Online payday loans are there to assist us if our paycheck is not enough to make us survive from one week to another. They are relatively short term loans that span a period of 7 days or 14 days, depending to the online payday loan company that you availed of. Here are some of the advantages and disadvantages of payday loans online.
Advantages
1. Online payday loans are usually availed when you need money ASAP. It is usually availed if you need to pay necessary bills like gas, water and electricity so an advantage of an online payday loan is its fast processing speed. It usually takes as fast as 3 hours for the application to be processed and for the money to be wired to you.
2. Credit check is not done for payday loans. So whether you have a bad credit standing or a pristine one, you get the same treatment.
Disadvantages
1. The interest rates are staggeringly high. Annual percentage rates range from 500% to 1000% which makes it seem that online payday loan service companies are loan sharks in themselves.
2. There is the tendency to slip into a slippery slope of living off on one payday loan to another. The cycle can go on and on.
3. Like any internet business, online payday loans are peppered with scammers that will siphon money off you or steal your identity so you have to be vigilant in choosing a reputable online payday loan company to service you.
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