Pros and Cons of Quick Payday Loans

Taking out a loan is tedious. All that paperwork, the wait for approval, the documents, the queues and the perpetual fear of bad credit score… the stress of it all! A quick payday loan, by contrast seems relatively easy and attractive. A quick payday loan is so easy to get, there is no hassles of paperwork, or prospects of bad credit score with the banks, and true to their name, they are really quick. The only thing to keep in mind is that the loan needs to be paid back as soon as you receive your paycheck.

There are many of us who swear by a Quick Payday Loan, and there are many of us who swear at it. So, let’s examine why.

We need to understand how to get a Quick Payday Loan. The first thing to do is to locate one of the agencies that help provide these loans. There is a contract to sign and then you get the loan for the desired amount within 24hrs. So far, sounds great. However, the bad side of it begins to surface if you fail to repay the loan within stipulated time. You may find yourself in a financial nightmare as the interest rates are quite high and you run the risk of sinking in financial quicksand. Take out a Quick Payday Loan, only if you are 100% sure to pay it back in time.

You must give due attention to finding the right agency. Steer clear of all the fly-by-nights and shady operations that have mushroomed recently. There are only a handful of truly reliable agencies out there and you need to find one of them. Filter your options well, or you may find yourself in the clutches of a scam agency where you either may never get your money back or find yourself paying back an amount far more than originally borrowed.

Please scrutinize your contract minutely before signing on anything. Read the fine print properly. In case you find a segment you are not comfortable with, refrain from signing the contract. Don’t let your need for money interfere with your choices. In such a scenario, find another agency that agrees with you. After all, it is money that we are talking about here!

Quick Loans are really great at helping us tide over a strained financial week or two before the payday. Some may even go as far as to claim it to be a godsend… depending upon their need. There’s no paper work or a tedious (and for some quite nerve wracking) waiting period involved. Cash advance loans are generally risky and Quick Payday loans are especially more so.

There is not much to fear here. All you need to remember is that Quick payday loans need to be paid back as soon as the paycheck comes in. So, don’t get tempted by all that you might dream of buying, don’t bite more than you can chew. Quick Payday loans should only be taken out if there is some urgent need for cash or to fulfill some really important wish. So, borrow wisely.

Curtail Extra Expenditure to Prevent the Necessity for a PayDay Loan

While planning a budget, all those ‘little’ expenditures must be taken into account. It could be something as small as a frappe, or a drink at the soda fountain, or some other little ‘pick-me-up’. They seem trivial but they add hundreds or even thousands of dollars to our annual expenditure. Who would want to take a payday loan to tide over this month, as a result of indulging in too many trivial expenses? These little trivialities do cause a significant dent in our financial status. Have you ever really considered all of those little places where you spent your money and then wondered how you ended up broke by month’s end?

First, collect all of the little receipts stuffed carelessly in your purse, or stashed in the glove compartment of your car. Make a mental list and tally for the items you bought, including those items too for which you didn’t find receipts for. Some common items can be:



-Occasional Fast Food Item

-Candy Bar


-Aerated Drinks

And so on. You get the drift, we hope. The kids might have bought some games through your cellphone that’s not password by a password, you might have indulged in some pity-purchase (you know, some little trinket that will make you feel better about a day gone wrong). Beware of cable-services that offer some new movies for a small fee. There just might be piles of purchases littered throughout the month that need to be accounted for. Add up the numbers and you will get an eye-popping sum and a revelation. “So that’s where my money went!”

Children, adorable as they are, cost a lot. Their upkeep is exhausting and they are in a constant lookout for a handout. Whether to fit in with the crowd, lead the crowd…its exhausting nevertheless. “Small things add up” philosophy doesn’t seem to even begin to fit here. What’s small about the latest Nike shoes or the Iphone or Xbox etc? The incessant demands are made almost on a daily basis. No small wallet can ever support it. You need to have some serious income stream to fulfill these.  Movies, snacks, school dances…ad infinitum. They all add up. Big time!!

Is there a ‘slush fund’ to cover these expenses? Your answer is, umm… no not really. But then these little unplanned expenditures need to be paid for. We do try to stretch the already thin purse strings as far as possible… but they snap before long. You never even got the chance to start building towards a retirement fund. The nest egg went into paying for the little expenses. You work consistently earning money, yet there is no one more broke than you. The only way out then, is a pre-payday loan. We’ve all been there. We all want a way out of this financial situation.

First you really need to plan your purchases. Curb all the impulsive buying. Not that you should live a sparse life of self-denial. Simply allocate a little budget for impulsiveness and stick to it. Parents, learn to say “NO” to your kids. Teach them the importance of budgeting. Tell them that their expenditure must fit in the little budget you gave them. Teenagers will learn and respond quicker. It’s a win-win situation for both of you. It isn’t possible for any of us to do all that we want to do! A little restraint with these ‘little’ expenses makes a big difference.

What you must Consider before seeking a Cash Advance

You tried your best to stretch your paycheck so your financial needs could be met. You failed. What do you do now? Seeking loan the traditional way will not help if you need money immediately. The amount you require is very small and not worth the wait or the paperwork. Tapping your friends for some money is embarrassing. Therefore, taking out a cash advance loan seems like a no brainer. But read before you borrow.

Don’t judge cash advance loans on the quality of advertisements you encounter while on an online sojourn. The ads might overwhelm innocent surfers and trick them into believing all cash advances to be the same. Cash advance loans are of many different varieties and you obviously need to be better informed before borrowing. Let’s start (without getting inundated by information overload).

Are you borrowing from a lending institution of impeachable reputation? A quick look at the reviews and history page will give you enough insight into the reputation of the lending agency you are presently considering. If your searches are only leading you to bad reviews, or little information, you shouldn’t borrow from that agency. There will be some bad reviews, that goes with the territory, but if there are more bad reviews than the good ones, think twice before proceeding.

So, how much will it cost you in the times to come? Account for all the fees, the APRs, and all that is mentioned in the fine print. That will be the actual cost of your cash advance loan. Question your agency shamelessly on the topic. Borrow only after you are satisfied with the answers you get.

Read the terms & conditions thoroughly. Are you able to make sense of them? It is pointless to sign an enigmatic and highly complex contract intending only for lawyers. Ask for a more simplified version before entering into any contractual agreements. Resolve any doubts you have about hidden fees or stipulations that might be neatly tucked away in some clause. Don’t sign until absolutely sure about the contract. The marketplace is flooded with scams and fly-by-nights interested only in making a quick buck. Don’t get duped.

Most cash advance loans don’t affect your credit score adversely, provided you pay them off within stipulated time. Also, ask your lending agency about how it reports to credit agencies and what effects a cash advance will have on your credit score.

Pay special attention to payoff policies. Give yourself a time limit that is feasible and realistic. Don’t over-promise. A failure to repay cash advance loan within time has serious repercussions. You may be charged a very high interest rate and the delay might adversely affect your credit score too. It may even lead to incurring extra costs that increase your original lending amount.

Whenever money is involved, we can’t help but be very careful. A lot of attention needs to be paid and we need to be 100% sure about what we are entering into. Regretting later will only show us in a bad light. So, just keep the above in mind and taking out a Cash Advance loan will be a breeze.