Although the quick payday loan concept has become common practice, there are still many watchdog groups that disapprove of this type of loan. This is a high-cost loan since the term is short and the interest is very high, but since more people are not able to get loans from banks due to regulatory reasons, they turn to private lenders that offer solutions like payday loans.
Banks are now looking for new mainstream products and since payday loans are very popular with private institutions, banks like Wells Fargo are providing this service. Although this product is unsafe for banks, the reality is that the public do needs a service or product like a quick payday loan because people do run into financial trouble sometimes during the month and if your budget is cut to the bone, you need to find some way to obtain extra cash legally and fast.
When considering a payday loan, you must keep in mind that this credit is a temporary solution to help you out of a sticky situation. Most of the times, the terms for a payday loan are only for two weeks or so, but there are institutions that do provide 30-day loan terms.
This type of credit is only to be used in emergencies like when a window has broken, medical bills must be paid or an overdue bill that simply cannot wait until the end to the month to be paid. It is tempting to get a quick payday loan if you have a birthday approaching or when there is a sale at your favourite store, but since there is a high interest rate involves, it is best to wait if you can.
When obtaining credit, be wise and pay pack the loan as soon as possible in order to save money on interest.