Payday loans can be thought of as a good risk management strategy. Let's compare the benefits of payday loans to the potential negatives of payday loans.
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Benefits of payday loans:
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1) Immediate Cash. The benefit of payday loans is that the cash from the lenders is available immediately. Of course, your payday loans application has to be approved before the cash is wired to your bank account, but once your payday loans application is approved the cash is wired within hours of the approval.
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2) Quick Application process. The next benefit of payday loans is that payday loans applications are quick and simple. Payday loans applications don't require more than a few bits of information. The waiting time on payday loans applications to be processed by lenders is literally a waiting time of business hours rather than business days.
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3) No Credit Check. One reason why payday loans applications are so quick to process is that there is no credit check and credit approval by any third-party. Lenders of payday loans only want to know that you are employed, how much you are making or intend to make on your next payday check, and that you have a bank account with the capability of accepting a wire transfer. Lenders of payday loans don't care if you have the worst credit ever. Lenders don't ever look at your credit. Lenders look at your ability to pay off the payday loans within thirty days.
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Perceived negatives about payday loans:
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1) High APR. Payday loans do have a high APR percentage. There are state laws which vary per state on what APR percentages can be charged by lenders. However, when looked at with the understanding that payday loans are to be paid off within thirty days, the APR percentage rate is only there to give pay the lenders for their quick cash services. Payday loans are meant to be paid off within thirty days. If you can't pay off payday loans within a short time, don't get your cash advance from payday loans lenders because you will have that negative effect of the APR which can add up quickly. However, if you are risk managing and consider the fees of doing payday loans compared to the fees that add up from a financial crisis in having a check bounce and a bank overdraft fee as well as fees from the company you paid with the check that bounced, then you're looking at less fees in just getting a cash advance or payday loans, and paying back the amount within the agreed time. That way you are risk managing so that you by-pass the fees from a financial mistake.
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2) Payday loans to pay off payday loans. Now this can happen if you just do your finances from the seat of your pants and don't budget or think ahead. If you get payday loans and then never plan how you will pay them back with your next payday check as agreed and at the same time pay your regular expenses with your payday check, then you are going to get into a mess of getting another payday loans to pay off your last payday loans. Just plan ahead and this won't happen.
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2) Quick Application process. The next benefit of payday loans is that payday loans applications are quick and simple. Payday loans applications don't require more than a few bits of information. The.... Learn more at Payday Loans Houston and payday loan
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