Pros and Cons of Payday Loans

Today many people are finding it necessary to take out a cash advance payday loan to help them deal with emergencies that occur between paychecks. The economy has forced many people to live from one paycheck to the next and made it impossible for them to save money. If you find yourself in this predicament it may be comforting to know that you are not alone and there are ways to get the money you need when you need it. The answer may be in taking out a pay day cash advance loan.

Before you decide to take advantage of a payroll cash advance loan you should know as much as possible about them. There are both pros and cons associated with short term loans that you should be aware of in advance.


  • No credit check required
  • Easy application process
  • Approval time is fast and easy
  • All you need is a steady job and valid checking account
  • Your post-dated check will be the security for the lender
  • Easy payback method
  • It's easy to get the cash you need


  • The lending fee can range from ten to thirty dollars on every hundred borrowed
  • They are short-term loans that normally run from fourteen to thirty days
  • Extending the loan can be very costly
  • Outstanding loans are dealt with harshly

The reason the fees are high and extending the agreement is so costly is because payday loans are not meant to be taken out for long periods of time. They are designed to be used as a way to get the extra cash you need to make it until your next paycheck. They are not designed for vacations or buying items that you don't need. They are for responsible adults that are faced with an emergency that requires them to have cash now not in a few days or weeks. When used correctly they can be extremely beneficial.

Now that you have a better understanding of what a cash advance loan is and how they work, you can make an informed decision when you are trying to decide if it would be the right option for you. Payday advances do carry a higher interest rate than many other types of loans. However, having access to cash when you need it can be well worth the interest and fees charged when you are facing a financial emergency.

As long as you pay back the cash advance loan as agreed you won't have to worry about extra fees and charges being added to the loan. By comparing different cash advance lending companies you will be able to find the one that offers the lowest rates so you can find the best payday lender for your individual needs.