If you need an instant loan, you have a lot of options. One of the easiest and fastest ways to get the money you need is through payday loans. You don’t even need to have a good credit score in order to qualify for this loan which is probably why a lot of people opt for these loans. You can get the loan amount even on the same day that you applied for the loan. But getting a payday loan for your financial needs is not always good. It could also hurt your finances more if you are not careful.
Payday loan is just a short-term solution for your financial needs. You need to repay the loan within 2 weeks or with your next paycheck and thus its term payday loans. It is not advisable to extend the loan because of its high interest rates. The average rate of payday loans is 450% APR. For just a two week loan, you may need to pay interest rate of about 15% to 25%. Aside from interests, there are also other fees involved. So before you take out this loan, make sure that you can repay the loan as soon as possible. If you fail to make timely payments, you will be charged late fees and other penalties.
Bad credit loans may be a good option when you are in desperate need of money, considering that most banks would reject your loan application if you have bad credit. But you still need to be extra careful. Create a budget and see if you have enough money to cover for the loan with your next paycheck. You should also not be too dependent on payday loans every time you need money for an emergency. Try your other options or better yet, try to save money for emergencies.