of an online payday loan.

Pros:

  • Available 24 hours a day, 7 days a week 365 days a year.
  • It is quick and easy application process.
  • No paperwork required.
  • Can apply from the privacy and comfort of your own home.
  • Very fast decision time.
  • If approved, funds are deposited into your bank account quickly (often in under an hour).
  • Flexible, you can choose how much you want to borrow and for how long.
  • You can apply from anywhere as long as you have an internet connection.
  • Unsecured. You do not have to provide any assets as security.
  • You do not need a perfectly clean credit profile to be approved.

Cons:

  • The interest rate is higher than a traditional “secured” bank loan.
  • Costs and interest can accumulate quickly if you do not pay back your loan on time.

In summary, the pros far outweigh the cons. If you obtain a loan from one of the more established online payday loan providers (listed on this website) you will always be able to see exactly how much you will need to pay back. Should you fail to pay back your payday loan on time, naturally fees and interest will accumulate beyond your initial quotation. When you take out a payday loan, you must carefully consider if you will have sufficient money on the date you have selected as your repayment date.