These days, when you look for payday loans online you may come across a lot of articles criticizing them which may lead to a conflict in your mind as to whether or not to apply for one. However, before drawing conclusions, you must know why they are condemned for you to be able to make a fair decision.
Frightening terms like “deb traps” and “debt cycles” are often associated with articles that give readers a scary picture about payday loans, which are most often than not, written by other lenders. Nonetheless, probably the only reason that one can state about why payday loans are unfavourable is the fact that the rates of interest are seemingly higher in comparison to traditional loans. This fact however, doesn’t change the truth about payday loans offering advantages that other loans do not.
What do payday loans offer that traditional and/or other loans don’t?
Quick approvals: You can get a payday loan within a few hours, which is almost impossible for a traditional lender to provide. Reason being that traditional loans are very time consuming with their approval procedures which means that just to approve your request for a loan can take at least a day.
- Short term requirements: There is no doubt that a long term requirement for cash can be given to you only by traditional lenders like banks. However, if you’re requirement doesn’t exceed about $1000, then you do not have to run around just to be financially assisted with such a small amount of cash. That’s when direct lenders offering payday and installment loans come handy and you get to avoid the hassle of getting involved in dealing with traditional loans that can take up to weeks to process.
Online applications: The fact that you do not have to run around from store to store applying for a loan saves a ton of time and money, which is another reason why online payday loans are considered to be very convenient. All you have to do is grab the closest smart gadget near you, open your most trusted lender’s website and apply! Fun fact- it takes just about 3 to 5 minutes to do so, with most lenders.
24/7 accessibility: No body needs to take out time specifically, to apply for a short term payday loan. We are already at a point in life where 24 hours in a day seems like too little and to take out time from such a busy schedule in order to get finances to help us for a short-term purpose, cannot be a situation that anybody would want to be in. Hence, with payday loans online accessible to you round the clock, you can apply at any given time of the day and on any day of the week that suits you best. Also, if you need cash for an emergency, you can apply immediately!
You can get funded even with bad credit: One of the best parts about payday loans is that you do not have to worry about possessing a faulty credit rating. Most online lenders offer loans to those who have poor credit scores as well. They do not rely on credit checks in order to qualify one as a trusted borrower, and instead depend on their income’s stability. Of course, the amount you can avail will depend on how much you earn on a monthly basis but you still get some money even if your credit score is considered to be undesirable or if you are termed a “high risk borrower” by other lenders who refuse to fund you.
- No collateral: Apart from the fact that you can get cash even if you have bad or no credit, you also will not be asked to provide collateral, which is highly unlikely a situation to occur with a traditional lender. For those who have just started off in their careers and are struggling financially, this is a great option to cover expenses that your income isn’t sufficient for.
Sure, payday loans are more expensive than traditional loans, but they also offer benefits that other loan types do not. What is important is for one to know if the lender he/she is applying with is legitimate or not and ensure that the terms and policies of the lender are transparent. As long as you know what you’re getting into, it is undeniably a fair deal.