Are you looking to take out a 2000 loan? If so, then you have probably seen many advertisements and are wondering if all the payday loans and cash advance loans that are being advertised are a good option for your loan. In this post we will discuss the advantages of taking out a loan for 2000 from a payday or cash advance lender, giving much-needed advice for those seeking such loans.
Advantages of 2000 Loans from Payday Lenders
These companies do not succeed for no reason - there are certain advantages to taking out a 2000 personal loan from a payday or cash advance lender. Generally speaking, the advantages can be summed up in three main points:
- Payday loans are fast. You can walk in, fill out the application, and then walk out with your money in under 1 hour. If you are in a situation so dire that you have to have cash now, this may be a good option.
- Cash Advance Loans are easy to get. There are no credit checks required, and are thus attractive to people looking for 2000 loans for bad credit borrowers. All that is required is that you are an adult over the age of 18, have a checking account, and that you have a job.
- There are many different places to take out such loans. You can go online and have the money wired directly to your account within minutes, or you can go to a lender and have them put cash right into your hand.
Disadvantages of a 2000 Loan from a Payday Lender
While the advantages make these loans appear quite attractice, it's important to remember that there are also disadvantages that you need to consider. To put it simply, all the advantages are centered around costs of the loans:
- Origination fees average 17% (+ or -) for the industry.
- APR% average above 400%. Note, however, that you don't end up paying 4 times the loan amount in interest unless you don't pay it off for over a year
The other disadvantage is that these loans are short-term only loans in nature (do not use them for long-term financing). Usually you write them a post-dated check that will be cashed in one or two weeks, and if the check does not clear then you have penalties and fees assiciated that you don't want to deal with - so make sure the money is there to cover it.