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The Pitfalls of Same Day Cash Loans
When you are short on your money, there are chances that you need same day cash loans to help you out. While they can be a good idea, as long as you use them as a last resort, there are a few dangers that you will need to be aware of. Sometimes, same day cash loans do not sound as great when you consider the downsides of them.
The main downside is that the interest rates are extremely high. The APRs of same day cash loans are usually between 1000 and 3000 percent. This is a lot of money that you will end up paying on the same day cash loans. However, the upside to this is that you are only supposed to keep the money for the first month; the interest rates are generally lowered for this term and you will find that you are paying less than your overdraft fees or credit card limit fees.
However, if you keep the same day cash loans for longer then you will end up paying a lot of money back. £100 could turn into thousands over the year. This will also damage your credit rating rather than helping it. Other lenders will see that you took out same day cash loans and were unable to stick to the one month term; this makes you look irresponsible and unstable and they will be less willing to loan you money over a longer period.
Another downside could be the requirements that are put in place. Providers of same day cash loans do not do credit checks but because of this, they will want to ensure that you are currently able to afford the amount of loan that you want to take out. Most of the time, these requirements will be about your employment and the amount of money that you have coming in each month. Many will find that they cannot gain same day cash loans if they are unemployed or in contractual employment.
These requirements will also determine the amount of money that you can take out for the same day cash loans. You could find that you are earning too little to be able to take out the full amount that you need for the month. There are a few options that you have in this case with same day cash loans; you could look at another lender, you could look at gaining more than one same day cash loans or you could speak to the people that you will owe the money to, maybe you can make an arrangement on the amount that you pay.
You should never overstretch yourself with same day cash loans. There are many risks and the worst is that you will ruin your credit rating. The longer you owe the money for, the more interest will be added and this can cause you to end up paying a lot more than you needed in the first place. You should weigh up the downsides with the positives before you sign for the loans.