About Me

Investing Your Money Properly

I still remember the first bad financial decision I ever made. My seven-year-old buddy told me that if I lent him a few dollars, he would pay me back ten a few weeks later. Unfortunately, he forgot all about his debt, and I was left without my allowance. Although it might seem like a silly example, bad financial decisions like that one plague adults everyday. I have had my fair share, and so I decided to create a blog dedicated to helping you to invest your money properly. Before you take your hard-earned money and throw it at a cause, think about the advice on my website to make a great decision.

Investing Your Money Properly

The Pros And Cons Of A Payday Advance Loan

by Penny Evans

Even if you are the most fastidious of budgeters, there will most likely be some point in time when you are faced with an extreme financial emergency and will need to find a way to quickly get your hands on some cash. There are many options for loans, but a payday advance loan is a quick, easy, and low-hassle loan. If you need emergency money and are thinking about using a payday advance service, you should know the pros and the cons of taking out a payday loan.

The Cons 

Interest Rate 

Payday loans are know for pretty high interest rates, and their interest rates are the largest disadvantage. Payday loan interest rates can be up to 400%. On top of that, there are also fees for taking out a loan. However, if you pay your loan back in a responsible manner, and on time, you won't be paying excess interest. The problems start when you keep a loan out for an extended period of time, or start borrowing money in excess. 


Although the ease with which you can get a payday loan is an advantage, for some people it can also be a disadvantage. Due to the fact that payday loans are so accessible, many people might find themselves wanting to continue to take them out in non-emergency circumstances. They can be addicting, and if you find yourself compelled to take advantage of the ease of access, you might not want to start down the payday loan path. 

Credit Score Neutral

Depending on your credit, the fact that payday loans don't impact your credit rating could be a bad or good thing. People with lower credit looking to improve their credit score might think about taking out a payday loan, paying it back in a timely and responsible manner, and improving their credit score. However, these type of loans do not impact your credit. That means whether you pay your loan back early or late, your credit score will neither decline or improve. 

The Pros 

No Collateral 

One of the biggest advantages of a payday advance is that you do not have to provide collateral. Sometime banks require collateral, such as a house title or car title, for a loan before they will even consider giving you money. However, payday loan centers only require that you show proof of employment in order to get a loan.

Credit Rating Doesn't Matter

If you have a bad credit rating, you will have hard time getting a loan, or even a credit card, in case of emergency. However, when you take out a payday loan credit rating doesn't matter. You can have the worst credit in the world, and still get approved for a loan. As long as you provide some sort of proof that you have income, you will be able to get a loan. 


The biggest advantage of a payday loan is how quick they are. Often times you can walk into a loan center and walk out with your loan within the hour. Not all loan places are like this, but it is unlikely that you will ever have to wait more than a few days to get your money. This makes a payday advance location ideal for emergency situations. 

When payday loans are used responsibly, they can be a life-saver. If you are in a situation where you need cash right now, but know that you can responsibly pay your loan back on time, a payday advance loan is the best choice. They are easy to get and you get the money almost immediately, making them the perfect loan for an emergency situation.