When facing an emergency financial need, one of the best solutions is a payday loan. This loan can help you pay for unanticipated expenses before you receive your salary, and even save you from the penalties of late payments. As you can glean from the term, a payday loan is paid on your next payday, meaning your debt is only good for a few weeks.
Aside from that, there are other important advantages to a payday loan compared to a typical loan.
When you apply for a payday loan, feedback, whether favorable or not, will come almost instantly after you forward your application. You need fill extensive forms as conventional loans require. In most cases, the funds will be moved to your account either during your date of application or within 24 hours, depending on whether or no you have completed the lender’s requirements. Lenders are always conscious about their speed of transaction because they know it gives them a competitive edge.
All payday loan transactions are conducted online. You need not see a loan officer in person or keep inquiring about the status of your application. Everything is done on the Internet, regardless of your physical location. Applying for a traditional loan involves a series of meetings with your loan officer. One advantage of a payday loan compared to a credit card is that you will receive your credit in cash, allowing you to spend it in any manner you want.
Getting a payday loan is easier because there are only a few basic requirements that you must satisfy. For example, the main requirement is that you have a stable source of income, while traditional loans need you to put in collateral too. A payday loan doesn’t need collateral. Provided you can prove that you have a stable income that can pay off the money you borrow, you’re all good. Other typical requirements include registration as a permanent resident in your state and an active checking account. You also have to be over 18 years old to qualify.
A lot of payday lender limit the amount that you can borrow for the first time. After that, you will be able to borrow a bigger amount, depending on the lending policy and of course, your income.
Credit Rating Protection
You may dislike the short repayment period that a payday loan comes with, but it’s actually an advantage when you think of safeguarding your credit rating. If you apply for a regular loan, you have around one to two years to pay it off. But no one knows what could happen within that period. You can get sick, lose your source of income and so on and so forth. With a payday loan, you pay the money right on your next payday and that’s it. You have been refreshed.