Why Do So Many People Continue to Use Payday Loans?

Why Do So Many People Continue to Use Payday Loans

Despite the growing popularity of bank credit cards, many people are still actively using the services of microfinance institutions – payday loans or at least are thinking about taking the first loan. It would seem that you can easily get either a debit card with a credit limit or a credti card with a grace period of 30-45 days. It would be much more profitable.

Do not forget that lending by applying to microfinance companies has its advantages. For example, it is not always possible to borrow even an insignificant loan amount if there have already allowed delays in payments, albeit for a few days. In this case, the bank will strictly assess the portrait of the borrower. And there no chances of obtaining a mortgage or car loan. For this reason, people continue to use online payday loans Illinois, although in many cases this may be less profitable.

The main reasons why online payday loans remain popular are as follows:

Other benefits of payday loans

Are there any disadvantages of taking out payday loans?

Payday lenders provide a very convenient way to get short-term ”fast cash,” but their interest rates are much higher than those of traditional loans. Indeed, many prefer to take out bank loans or credit cards. But this only works if a person is officially employed, has a good credit history and no current loans. Besides, he or she must be ready to wait for several days to get approved. If everything is ok with your employment and credit history, it is really worth considering the bank’s offer.

Summing up, we can point out the following cons of payday loans:

Are payday loans profitable?

Life situations are different, and therefore we list the cases when it may still be profitable and not risky to get a payday loan online:

Why do Americans continue to use payday loans instead of using credit cards?

In some cases, this is not possible to get a credit card, especially if you are a pensioner, self-employed, a student, or a housewife. If a loan is urgently needed for medical treatment, vacation, car repair, home improvement, education, or to invest in starting a business, there is often no alternative way out. At the same time, you must be sure that you will be able to repay your loan in a timely manner. Otherwise, a payday loan from a microfinance institution may become very expensive and you will not be able to overcome your temporary money difficulties, and you will get into deeper debts and troubles. An excellent illustration of this can be the numerous situations when people take out payday loans for starting their own business, and in the end, they spend money on something else.


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