What is a Payday Loan?
A payday loan, which is often referred to as a payday advance, cash advance loan, or a salary loan is a short-term, small amount loan that a borrower would repay at his or her next payday. Often payday loan lenders have access to the borrower’s checking account so they can electronically deposit the money as well as automatically withdraw the funds for the repayment.
There are many reasons someone might need to take out a payday loan. Often it’s used to cover normal living expenses or maybe get out of a rough spot or emergency situation when they don’t have the funds readily available. Taking out a payday loan isn’t something people should do often. It’s best to use a payday loan for emergency situations only. These loans can be a reasonable solution to your financial needs since they can be cheaper than not paying your bills or having an overdraft fee on your checking account.
The Dark Side to Payday Loans
While payday loans can offer relief in a time of need, there can be a potential dark side to them. According to Credit.com, “Many people get into trouble with these types of loans when they are unable to quickly repay the debt. If you can’t repay the loan at the end of the term, you’ll be charged expensive additional fees. It is very costly to be stuck in a payday loan cycle for a long time and can lead to larger financial problems.” Always use loans responsibly and pay them back on time to prevent any fees or consequences.
How Wise Loan is Different
Although a Wise Loan is similar to a payday loan in that it helps people get through a tough financial situation even if they have a bad or limited credit history, Wise Loan provides many additional features that make it a smarter option. Wise Loan offers loans between $200-$1500 and allows the borrower to choose how many payments they wish to make before the loan is repaid (between 2 – 12). Plus Wise Loan is the only lender to give cash bonuses for timely loan payoffs! The funds are deposited to a special “Nest Egg” account that you can borrow from instead of taking out a payday loan next time! Learn more about Wise Loan and apply online at www.wiseloan.com. Stay Wise!