Fast payday loans are short term unsecured cash advances to meet the pressing requirements for cash especially during month ends. Because of the speed and ease of obtaining payday loans they are known by different names like fast payday loans, guaranteed payday loans, emergency payday loans, easy payday loans etc. These loans have become widely sought nowadays to meet any urgent short-term requirement for money.
Fast Payday Loans – Is It A Boon?
- These loans have minimal eligibility requirements. They are available to all US citizens above 18 years of age, who have regular employment and an active bank account.
- Application of the loan is online and no credentials have to be submitted. Verification is entirely based on the information provided by the borrower. There are no credit checks done as in other loans. Therefore, the credit history of the borrower is not an issue and people with adverse credit history can also apply for the loan. They can use this loan to improve their credit worthiness also. They can also reapply for the loan after they pay off the first one.
- Once applied the money is directly credited into the borrowers account within 24 hours. Repayment can also be arranged to be directly debited form the borrowers account. If the borrower does not have money to repay the loan on the due date there are options to roll over the loan for another term for a small fee.
- The entire process of application, verification, and repayment of the loan is automated. This reduces the paper work of the borrower and also speeds up the entire loan system.
Fast Payday Loans – Is It A Bane?
Various advantages of applying for fast payday loans are mentioned above. Though, the payday loans appear to be most lucrative option to meet urgent cash requirements, a word of caution is necessary. By availing loans till payday the borrowers generally choose convenience over cost. This is because payday loans charge more interest than any other type of loan. This is because the payday loans are short-term unsecured loans. Further, if the loans are rolled over for another term then additional fee is charged over and above the interest. Here the borrowers must note that the payday loan lending company thrive on these high interest rates and rolling over fee. Further easy availability of loans will tempt people to spend more. They will then get caught in the debt trap if they are not self disciplined.
In spite of all these disadvantages it cannot be denied that fast payday loan is the most ideal form of loan to meet emergency cash requirements. That is because from no where can a borrower get money so quickly to meet his urgent needs.