Interested in payday loans in Springfield, but have doubts whether they are good for you? Payday loans have gotten a negative reputation, being considered as one of the most harmful actions an individual can do to improve their finances.
But are they really that bad? Maybe, it’s better to opt for installment loans? Or use a cash advance from your bank?
We’re going to answer all these questions. We’ll explain the actual advantages and disadvantages.
This will help you make a better decision before applying for any financial solution.
Springfield Payday Loans with Direct Lenders
When it comes to loans in Springfield, let’s start from the very beginning. What are? Why can they be helpful for Ohio residents?
Payday loans are loans that allow individuals to borrow small amounts of money, usually, something between $700 to $1000 before a person gets their paycheck from their jobs. It’s relatively easy to take one of these loans.
Financial companies, including direct lenders, usually make decisions really fast. However, they typically have high rates and sometimes extra fees are applicable.
Stick with us to find out more about the advantages and disadvantages.
The Benefits with Bad Credit
Despite being demonized in society, payday loans can be really helpful in particular situations when you need cash for a short period of time and have a stable job. Here are some of their pros.
They are Perfect for Emergencies
Life is unpredictable and emergencies just happen. With that in mind, it’s cool to remember that you potentially can get money without waiting for months. In most cases, you can complete the whole process online.
High Approval Rates with No Credit Check
When it comes to installment loans from traditional banks, it can be really hard to get any of them. They check your credit score, ask for additional docs and then decline your application without explanation.
Payday loans are a solution for almost everyone, even with bad credit. Some of these loans are available even with no credit check.
One cool feature is that you don’t have to borrow the maximum sum. Most lenders have a broad array of options so there is no need to take $1000 while you need just $200.
The Cons of Quick Cash
Although payday loans have some benefits for consumers, you should be careful with them. These loans might provide you with fast cash, but there is a huge risk to get stung with huge fees.
Here are some of the most crucial disadvantages of payday advances.
Huge Interest Rates
Lenders need to earn something by providing their service. If they didn’t apply high interest rates, their activity won’t be profitable.
Many people don’t repay payday loan and this also adds to the costs. As a result, an individual who takes a payday loan has to deal with incredibly huge interest rates.
They can act like quicksand
Many customers have problems with repaying the loan in the period that is required. When it happens, they have no choice but to borrow more or pay additional fees to prolong the loan term, getting them deeper and deeper into financial problems.
They are too easy to get
This sounds weird, but this feature could be considered a disadvantage. Potential customers get approved too fast and can’t change their minds during the process.
Payday loans in Springfield could be really tempting, particularly to those without savings and less-than-stellar credit scores.
At the same time, it’s essential to bear in mind their cons before applying.
Info about city here https://springfieldohio.gov/
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Representative Example: Loan Amount $1,000, Interest Rate 24%, Loan Term 12 Months, Fee 3%, Fee Cost $30, Repayment $94.56, APR 29.82%, Total Payments $1,134.72, Total Costs $164.72.
CashSmartOhio.com is not a lender and does not provide short term or online personal loans but refers consumers to the lenders who may provide such loans. CashSmartOhio.com is unable to supply you with an exact APR (Annual Percentage Rate) that you will be charged for a loan. APRs depend on multiple factors, including the lender’s requirements and offers, your credit worthiness, your state of residence, and the type and term of the loan you request.