If you have a need for instant financial support, but you don't have any collateral or a good credit rating, then same day urgent cash loans may be right for you. These types of loans do not have the same limitations as traditional loans, and have been designed to be in your account the same day. While this sounds incredibly beneficial, there are also some significant drawbacks to this type of loan to be aware of. Let's take a look at both the advantages and the disadvantages of this kind of loan.
The Pros of Same Day Urgent Cash Loans
There are several clear advantages in taking out this type of loans:
1. You would be able to receive the money in your account the same day, within just a few hours of making your application.
2. You will not need to undergo a credit check, so these loans are available even for people with very poor credit rating.
3. The application criteria are very easy to meet, such as being over 18, a legal resident of this country, having an active bank account, and being employed.
4. You can take out a loan for whatever purpose you want, whether it is to pay an urgent bill or go on a vacation to the Caribbean.
5. It is a short term loan, so you will not be burdened with a huge debt for a long period of time.
The Cons of Same Day Urgent Cash Loans
Unfortunately, there are some significant disadvantages to these types of loans as well:
1. The interest rate is incredibly high. This is mitigated, however, by the fact that you should pay the loan back at your very next payday, so you don't actually pay that much in interest.
2. You can roll the loan over, which means that you only pay the interest at your next paycheck, and the principle plus another month's interest at your next payday. While this may sound like an advantage, because of the high interest rates, it means that you will be paying back more than you initially borrowed very quickly.
3. Lenders are generally very unforgiving about late or missed payments, and you could find yourself in a lot of financial trouble.
As you can see, there are pros and cons of using same day urgent cash loans. They offer a great solution for people who need a little bit of money in a hurry. The amount that is offered to you is linked to your salary, calculated on what your disposable income should be, meaning you can never borrow more than you should be able to repay. At the same time, these loans are expensive due to their very high interest rates, and you have to factor that in, in terms of making repayments. After all, once you pay back the principal and the interest, you may find yourself with very little money left to spend at the end of the month and you could get trapped in an unending cycle of borrowing and then paying, and then borrowing again and then paying.