It is obvious to get desperate in tough times and to seek instant help! And the payday loan companies come to rescue in those difficult financial situations. Agree?
Undoubtedly, the payday loan is one of the best ways of raising instant cash to solve any financial emergency. This loan can help you to pay for unexpected expenses or late bills before you get your salary. So, it can save you from penalties that are imposed due to late payments. Even, this loan is payable with the next paycheck, it means you will only be in debt for a few weeks.
So, there are many reasons to choose this loan to solve your financial emergencies. Let’s delve deeper to understand more about the payday loan and its advantages over the other types of credit.
What is a payday loan?
The payday loans is a short-term but high-cost loan. if you need small loans ranging from £1000 to £ 5000 and the larger loans up to £10000 then a payday loan can be a good option for you. The borrower needs to pay back the loan amount within 16 days and a year.
This loan is settled with the amount taken from your debit card, it means you should have enough money in your bank account to repay your loan amount and other expenses.
Let’s move to the benefits of payday loan so that you can understand is it right cash fix for you or not?
It is a simple and quick loan as most of the lenders approve loan applications almost instantly when you provide the all necessary information. There is no need to fill lengthy forms like conventional loans and in some hours lenders can transfer the funds in your account. Even the application process for this loan is simple and quick so there is no need to wait a long time for loan processing like conventional loans.
Therefore, if you require immediate cash then payday loan is a good option for you as you can get a same-day loan.
All the loan processes and interactions when applying for this loan are conducted online. It means there is no need to book an appointment with a loan officer and call the lenders several for a loan. You can send your payday loan application while sitting anywhere at any time whereas in conventional loans you need to fix several meetings with the loan officers.
Payday is easy to access as by meeting a few basic requirements, you can get your funds. If you are 18 or above, have active bank account, having a stable source of income and your income is consistent and verifiable then you can get your loan. It means with less paperwork and without collateral, you can get payday loan whereas traditional loans may require collateral.
Can Qualify for a Higher Amount
The minimum and maximum amount of payday loans depends on the laws in your state. Many payday lenders limit the loan amount for the new borrowers but by paying your loan amount on time, you can get qualify for a higher amount. If you first pay your loan on time then can build good relationships with lenders then your lender can increase your loan amount limit in your subsequent loan applications. Whereas in conventional loans you can get the loan sanctioned according to your credit eligibility, credit score, and income.
Protect your Credit Rating
As for the payday loan, the repayment period is short so you can easily protect your credit rating. In traditional loans, the repayment period can be of a minimum of 1 to 2 years, it means in a long time you can settle your credit rating.
No specific purpose
You can spend your payday loan amount on anything like to pay your bills, to repair your car however; most of the conventional loans are sanctioned for a specific purpose. For instance, if you have taken a house loan then you are restricted to spend your money on buying or repairing your house.
All in all, Payday loan is the attractive option to tackle your financial problems but if it is the right call for the situation at hand.