A Quick Introduction to Payday Loans – Our Guide

October 03, 2019

Payday loans are often seen as a last resort by borrowers and financial experts for various reasons. These include having salaries becoming chopped down by a significant margin and the like. They are regarded as one of the most convenient options to seek out due to a quick loan approval process and same-day cash deposit. However, payday loans can still prove to be difficult to manage for some people. Contrary to its negative image, however, payday loans are effective for overcoming financial challenges as long as you apply for one with the right amount of knowledge. 

Aside from short approval periods and high borrowing limits, another notable feature that payday loans have is that it is impossible to have more than one at a time. The limitation was set because payday loans must be repaid to regain eligibility to be granted another cash advance. 

Payday loans in a nutshell

While payday loans are best known for their convenience, online lending has made them much easier to handle and process. In terms of qualification, an online payday loan is much simpler to qualify for compared to other types of online loans. Through online payday loans, interested applicants can opt for a cash advance that is granted as quickly as possible without needing to apply at a local bank. Additionally, it is worth noting that opting for an online payday loan is also more convenient because of enhanced customer service. Even cases of having a payday advance denied can be resolved right away. 

Generally speaking, online payday loans come with a wide range of benefits that borrowers can enjoy. To better gauge whether or not you should go for an online payday loan, below are a few pros and cons to consider before you file an application.

The Pros Of Online Payday Loans

Online payday loans are the best option to get during emergency situations, such as medical bills and the like. These are the main benefits to consider when going for an online payday loan:

  • The application process is simplified
  • Loan amounts are immediately deposited
  • Compared to conventional loans, there are fewer requirements
  • Repayment is much easier through shorter payback periods ranging from two weeks to a few months

The Cons of Online Payday Loans

No loan option is ever going to be perfect, and online payday loans are no exception. Although they may come with a wide variety of benefits and advantages, online payday loans still have their own flaws that should be considered during the application process. When determining whether or not to go for an online payday loan, take these disadvantages into consideration:

  • The interest rates on online payday loans are generally higher than other options in the market, resulting in a greater urgency to pay a loan back to avoid astronomically-high charges. 
  • Just like their offline counterpart, online payday loans can still create a dent in your monthly income, making them suitable only for short-term needs that can be paid off right away. 

An online payday loan is a modern solution that is continuously developed and refined to cater to various financial problems in the best way possible. While it may come with its own set of pros and cons, the benefits of an online payday loan outweigh the risks, as long as everything is planned and accounted for.

If you’re in South Africa and want to take out a payday loan at affordable rates, feel free to contact Hoopla Loans today to see what we can do for you!