Payday loans are small short term loans designed for the salaried borrowers of UK who are in need of instant cash to meet urgent cash crunch. Applying for payday loans has become very simple and fast with the introduction of online application procedure. However, it is important that you understand the various pros and cons of payday loans before applying.
Pros of payday loans
- Payday loans allow you to get an amount up to £1,500.
- No pledging of collateral required for approval.
- You can get approval for payday loans within 24 hours of your application.
- You can apply for payday loans even if you are a bad creditor.
- To apply for payday loans you just need to have an active checking account and be currently employed.
- There is no restriction on how you make use of the payday loans.
- Payday loans do not involve any credit check and lengthy paperwork.
- After approval, the borrowed amount gets directly deposited into your bank account.
Cons of payday loans
- The maximum allowable limit for payday loans is very less.
- Since payday loans are collateral free loans, failing to repay the loan in time can adversely affect your credit status.
- Absence of collateral makes the interest rates of payday loans high.
- You just get 14 to 30 days to make repayments.
- You cannot rely on payday loans if you need large amount as loan.
