Payday loans Chicago has been designed to meet immediate cash requirement. At first glance, it might seem like a good choice since the loan amount is transferred to your account within a day of your application. However, you should avoid these loans as much as you can. Here are some reasons why.
It has High-Interest Rate
Payday loans have a high-interest rate which can sometimes be more than the interest rate of credit cards. You might have taken the loan for short term fix but you ultimately end up paying a huge sum of money. A majority of the payday loan lender opts for direct or electronic deposit which means that they have access to your bank details while assessing the interest rate.
Like other hidden bank fees, payday loans Illinois have hidden fees, too. These fees are more than the loan capital and the interest rate making payday loan an expensive process of borrowing money. Hence, before you obtain the loan, you need to make sure that you read the agreement properly and understand the financial obligation you have.
Aggressive Lending and Collection Process
One of the biggest reasons that payday loans Chicago have come into the limelight is because of the aggressive lending and collecting process that it entails. As a matter of fact, some of the payday loan companies even go the extent of threatening the consumers with garnishment of wage and prosecution. This is an illegal collection procedure.
Not Good Choice in the Long Run
Payday loans might help in times of need but it is certainly not a wise financial decision. With high-interest rate, hidden fees, and aggressive money collecting process, it is clear that these loans aren’t the best option when you require money. In fact, this might worsen the financial instability that you are facing.