Repaying the Poor Credit Cash Advance
You are expected to pay off your direct payday loan with your next paycheck right away on its arrival. You can also apply for an extension if you see that it will be difficult to pay the loan back in full on its date when it’s due. This will mean you will have to pay a fee or make the minimum payment on your fast and easy loan.
Why are Payday Loans for Bad Credit Criticized?
The basic reason is actually their design. They are designed to meet the needs of people who are unable to apply with their bank. Most lenders don’t expect you to have any credit history with them either, which means they risk some people won’t pay their debts off. To minimize their risk and make business, they will charge a lot for quick and easy cash loans. Interest rates vary from 15 to 30 dollars per every 100 borrowed. If you look at the APR, annual percentage rate, it may be depressing how much you owe in the end when you compare to other loans. It can be more than a few thousand dollars! Another thing is fees charged for every extension and increasing rates for that as well. All in all, taking overnight payday loans with poor credit may mean you will end up in bigger debt than even before. Best things would be to use it only for real life emergencies and only once in a while.