A payday loan is one of the best ways to get hold of quick cash for anyone dealing with a financial emergency. With this loan, unexpected expenses or late bills can be paid before you receive your next paycheck. No need to pay penalties for making late payments. Since you pay a payday loan on your next payday, you will be in debt only for a very short period – a few weeks or even a few days. Aside from that, these loans have five other key advantages compared to other types of credit.
Lenders usually approve applications for payday loans nearly instantly as soon as you provide the needed information. It’s a fairly quick and direct process. There’s no need to fill any lengthy forms as you usually have to when applying for traditional loans. It could take a few hours for a lender to move the funds but you can most probably get the funds on the very same day or at least on the next working day. In some cases, this can happen within an hour if everything looks good with your details. Many lenders prioritize quick services as a way to compete in the market.
The web is where everything happens, all the processes and interactions involved in a payday loan application. There’s no need to book an appointment with a loan officer or keep calling a lender to follow up. You can practically apply from your home or office, at your dentist’s office or a coffee shop or wherever. A typical loan requires a lot of meetings with your loan officer. With a payday loan, one huge advantage you enjoy over a credit card is your credit arriving as cash.
The requirements for getting payday loans are very basic, such as a consistent and provable income, permanent residency, an active checking account, and being 18 years of age. Though typical loans may need collateral, payday loans do not. As long as they can establish your ability to repay the amount you want to borrow, the loan is yours.
Qualifying for a Bigger Amount
A lot of payday lenders restrict the loan amount that you can get as a new borrower. In most cases, you can only borrow up to your salary range and your lender’s range. However, once you have paid off your first payday loan on time, your lender may increase your limit, depending on what your state laws allow.
Safeguarding Your Credit Rating
Installment loans may let you pay off your loan within a year or two, but the issue is that a lot can occur within that time. You may lose your income, become sick before you have paid off the loan, etc. Payday loans’ short repayment period may seem like a disadvantage, but it can actually protect your credit rating.