The advantages of getting a payday loan through National Payday include the fact that the company tends to approve all applicants who have a job that pays more than $1,000 per month, according to National Payday. This means that it is easy for most working people to get a short-term payday loan through National Payday. However, there are many disadvantage to this type of short-term loan, including the fact that the Washington State Department of Financial Institutions investigated the company for a potential scam operation in 2009.
Other disadvantages of payday loans include the fact that they tend to be expensive in the long run, states the Samurkas Group. Borrowers who are not careful with this type of short-term loan could end up suffering long-term financial repercussions, including debt and credit rating problems.
Another major disadvantage lies in the very nature of the payday loan itself. The idea of a payday loan involves the borrower taking money from the lender with the promise that the borrower pays the lender back with his next paycheck. If the borrowed amount constitutes a large portion of the paycheck, some borrowers may find themselves right back where they started, in need of a loan due to insufficient funds.