It pays to know the pros and cons of same day personal loans before applying for them. This way, you can make an informed decision. Many people who end up unable to pay their existing debts are due to the fact that they did not plan the repayment well. On the other hand, others who started out with very low interest end up paying more because their outstanding balance was not paid in full.
Need cash today?
One obvious advantage of applying for this type loan is the speedy release of the money that you need. In fact, you will find that the money has already been deposited to your bank account on the day that you have applied for the loan. This is beneficial when you need the cash today to pay school fees and meet other financial needs.
Another benefit of applying for same day loans is the ease of meeting its requirements. All you need is to do is fill out an application form and meet other needs like age and proof of monthly income. When you apply for the loan, the lender may also require you to present them post-dated checks for repayment. They will deposit this to their account every time your date due will come. This way, both parties (lender and borrower) will enjoy convenience in the collection and payment of the amount borrowed. These types of loans may also protect you from incurring another debt. Some lending institutions employ tracking devices to stop you from having multiple loans.
Borrow up to $3000
Same day cash loans have their set of flaws as well. Since these loans are usually paid on the next pay day or within a few months, only small amount of cash is usually offered. The amount may range from $500 to $1,500, in some cases up to $3000. Hence, you can never ask the assistance that you need when you are planning to apply for a loan to buy a car or build a house.
You must also take note of the offered interest rates to check if you are getting a good deal. Same day loans are known to have exorbitant fees. This is simply because such is an unsecured loan, meaning no collateral was provided. Hence, loan companies secure themselves by charging higher rates to clients of such a very risky business. Another disadvantage of such loan is its ever changing terms and conditions. They can be very complicated making the borrowers gets lost in the term used.
Avoid missing repayments
We know for a fact that applying for a loan may mean weeks and months of repayment. This can be very hard in a family that has insufficient income. This may even lead to application for another debt to pay off the existing loan due. Eventually you may find yourself in a situation where you can’t manage to pay the loan that you currently have. For this reason, deciding to apply for the loan can’t be done overnight. It must be made after one has done extensive research. This way, you will get most of the benefits that this loan has to offer.