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The Downfalls of Quick Loans Same Day
There are many people looking for a way to make ends meet. One of the most popular ways currently is the use of quick loans same day. These can offer a number of advantages but there are some pitfalls that you will need to be aware of.
The main problem is that while quick loans same day will not ruin your credit rating by taking one out, they can if you do not pay the money back on time and do not arrange it with the company. A black mark will be put against your name and lenders will be worried about that. If you cannot afford to make a small monthly payment then why would they trust you with a long term installment loan?
Not everybody is able to get their hands on the quick loans same day. The lenders will put themselves at a high risk by loaning without checking the credit history. Because of that, there are many that will put requirements into their terms for the loans. These requirements change between each site but if you are in a stable employment and earn over £750 per month, there are high chances that you will be approved for the loan in all places.
The interest rates are extremely high for the loans. The APRs are usually over 1000% and sometimes around the 2000% mark. This is something that will change between companies and you should look out for any other charges that apply for the quick loans same day. Of course, there is a set monthly fee for the first month, which is usually much lower than your overdraft charges or for going over your credit limit.
The small amount of money can be seen as a pitfall for quick loans same day. The main problem is that you can only take what you will be able to afford to pay back the next month. This is where most of the problems are; just because you earn £750 per month does not mean that you will get to take the maximum amount of the loan. You need to consider the amount that goes out of your account first.
You may be best searching for other ways to afford each month rather than instantly going for the quick loans same day. You could arrange lower fees on your overdraft or have your credit limit extended. You may also find that a late payment fee is less than the loan. These have fewer risks to the quick loans same day and you will already have a better relationship with them.
You need to be careful when it comes to using quick loans same day. While you will be able to help your credit rating, taking too many of them in a short space of time will damage it. You will show that you need financial help and that you are unable to be responsible with your money. This will look back and will have many other lenders turn you down for applications instantly.