Payday loan is undoubtedly a great facility for those who have emergencies mid-month or those who need money for any other purpose, but it is important to know what you are getting into before you get yourself one. A payday loan is a short term loans that is usually made by check or by cash.
Payday loan is advantageous in that there are a lot of laws that govern such loans. Kentucky has designed these laws to protect the borrower from predatory lender and this means that the chance of you getting ripped off is lowered.
The basic function of a payday loan is an advantage by itself. This loan is taken before payday as the name suggest and this means that incase you have an emergency, you have bill collectors that are threatening you or you need money for any other urgent purpose, you can get money in a very easy way.
The ease with which you get these loans is a great advantage. All that you are required to provide is personal information such as your social security number, your account number and your physical address (incase you decide to disappear with their money), and you will be good to go.
The fact that these loans are available online is a great advantage. You can get a payday loan in the comfort of your own house, at any time of day or night and your privacy is guaranteed 100%.
Even those with a bad credit history are guaranteed to get the loan when applying for a bad credit payday loan. This is unlike other forms of lending where your credit rating is the basis or your approval or rejection. With a payday loan, you are also likely to get a good rate due to the fact that there are many players in the industry.
However, the disadvantages of getting a payday loan in Kentucky are also significant, although they are outnumbered by the advantages. One such disadvantage is the fact that the rates are between 10% – 30% which are considered high given rates for similar products. When you fail to fulfill your payday loan repayment obligations for whichever reason, the consequence is stiff and it usually involves the doubling of your interest.
Identity theft and other security concerns are a major disadvantage of a payday loan. You have to give your social security number, your work place, your physical address, phone number and other personal information before getting a payday loan. This means that if the information falls into the wrong hands, it can lead to identity theft or worse still, an attack at your home.
Those who don’t have a fixed workplace or salary will not get a payday loan. The option then is to ask for cash from friends or family – this is advantageous in that there is usually no interest charged and you will be safe.
It is clear to see that the advantages of getting a payday loan outweigh the disadvantages – don’t suffer in silence, just type payday loan + Kentucky on your search engine and you will get hundreds of links.