If you have ever had a sudden financial emergency, you have likely considered payday loans as an alternative to borrowing from friends or family. Some people avoid payday loans because they are unsure if they are the right decision. However, here are four advantages of payday loans that make them a viable option to consider.
Easy to Get Approved
A poor credit history is one of the biggest obstacles for many people who apply for a bank loan. Fortunately, payday loans are easy types of loans to get approved for because a credit check is not necessary. Instead, the loan store is primarily interested in whether you have defaulted on a payday loan in the past. If you have always paid back your payday loans or have never applied for one before, chances are good that you will qualify.
The other biggest factor in determining whether or not you are eligible for a payday loan is your total monthly income. The payday lender will assess your income in comparison to the amount that you want to borrow and the interest rate that they charge for their loans. As long as your income is high enough that it is likely you will be able to pay your loan back, you should expect to get approved.
One of the more challenging aspects of applying for a bank loan is the fact that banks are not known for having the most flexible hours. Applying for a payday loan is often more convenient, as many payday loan stores are open outside of normal bank hours. These flexible hours also give you a greater window of opportunity to pay your loan back on time.
Payday loan stores will often provide several different application and support options to make it even easier to apply. If you are not able to go into the store to apply, you can often apply on the loan company's website. Many companies also offer round-the-clock phone support, providing information about the application process, eligibility, and interest rates.
Instant Cash for Emergencies
Sometimes the best solution for a financial emergency is to have cash in hand as quickly as possible. Unlike bank loans, which often have a lengthy approval process that can sometimes stretch into several months, you can expect to walk out of a payday loan store with the full amount in cash that you have been approved for.
In an effort to make their service as convenient as possible, many payday loan stores will offer a guarantee on the amount of time it will take to receive your cash after you have been approved. If your financial emergency has you pressed for time, look for a loan store with a time limit guarantee so you will know exactly how long the it will take to get your loan.
No Spending Restrictions
If you apply for a mortgage or an auto loan at a bank, you are expected to use the loan money for a specific purpose. Payday loans are an excellent way to cover general debts, as payday loan companies do not place any restrictions on how you spend the money that they lend to you. This means that a single payday loan could potentially be used to cover multiple small debts, giving you much more control over your finances.
No matter what your credit score, lending history, or monthly income may be, payday loans are an excellent option to help with unforeseen financial difficulties. Keep the advantages of payday loans in mind the next time you are in need of cash quickly so you can get your finances back under control as easily as possible.Share