If you need cash quick, I would recommend that you go to your mother or the bank for a quick loan. However, there are other options that you can try to pursue, and the best option might be a payday loan. I am not saying that a payday loan is something that you want to have to get, nor do I think that they are really a great option, but it is an option. As with any option, there are some benefits to it, so here they are for you.
The first benefit is that it is a form of credit that you are able to have when you might not have any other form of credit. It might not be the ideal situation for you, but if you need money, you need money. The big thing is to read the fine print and be ready to pay a lot of interest when you are trying to get this loan. Desperate times do call for desperate measures, so at least you have it open to you.
Payday loans do require that you have some sort of income coming in soon because of the terms of the loan. Most payday loans are about two weeks long. You get money by applying for a quick loan, and then you pay that loan back when you get paid. The good thing is that some people getting a payday loan will have jobs or some other source of income in the near future.
If you don’t have the money, you probably didn’t have the credit to get a loan elsewhere in the first place, so are you really hurting your credit any further? Be wary of the companies coming after you with collection letters and calls, but a payday loan isn’t exactly the same thing as getting a loan from the bank. On the other hand, you can always “flip” the loan, or apply for new ones giving yourself a consistently early payday.
Since a payday loan is a two week loan, you can actually repair your credit a little quicker. If you are able to repay your payday loans, you might be able to raise your credit score a little bit. Maybe you will be able to actually get a bank loan in the future so that you don’t have to worry about the ridiculous rates that can be as high as 60 percent or more.
Are payday loans risky? Yes, they are a huge risk to both the lender and the borrower. If you don’t pay back the loan, the interest is going to compound quite rapidly. Your credit could sink even lower, and you might risk having trouble even getting a payday loan if you don’t have proof of any income coming in soon.