Payday loans are preferred by those who need to fulfill their needs of cash and life necessities. There are several ways to apply for payday loan nowadays, such as you are able to apply it in the bank or even now getting a loan can be done online. There are even some online loans which only needs your identity card without any supporting documents just like applied in a bank. If you apply for the loans in the bank, other supporting documents are needed such as credit card records and salary slip. This makes people who need quick cash directly choose online quick cash loans.
Before you apply one, here are the risks of online quick cash loans you have to know so that you will not regret in the future.
Risk of Bad Credit in the Middle
Usually, applying for payday loans through online loans offers loan funds with a very easy requirement, only with an identity card. If you compare it with credit loan offered by a bank, other supporting documents are required, such as credit card records and salary slip. These additional requirements are actually as your protection from the bank if at any time there is credit payment congestion. So that you already have a clear agreement with the bank about how to resolve if such a problem happens, whether if you are charged with a specific amount of fine or you have to repay at once.
But if you use the service of online loan which offers only your identity card as requirement, the possible risk of credit payment congestion is the addition of interest rates that automatically make your debts accumulate. Moreover, if you ignore it, the interest rates will get higher as well as your debt. This system is usually used by loan shark so that you have to be careful if you are offered a loan with your identity card as the requirement.
Deceived with Low-Interest Rates
Besides simple and easy requirements, online loan also offers low-interest rates, usually only 1% a day. This sounds interesting. But you need to compare it first with the interest rates give by a bank. Bank usually offers interest rates of only 0.99% per month, but you will be charged with an administrative fee which the amount is nothing to compare with the total interest rates of the online loan. For example, if you apply an online loan of $3 millions with 30 days loan duration, if calculated with the interest rates of 1% per day, then the amount of money you have to return is only $37 million. With 2 years loan duration, the amount is surely bigger if you have an online loan.
Do not directly decide to take online quick cash loan and getting deceived by its simple requirements and low-interest rates. If you face problems in the middle of the way and you cannot pay the loan, the loan sharks will thread you to pay your payday loans.
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