Payday loans provide you with hard cash in a short span of time. Payday loans are suitable for someone going through financial crisis. In the event an individual goes bankrupt and is unable to meet the high cost of his utility and medical bills, payday loans can be very helpful. Payday Loans are given by private lenders or lending institutions in the form of cash advances on Payroll cheques.
Advantages Of Payday Loans
Payday loan facilitates UK citizens to get loans up to £750.00 in cash within a day’s notice. Applicants with bad credit history, adverse credit, CCJ’s, bankruptcy and defaults also stand an equal chance of obtaining Payday Loan coverage. An applicant should be at least eighteen years of age to apply for Payday Loans in the UK. One, however, needs to prove that he is currently employed when applying for such loans.
Whether the expense involves going for a dream vacation, repairing a car or perhaps making home renovations, payday loans provide an individual with the cash he is looking for. In order to do so, he must have a current and active bank account. Payday Loans come into the scenario when individuals are facing the most challenging financial crisis of life. Payday loans act as a fixing tool to repair virtually any inevitable expense in the life of an individual.
Sometimes, you have to pay utility bills by a certain date. Not having cash may mean you not being able to pay the bill on time. The utility can be disconnected leaving you with no way to get a reconnection quickly. A payday loan may help you stay out of such a situation. Unanticipated house repairs may pose problems as well and a payday loan helps avoid an unwanted situation.
Disadvantages Of Payday Loans
Payday Loans are available at high interest rates and only UK residents can avail this opportunity. One should keep in mind that he should repay the amount of loan before the expiry of the repayment period. Failing to do so could result in repaying the loan amount with significantly higher interest rates.
It is important to realize you are the one responsible for the repayment of a payday loan in full. Not doing so can affect your credit standing negatively. Once your credit rating is affected, it is difficult to apply for loans and credit cards.
The loans and credit cards available for people with bad credit have lower limits and high rates. If your credit is affected adversely, you have to work hard to rectify the situation. It may even include consultations with a loan specialist. For these reasons, understanding your financial constraints is very important when it comes to choosing the type and amount of a payday loan.
Original from: http://www.hitcashnow.com/blog/advantages-and-disadvantages-of-payday-loans/