Payday loans have been a controversial financial service for a long time. Consumer groups call them predatory, while consumers in urban communities call them necessary. Payday loans are often aimed at consumers who otherwise have a hard time qualifying for bank loans or credit cards due to poor credit histories.
What makes payday loans controversial is their high interest rates, which average around 400% annually. Interest rates this high can make it difficult to get our of payday loan debt if you’re not prepared. However, these loans are approved with no mandatory credit checks, making them easily accessible in a financial emergency.
Secured credit cards and prepaid debit cards are other emergency options with lower interest rates than payday loans. Credit cards are secured with a deposit of your choosing, which also sets your credit limit. Prepaid debit cards work similarly, but without the need to repay borrowed money. You can simply reload the card when you need to and save it for an emergency.
Be smart with your money and smart about online instant payday advances. While they’re convenient, they’re not your only option. Shop around for the best financial product to suit your needs. And if payday loans are best for you, search online for a reliable lender you can trust.