When faced with a financial emergency, a payday loan is one of your best options. The loan helps cover unanticipated expenses or late bills prior to payday. It saves you from late-payment penalties. Because a payday loan is paid with your next paycheck, you will only be in debt for a few weeks or even shorter. Besides that, and compared to other forms of credit, payday loans offer five other important benefits.
Quick Application and Approval
In most cases, lenders approve payday loan applications loans almost immediately once all your information is there. The process is straightforward and quick. There’s no need to fill any lengthy forms as you usually have to when applying for traditional loans. You may have to wait a few hours or the next business day for the lender to transfer the funds to your bank, but that’s usually as long as it can get. Sometimes, this can even transpire in just an hour as long as all your information is good. Many lenders prioritize quick services as a way to compete in the market.
The entire process of applying for a payday loan takes place online. You need not set an appointment with a loan officer or keep ringing your lender to know the status of your application. You can forward your application from wherever – home, office, a coffee shop, etc. Getting a conventional loan means meeting with your loan officer several times. One big advantage a payday loan offers, as opposed to a credit card, is that you get your credit as cash.
Payday loan requirements are pretty basic, such as permanent residency in your state; an active checking account; the age requirement, which is probably 18; and most importantly, a stable and confirmable income. 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.
Qualifying for a Bigger Amount
A lot of payday lenders restrict the loan amount that you can get as a new borrower. Usually, you will only be approved for a sum that is right within your salary range as well as 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 are often paid over one or two years, but then within that period of time, a lot can really happen. You may lose your income, become sick before you have paid off the loan, etc. Payday loans’ short repayment period may seem like a disadvantage, but it can actually protect your credit rating.