Five Benefits of Payday Loans
When faced with a financial emergency, a payday loan is one of your best options. The loan helps cover unanticipated expenses or late bills prior to payday. It lets you avoid penalties because of late payments. Because a payday loan is paid with your next paycheck, you will only be in debt for a few weeks or even shorter. Aside from that, these loans have five other key advantages compared to other types of credit.
With most lenders, applications for payday loans are approved almost right then and there, provided you have given them all the necessary information. The process is straightforward and quick. You dont have to fill any lengthy forms as you normally would when taking out conventional loans. You may have to wait a few hours or the next business day for the lender to transfer the funds to your bank, but thats usually as long as it can get. If they are happy with your information, this can even happen within an hour. Many lenders strive to offer quick services in order to remain competitive.
The entire process of applying for a payday loan takes place online. Theres no need to book an appointment with a loan officer or keep calling a lender to follow up. You can forward your application from wherever – home, office, a coffee shop, etc. To get a traditional loan, you need to meet with your loan officer a number of times. 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. Conventional loans will often demand collateral but not payday loans. As long as they can establish that you will be able to pay the borrowed amount, they will give it to you.
Qualifying for a Bigger Amount
Payday lenders often put a cap on the loan amount they can allow new clients to borrow. In most cases, you can only borrow up to your salary range and your lenders 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
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. Payday loans short repayment period may seem like a disadvantage, but it can actually protect your credit rating.