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Pros and Cons of Payday Loans

A payday loan is a way out for a short term cash emergency. If you need the cash advance for a long period of time then you are better of finding other means of financing, such as credit cards, a line of credit, borrow from friends or family, bank loans.

Unfortunately these types of loans are not quick and easy. Unless you have not reached your credit limit on your credit card, or you can call for a temporary increase of the credit limit. Excluding credit cards, they are the way to go when your creating a long term strategy.

Even though a payday loan is convenient, the borrowing rate is very high and it’s only logical if you have no other means of getting a loan.

If you are in a financial woes and you need a small amount of cash for a short period of time, then paying a small fees in return for your loan isn’t the end of the world. But if  you are going to get hooked on the payday advance concept, then find alternatives for your cash advance needs.

What you need to qualify for a  payday loan:

Here are some of the common issues:

  • Currently have a job (or receive regular income)
  • Make at least $1700 per month
  • Are 21 years of age or older
  • Singaporean or Permanent Resident

Can people with bad credit apply for a payday loan?

Yes, people with bad credit often have trouble getting the money they need so they turn to high risk loans, but each company varies.


  •  A Payday loans is quick.
  •  A Payday loans is there when you have an emergency.
  •  A Payday loan can get you out of a financial woes, when you can’t get a loan elsewhere. (or Don’t want to)


  • A  payday loan’s fees may be extremely high compared to other means of borrowing.
  •  payday loan is easy to get and you may get hooked on using them.

Cash Advance Tip No.1:

Have your records ready, so your online payday loan will go quickly:
Below is a sample of the type of information companies require:

  • Where you work
  • When you started
  • How long you worked there
  • You monthly Income

Cash Advance Tip No.2:

Be sure to repay on time. The fees are extremely high and you should use a payday loan for the least amount of time as possible!

Cash Advance Tip No.3:

Use a payday loan for a short term cash advance only. Use them frequently and your are paying outrageous fees.

Here is a summary and my opinion. If you’re in a financial woes and have nowhere else to turn, then paying the fee is ok for this type of cash advance. But if there is another way to get the cash you need then try other places first. Because you don’t want to end up using a payday advance for a long period of time and paying outrageous fees.

Borrow only what you really need, nothing more
Taking on a loan is a heavy responsibility. Do not borrow for unnecessary reasons.
Borrow because you need to and have carefully considered your reasons for doing so.

© Alpha 8 Credit Singapore