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. It lets you avoid penalties because of 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. Besides that, and compared to other forms of credit, payday loans offer five other important benefits.
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 may take you hours or the next working day to receive the cash in your bank account, but it usually doesn’t take longer than that. In some cases, this can happen within an hour if everything looks good with your details. Many lenders strive to offer quick services in order to remain competitive.
The entire process of applying for a payday loan takes place online. You don’t have to ask for an appointment with a loan officer or call the lender over and over to ask about your application’s status. You can practically apply from your home or office, at your dentist’s office or a coffee shop or wherever. Getting a conventional loan means meeting with your loan officer several times. One big advantage a payday loan offers, as opposed to a credit card, is that you get your credit as cash.
Payday loans have very basic requirements, such as a steady and verifiable income; an active checking account; permanent residency in your state; and the age requirement, which is usually 18. Though typical loans may need collateral, payday loans do not. Provided you can prove your ability to repay the money you would like to borrow, they will approve your application.
Qualifying for a Bigger Amount
Payday lenders often put a cap on the loan amount they can allow new clients to borrow. You can only typically get an amount that falls within your salary range and within the lender’s. After you have paid for your first payday loan, and you did it on time, your loan amount limit can be higher in your future applications, depending on the laws in your state.
Maintaining a Good Credit Limit
An installment loan usually gives you one or two years to repay, but the problem is, anything can happen within that period. You might fall ill, lose your income and the rest. The short repayment period that generally comes with payday loans may feel like a flaw, but it is actually favorable for those who want to protect their credit rating.