Sunday, September 15, 2013

Free Payday Loan: A Boon Or Detriment?

The best things in life come in free package and this is certainly germane to people who have been experiencing critical monetary situation. You might have seen all the banner advertisements on television and internet regarding payday loans yet, some people have not encounter the existence of free payday loan. Yes, there are free cash advances that you can acquire only that this is not applicable for the rest of your loans in the future. Although, this is meant for beginner loaners and those with bad credit standing, it still is something that people can turn to in times of need. Free payday loan is only free for your first loaned amount that is no more than $500 dollars. Once you’ve already acquired your very first loan, the next one will definitely be charged. As you see, this type of loan will only provide you with no hassles on your first credit regardless of your credit standing. This might pose a great advantage to those people who have been weary and anxious of a continuous declination of loans applied. This also becomes a bigger advantage for loan financiers as people will be enticed to acquire more than two loans and the process of debt and loaning continues in succession. Through this, the company will be able to profit on finance charges and interest fees should there be cases of delayed payments. With this chain of circumstances, it only entails that both parties can gain more than less with the entire process. For lending investors, this serves as a marketing strategy in luring possible clienteles with a selling point of providing free loans. On the other hand, clients will be more than willing to get another loan after the first one thus, immediately become loyal debtors of the company. Now this truly served the purpose and a lot of companies have been formulating this free payday loan for the reason of getting more application in a day therefore, more revenues for the company. Applying for this loan only necessitates someone of legal age with more than three months of tenure in his recent company. You also need to have an active account in the bank as this will be a way for you to get your instant cash. Lending investors would generally deposit your loaned amount through your savings or checking account so you better have one. Furthermore, availing free payday loan also comes with higher interest rates. Your first one might be free yet, your succeeding loans can amount of as much as 30% of interest charges. Therefore, you need to mull over if this kind of loan is what you really need. With an interest rate of close to what you can avail, this set as one of the major setbacks of free cash advances. However, if the situation really calls for an immediate solution then free loans might definitely pose a good option. As a final point, keep in mind that these loans are just minutes away to be completed yet, the entire repayment terms would take you not minutes but months to repay, so you better be a wise debtor.