A payday loan is among the best ways of getting quick cash to address a financial emergency. The loan helps cover unanticipated expenses or late bills prior to payday. It saves you from late-payment penalties. 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. On top of that, payday loans have five considerable advantages as opposed to other kinds 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 whole process is simple and fast. There’s no need to fill any lengthy forms as you usually have to when applying for traditional loans. It could take a few hours for a lender to move the funds but you can most probably get the funds on the very same day or at least on the next working day. If they are happy with your information, this can even happen within an hour. Lenders often make it a point to provide speedy services as a way to compete and attract clients.
The entire process of applying for a payday loan takes place online. There’s 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. A typical loan requires a lot of meetings with your loan officer. 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.
Getting a Bigger Loan
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. 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.
Maintaining a Good Credit Limit
Installment loans may let you pay off your loan within a year or two, but the issue is that a lot can occur within that time. You could get sick or you lose your job and so on. Payday loans’ short repayment period may seem like a disadvantage, but it can actually protect your credit rating.