The Pros and Cons of Payday Express Loans

Being short on cash sometimes isn’t the end of the world since you can apply for payday express loans at direct lenders and thus bridge the gap until your pay date. These are short-term payday loans that can have repayment terms from 16 days to up to two years, and you can borrow sums from several hundred to several thousand.

Applying for these loans is simple, as most direct lenders operate online. After you apply, they use your information to do a brief credit check and decide on loan approval within 24 hours.

Once you’re approved for this quick cash payday loan, the direct lender will deposit a lump sum in your account. And you must repay it within the agreed repayment term in weekly, fortnightly, or monthly payments.

What this article covers:

Benefits of Express Payday Loans

The primary purpose of urgent payday loans is to help with sudden costs. But you’re not limited on how you’ll spend this money. So you can use it to settle debts, pay bills, go grocery shopping, or simply buy something nice.

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The simplicity of applying for payday loans in Australia is another benefit. You only have to provide basic information about yourself and your finances. And you can do that any time of the day. You don’t have to fax your documents since all required papers are gathered online. 

They can also help you get quick cash when you’re stuck with no money on weekends and it’s time for grocery shopping, for example. In that case, you can apply for Sunday payday loans and get cash in your bank account in less than one hour.

When Payday Loans Aren’t a Good Idea

Getting cash loans in minutes is convenient and can serve for good when minor expenses pop up. But these small payday loans might not always be a perfect solution. 

Payday loans are costly. These financial arrangements need no collateral since lenders give out small amounts that most borrowers will repay without problems. But they still face certain risks, so they charge fees and interest to compensate for these.

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So even if you borrow just $200, you’ll pay back much more than you get. Smaller payday loans up to $2,000 include flat costs – a one-off establishment fee of 20% of the loan amount and monthly maintenance fees (up to 4%). If this hits your budget too hard, you might think of alternative ways to borrow money.

Larger loans aren’t low-interest deals, although direct lenders give flexible lending terms. So, for example, you can borrow $5,000 and repay it within two years. But this loan includes an annual percentage rate of up to 48%, depending on your personal circumstances and credit score. 

Should I Apply for Payday Loans with Bad Credit?

Good credit boosts your chances of getting payday loans, but no one can guarantee approval. That might discourage borrowers with below-average credit, but that doesn’t mean they can’t take out loans.

There’s still hope for non-ideal borrowers, as bad credit direct lenders can approve short-term payday loans even when your rating isn’t good. But you won’t be considered for loans with the lowest interest.

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Wrap Up

Payday express loans can be your best ally as long as you use them responsibly. And don’t rely on these loans as a long-term solution, as they can drag you to overindebtedness if you fail to meet lending terms.

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