Payday loans actually have some significant pros associated with them despite the public consensus that payday loans are bad. The truth is that just like every other financial product or service, quick cash loans have both pros and cons. Transparency is very important so if you ever take out a payday loan, you need to be sure that all the terms and conditions are clearly explained to you. A payday loan can help you out in a pinch, but as a consumer, you need to protect yourself and preferably only do business with reputable and regulated companies. One company to check out would be Cashco Financial; you can visit their website at www.cashcofinancial.com. There is a lot of great information on financial education and many different available products and services to choose from.
Payday Loans Pros
Payday loans provide a lot of benefits to clients who have been turned away from the banks and the credit unions. Payday lenders try to always say yes to everyone who walks through their doors or comes to them online. A payday loan can be taken out within minutes and allows anyone to get the money they need even if they have bad credit or no credit. A payday loan is the only financial product that does not require a credit check.
Some payday lenders and alternative finance providers like Cashco Financial, offer friendly service to everyone. While other lenders hide behind bullet-proof glass and treat their clients like numbers instead of people. When you walk into a Cashco branch, it is a lot like walking into a bank except that Cashco employees greet everyone with a smile and a handshake while banks only talk to you if you have lots of money with them. I like doing business with people who care about everyone equally and that’s Cashco Financial.
Payday Loans Cons
Payday loans certainly have a list of cons as with any loan product. The most prominent con is the high associated rates and fees. In Canada, a payday loan costs between $15 and $23 per $100 borrowed depending on the province you live in. The reason payday loans cost so much is because of the high risk of defaulting that payday loan clients have. When a client of a traditional bank defaults on a loan, it’s no problem for the bank because they can just take that client’s house or car, or drain their accounts. This is definitely a big con of big banks. Payday lenders do not do this to their clients, so they have to charge higher fees in order to be able to have enough money to stay in business and provide other people with fast access to money when they need it.
Another concern about payday loans is falling into a debt cycle of constantly re-borrowing and developing a dependence on regular payday loans to make up a reoccurring shortfall of cash. Companies like Cashco Financial believe that their clients should only use payday loans as a short term solution to a occasional cash shortage. They provide their clients with financial education and encourage responsible saving habits through their Budget Buddy system: https://cashcofinancial.com/p/budget-buddy-signup/
