Payday loans have many names -- cash advances, signature loans and paycheck loans, etc. Payday lenders provide quick and easy short-term cash to those who need money immediately. That's the big reason why they're so popular.
However, payday loans come at exorbitant costs. This can -- and often does -- lead borrowers into a downward spiral of rapidly escalating debt. Let's look at the issue from various angles to get a complete picture.
First, the pluses. Here's why cash advances may hold enormous appeal for you.
You can have bad credit and still qualify for a payday loan. In most cases, no credit check is conducted.
The process is fast -- it takes as little as 20 minutes to complete. You can even find lenders who target approvals in 30 seconds!
There are no upfront costs -- so the buy-now-pay-later mentality can find full expression. You can apply in person at a local outlet, over the phone or over the Internet. You get funds deposited into your bank account in 24 hours.
Compared to some other sources for cash, payday loans are discreet -- no one else needs to know about it.
The transactions are secure -- your financial information remains private.
If you're faced with an emergency -- say, unexpected medical bills -- your only consideration might be to get money now. The speed and convenience of a cash advance comes in handy here.
"Should You Ever Take a Payday Loan?" »