Weighing The Advantages And Disadvantages Of A 24 Hour Cash Loan
24 hour cash loan is becoming increasingly popular, what with the pay cuts that have become a signature of the ongoing recession. This has led to the birth of many new companies, and ones offering impressive discounts and schemes, as well. But in the midst of the razzle-dazzle that is the notion of quick, easy money, it is important to consider both the advantages and disadvantages of these loans. Every coin has two sides. In this case, when your financial independence depends on that coin, it is important to carefully examine both of these sides.
Advantages:
- Simple Eligibility Criteria
- No Credit Check
- 24 Hours
- Direct Debit Facility
To be eligible for these loans you need to be 18 years and above, be a citizen of the United States, and have a valid bank account. Most importantly, you need to have a steady source of income, which can either be monthly or bi-monthly. Because you are not required to give any guarantee for a cash advance loan, the fact that you are employed is security enough that you will be able to pay the loan.
Some individuals have had long histories of debt and have consequently been blacklisted by all the major credit institutions. A 24 hour cash loan company is, therefore, their only option, as these companies don’t consider your credit ranking to sanction you the loan amount. However, this ranking is not ignored completely, but is used to determine the rate of interest you are charged. The better your credit history, the lower the interest rate.
The loan amount reaches your bank account within 24 hours of your application. If you make this early in the morning, you can even have the cash reach you on the same day itself. This does depend, however, on whether you have filled in the online form completely, and how honest you have been with your personal details.
Your repayment of the 24 hour cash loan amount can be made via direct debit from your bank account. You, thus, don’t need to get into the hassle of sending the loan company a check, or giving your bank instructions every month to make the payment. However, you do need to decide the installments in which you want to make this payment. Keeping in mind your monthly expenditure while doing this will help prevent you from defaulting on these payments.
Disadvantages:
- Only available in small amounts
- High Interest Rates
- Causes Higher Debt
Though 24 hour cash loan is prompt and easy to get, they are only for small amounts that usually vary from $500 to $1,500. It is possible in some cases to take more than one loan, but then this does become cumbersome in the long run. The more loans you take, the more monthly installments, interest rates, and deadline you will have to keep track off.
What they don’t tell you about these cash advance loans is that, because the company doesn’t ask you for any security, they charge you a very high interest rate. These are some of the highest interest rates in the market at any given point of time. However, for those who need the money urgently and have nowhere else to turn, any rate of interest is acceptable.
While trying to repay your cash advance loan you might find yourself short of cash, and sign up for another loan. Now this is the surest way to financial ruin. Most of these companies prey on the fact that you will be unable to pay the loan, and get into further debt. This is why you need to be very careful managing your monthly expenses, once you have signed up for a loan. The faster you repay the loan amount the better it will be.
With an equally weighed set of advantages and disadvantages it does become a difficult choice as to whether or not to sign up for a 24 hour cash loan. But then, for a person desperate for money, or one completely confident in his ability to improve his financial status tomorrow, these loans are a godsend.