Payday loans are short term loans for small amounts of money that require no collateral. These loans tend to have very high interest rates and a very short repayment window. You should only take a payday loan if you need money very fast and very desperately.
Who lends you the money?
There are a lot of online and brick and mortar payday lenders like Cashfloat. Being a booming market, this section of micro financing is attracting many different types of people. A lot of big financing companies have now diversified to include a payday loans division. There are also individual lenders and companies that are set up specifically for payday loans. It is a good practice on your part to borrow from a company with ties to a big financing firm because they are likely to have better lending habits and fair interest rates. These companies usually have long standing reputations and they would deal with you fairly in order to preserve that reputation.
Positives of payday loans
There are a lot of positives to payday loans but only if you borrow from reputable lenders like Cashfloat.
- Payday loans supply you money in an emergency situation such as when your car needs repair or when you have to pay bills and you don’t have the money for it.
- The application process for these loans is very simple and fast. Usually it would take only about half hour to complete everything.
- Your credit score has no bearing on your eligibility. Even if your credit score is way low, you will still get a loan quite easily.
- You are supposed to repay the money along with the lender’s fee by your next payday, but if you find it hard to do so then you have the option to rollover the debt to the next payday.
All in all payday loans are a good option. However, you need to be careful about repayment. Only take a loan if you are confident about your ability to pay it back within the allotted time, or you will get involved in a vicious debt trap that you will find very hard to get out of.