If you are in need of urgent money for certain emergency needs then you can easily get same day cash loans online, which will be available to you within 24 hours.
However, before you apply for such easy payday loans, it is essential that you must know how this kind of loan really works. Often few people may get into debt trap, if they are not disciplined enough about their money management.
It is also important to know how much your loan amount will really cost you as this kind of loan will also need certain amount of application processing fees that may vary from lender to lender.
Often there are few people who may take such loan in order to repair their car and before they completely repay it back, they may again apply for another such loan and as a result they may totally mismanage their finance.
Important things to know about your payday loan terms
- The loan amount that you owe will also attract certain interest
- If the lender cannot realize his due amount from your account, then he may contact your employer.
- If they fail to realize your amount then they may contact collection agency, and that can reflect in your credit report and lower your credit score too.
- Lender as well as collection agency may sue you too.
- Lender or collection agency may also seize your property.
You must remember all these and behave responsibly after taking such loan.
Few disadvantages of payday loans
Though you may find such cash loan very easy to get and you can easily meet your immediate finance problem there are few drawbacks too, which you must understand.
If you are careful from the beginning then you will not be penalized and this loan can be a boon for you.
- High interest rates
Usually interest rates of such loan can be quite high as compared to any other kind of loan, particularly if you do not clear your loan quickly, your debt will continue to rise with time.
- No grace periods
These cash advances will not come with any grace period that typically you may find with any credit card payments. So, moment your loan amount arrives in your account, your interest payment calculation starts from that day.
- Additional fees
Based on the lender you have chosen, they will charge their processing fees, and few banks may also charge you fee for ATM.
- Low borrowing limits
For number of cases, your cash advance limits are significantly less as compared to your purchases.