The emergence of online payday loans as a major part of our lives cannot be denied anymore. Over the past few years, these cash advance loans have become increasingly popular, and a lot of people are turning to them in times of need to help them get out of some financial mess.

This service would be able to bail you out on a temporary basis until your next pay check comes in, and looks like a brilliant way to ward off financial trouble.

However, is this service something that is really attractive and should be taken up by many?

Are there any drawbacks in addition to the many advantages of these online quick payday loans?

Let us look at some of the pros and cons of these loans, and how they can help you out, and what you need to be careful off when you take them up.

Starting with the advantages of this service:

1.  Minimum documentation and requirements

Normally you only have to fill up an online form, something that you can accomplish within a matter of minutes, attach a copy of your ID, bank statement and pay-slip, and you are good to go! There is no need to queue at banks anymore, nor is there a need to worry about stringent requirements. All you need to be is at least 18 years old, have a valid bank account, and a stable job that pays your consistently.

2.  Fast approval, instant cash

Once your application is received, expect approval to take anything between 24-48 hours. If you are lucky, you would be able to receive your cash in your bank account is less than a day, and that means instant cash for you to spend. No more waiting for a week or two to get your personal loan approved before you get to spend your cash.

3.  Those with bad credit can apply

Because there is no credit check, those with bad credit can apply for this service as well. Thus this is an extremely convenient way to obtain fast cash for those who struggle to obtain cash from lenders using conventional means as there are stringent requirements based on credit scores. No wonder then that this service is also called bad credit payday loans.

Now let us look at the drawbacks of this service:

1. Interest rates are high

Because there is no regulation to govern what kind of interest can be charged on payday loans, some banks even charge up to 30% of interest. That means for a loan of $1,000, you would end up paying $1,300 when your pay check comes in to the lender. Now that’s a lot of interest! That is why you should only opt for this service in extreme times of need!

2. There is a loan cap of how much you can apply for

This cap is implemented by the state governments, thus each state differs from the other. The maximum that I have come across is $1,500, while the minimum is $200.

3. Late fees are high, and there is an impact on credit score

When you miss your payment, expect high late-payment fees, and the accumulated interest might spell disaster for your credit scores (which would be in your record for between 7 to 11 years)

Taking all these into account, only apply for online payday loans when the need is great, and do not misuse the cash that you receive as it could be disastrous for you, financially!