Payday Loans and Five Key Benefits
A payday loan is among the best ways of getting quick cash to address a financial emergency. With this loan, unexpected expenses or late bills can be paid before you receive your next paycheck. It saves you from late-payment penalties. Because a payday loan is paid with your next paycheck, you will only be in debt for a few weeks or even shorter. Besides that, and compared to other forms of credit, payday loans offer five other important benefits.
In most cases, lenders approve payday loan applications loans almost immediately once all your information is there. The whole process is simple and fast. Theres 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 doesnt take longer than that. In some cases, this can happen within an hour if everything looks good with your details. Lenders often make it a point to provide speedy services as a way to compete and attract clients.
The web is where everything happens, all the processes and interactions involved in a payday loan application. Theres 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 dentists office or a coffee shop or wherever. 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.
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. While traditional loans may require collateral, payday loans never. 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
A lot of payday lenders restrict the loan amount that you can get as a new borrower. Usually, you will only be approved for a sum that is right within your salary range as well as the lenders. But as soon as you have paid off your first loan on time, your loan limit will usually go up, depending on your state laws.
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 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.