There are many benefits, but also some drawbacks to this type of loan, so it is wise to be informed before going with this form of credit. Some pros include the convenience of the transaction. Few other loans pay out in a 24-hour period, aside from using a credit card. What if you do not qualify for a credit card, due to bad or no credit? This is where a payday loan is especially beneficial for you, because your job serves as your credit. So long as you have a steady income, you can receive money fast. What's wrong with fast, easy money?
The major con with a payday loan is that the interest rate is usually well over 20 percent. If that isn't bad enough, the loan is usually due within a month of the payout. This does not really give much time to pay it back the loan. Unless you extend the loan term, which comes with a fee, you usually end up fronting money you cannot afford to lose, to pay off the loan. Payday loans can be useful, you just need to ensure you are prepared to pay them off on time.