What are the advantages of a cash day advance loan ?
- A cash day advance loan is a fast way to get cash.
- If you have a poor credit rating, it may be easier to get a cash day advance loan than another type of credit.
- Payday lenders are usually in easy-to-access locations, and offer convenient hours of operation.
What are the disadvantages of a cash day advance loan ?
- A cash day advance loan is very expensive compared to other types of loans.
- To obtain a cash day advance loan, you must provide a lot of personal information.
- The interest charged on a cash day advance loan is much higher than the interest charged on other types of loans or credit cards.
- The many fees can add up quickly.
- A cash day advance loan will not improve your credit rating if you make your payments on time. However, if you don’t pay back the loan and it goes to collection, this could bring down your credit rating.
Tips to consider before you apply for a cash day advance loan, ask yourself :
- Have I explored a cheaper alternative, such as a line of credit, a cash advance on a credit card or overdraft protection on my bank account?
- Could I ask friends or family for help instead?
- Do I understand the fees, interest, and charges that apply to the cash day advance loan if I pay it back on time?
- Do I understand the cheapest way to repay the loan?
- Do I understand the cost of making a late payment?
- Do I understand the negative impact a cash day advance loan could have on my credit rating?
- Have I read and do I understand the cash day advance loan agreement?
In conclusion, always make sure you know your rights before you embark on a cash day advance loan.
