Interest Rates of Cash Advance
When you apply for online payday loan to meet unexpected costs in between pay cheques, do take note of the interest rates offered by these lenders. For every $100, it is $20 in interest, which makes it 20% a month. This is similar to the local loansharks rate, as I can imagine. And if you do not pay off this month and let the money roll over, you will have to pay an additional 20% interest. This means to say if you do not pay within 5 months, your loan would have doubled.
In order to qualify for the loans, a borrower would have to be employed for at least 3 consecutive months, earning at least US$1000 and also a valid current account. The online lenders would also consider whether the borrower had applied for other cash advance loans.
Credit history is not very important to the online lenders, hence these payday loans are applicable to those who have exhausted their avenues to apply for loans. However, to mitigate the risks, these people would have to pay high interest rates. Borrowers should be prudent before deciding on any loans. It is thus better to work out better investment and savings plans to increase one’s wealth, instead of living precariously. After all, prevention is better than cure.
Sarah Tan - SingaporeProfit.com
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