Which Of These Is A Correct Statement Regarding Payday Loans?
What Is A Payday Loan?
A payday loan which can also be referred to as a payday advance or cash advance loan is a short-term loan that is usually characterized with high-interest rates and sometimes a component of hidden fees. As a result, people normally get stuck in debt even if they borrowed just a small amount simply because it becomes difficult to clear the debt.
The following are the said statements for the question. They’re harder to get than both car loans and credit cards.
b. They’re easier to get than both car loans and credit cards.
c. They’re easier to get than car loans but harder to get than credit cards.
d. They’re easier to get than credit cards but harder to get than car loans.
Looking at the above options, the right answer is option “B”, that is, “ They’re easier to get than both car loans and credit cards”.
Reasons Why The Correct Option Is “B”.
The option “B” was chosen as the right answer because it is true that it is easier to get a payday loan than a car loan or credit card. This is because, the payday loan, is much easier to get as it deals with emergency needs while a car loan or credit card takes a little more time for it to be processed.
Disadvantages Of Payday Loans over Car Loans And Credit Cards.
Despite these facts, car loans and credit cards are safer forms of loan than payday loans.
In other words, payday loans are much riskier than car loans and credit cards.
Also, payday loans attract high-interest rates than car loans and credit cards.