Difficult financial crisis can happen to anyone. It’s important that we deal with the situation and get ourselves back on track if that happens. A payday loan is one of the fastest and reliable ways of acquiring quick cash in resolving a financial emergency. The loan is an assistance for unexpected expenses or late bills before you get your salary. It will help you from getting penalties inflicted on late payments.
There can only be a little problem if you want to get a payday loan, you will only be in debt for a few weeks but the good thing is a payday loan is payable with the next paycheck. Payday loans have more advantages over other types of credits. To help you in dealing with difficult financial situations, we’ve listed a couple of its benefits outlined below.
1. Fast and Easy
The process for applying a payday loan is simple and quick. Most lenders will immediately accept your application when you provide the necessary information. There are no lengthy forms that you need to fill as it is with the cases of conventional loans. Credit cards and conventional loans take a longer time to process. Before you can access funds, the process normally makes you wait for several weeks, which is not suitable when you have an emergency.
Moreover, there is no complete guarantee that your request will be approved.
Unlike with payday loans, it may take some hours for the lender to transfer the funds but you can receive the funds on the same day or on the following working day. If you can quickly provide the required details, some lenders may transfer the funds within an hour. Also, when you apply for a payday loan, you will be notified with a feedback on whether your application is approved or not within an hour. In the market, lenders are pushed to offer fast and reliable services to remain competitive. If you ever get declined then you can seek help elsewhere immediately.
Most payday loan applications and interactions are already conducted online. If you do not like standing in a long queue then a payday loan is a good option for you. There is no need to book an appointment or call your lender, you can send your application seamlessly from your home or office, unlike traditional loans that will require you several meetings with your loan officer.
A payday loan does not limit you in spending the cash for a specific purpose only. You can use the cash on anything whether if you need to pay your electricity bills or if you want to repair your car. Traditional loans are different. For instance, you can only buy a property with a home mortgage or buy a car using a car loan. Payday loans do not necessitate you with paperwork and documents, but some lenders will require you for proof of your income.
3. Fewer Requirements
You only need to meet a few basic requirements when it comes to payday loans. The very most important primary requirement is a stable source of income. As long as you have a steady and justified income then you are guaranteed to have a willing lender. Having a stable income is enough proof to the lender that you can repay the borrowed money. You should also be 18 years and above to get a payday loan to meet requirements of having a permanent job. Other requirements include checking account and registration as a permanent resident in your state.
Traditional loans do sometimes require collateral. However, you do not need any collateral to get a payday loan. The good thing about payday loan is that you can still apply with a bad credit as long as you have proof that you can pay it on time. Meanwhile, having bad and poor credit rating will surely deduct your qualification for a traditional bank loan. For payday loans, your history of financial mistakes and struggles do not limit you from obtaining financial help whenever you need it.
4. Increase for a Higher Amount
Loans accessed by new borrowers are most of the time put on limit by payday lenders. You can only access an amount ranging within your salary and the lender’s extent. If you pay your first payday loan on time, you are giving your lender a good impression and he/she may increase the amount that you can access in your future applications.
Take note that the minimum and maximum amount that lenders give always depend on the laws in your stake. Paying your loans early or on time establishes a better relationship with your lender. Once this relationship is established, you can have a quicker solution to financial emergencies.
5. Safer Credit Rating
A payday loan may have a short repayment period and may seem like a burden at first, but it is actually an advantage if you want to protect your reputation in your credit rating. For an instance, if you apply for an installment loan, it will take you one or two years to repay the loan. Anything can happen within that period. There can be a possibility that you lose your source of income or get sick before finish paying the borrowed amount. This would only worsen your credit score.
A payday loan is a better quick and convenient way of handling your financial emergencies. You can easily access cash in your hands with bad credit and no collateral needed. You borrow and spend money for any purpose as long as you pay accordingly. However, you need to be aware with the legal obligation in paying the loan on time to avoid any penalties and lawsuits. When you pay your loans on time, you do not only protect your credit rating but also allows you to qualify for a higher amount in your subsequent application.
Author bio: Ivandrea Ollero is a daytime writer for Quick Cash, one of Australia’s top responsible lenders that offers fast and reliable payday loans & cash loans of $200 to $2000. She writes to provide information for successful cash loans and payday loans to help people over a difficult patch. Ivandrea graduated from St. Scholastica’s College Manila, Philippines with a Bachelor’s Degree in Mass Communication minor in Broadcast Journalism.