Pros and Cons of Quick Loans
Quick loans are popular for many people who need the money so they can pay off bills. These are short term answers to problems and you will often need to repay the money by the end of the month or your next payday. There are many pros and cons to quick loans and you should consider them before you apply.
The main benefit is that you can get the money within an hour of being approved for the quick loans. This will mean that you can pay that nagging bill right then. However, this will all depend on the company that you go for, the time and day of the week that you apply and also whether your bank will accept the quick transfer of money.
There are some quick loans providers that will ask you to fax the documents over, which can slow down the process. If you do not have access to a fax machine, you should look for companies that are able to do all of the identity checks themselves; this is now possible and there are a number of companies that will do it.
There are no credit required with applications for quick loans, which can benefit those with bad credit. The loans are made available to anybody but there are some restrictions in place. These restrictions will differ between companies but it usually involves the amount of money that you earn each month and the type of employment that you are in. The lenders are putting themselves under a lot of risk for not doing the credit checks so they need to ensure that they get the money back some way.
The interest rates are usually extremely high with quick loans too. This is simply due to the fact that the lenders are putting themselves under the risks. However, these high interest rates are usually only put in place if you go over the 31 days that you have to pay the money back. There are usually set fees or rates applicable to the first 31 days, which makes the quick loans cheaper than opting for the overdraft fees.
Quick loans could help your credit rating if it is a bad one. If you borrow money and pay it back on time, you can show that you are responsible with money and a low risk. However, they can also have the opposite affect if you decide that you are not going to pay back the money on time. You will need to look into your budgeting and make sure that you can afford the money that you owe.
You will only be able to borrow a small amount of money with quick loans. You are expected to pay the money back at the end of the month so you will only be able to borrow money that you can realistically afford. This is part of the restrictions that are put in place for borrowing the money. The amount you borrow will be in a ratio with the amount that you earn each month and your other outgoings.