Thousands of articles and entities write a lot against payday loans yet last year, over 12 million people in the US alone, took advantage of these loans. While it helps over 25 million people each year, how is it that so much negativity spreads around it? Why do only a few articles really support it? As we discuss this topic, we shall try to refrain to write it from the perspective of a payday loan lender and discuss what’s good about it for the borrower and why the negativity is unable to kill its stellar demand.
Moving ahead, we shall be discussing few of the main advantages of payday loans and throw light on why these advantages are able to outweigh the negative publicity since years.
Payday Loans serve everyone (almost)
When you apply for most other loans, you might need a combination of a good credit score, healthy financial history and a steady income. In most cases that you apply for a payday loan however, you’d only need a steady income. Why is this good? Well, firstly, it’s opens doors for many borrowers who would be rejected by other loan products and secondly, the loan is usually so short-term that the income is likely to be everything that is needed for the loan to be paid back.
Payday loans are often available without a credit check, with minimal to no paperwork (completely online processes) and with fairly simple eligibility requirements. For example, you can qualify for a payday loan from us at CashAmericaToday by just being over the age of 18 years, having an SSN number, a bank account, verifiable contact details and a steady income. The fact that these loans are so conveniently available to virtually every adult residing in the US, makes it a very practical choice of loan when bank loans are not an option.
Very Short Term Loans have their own Benefits
Most articles that do not support payday loans, first mention how high the interest rates are. What they conveniently choose to ignore is that when the term of the loan is as low is a few days, what seems high in interest rate percentages over a whole year (APR) is actually not a very huge amount that is paid back after just 10-20 days (the typical payday loan repayment time).
When a person is in need of a particular amount for only a short period of time, it can often make no little sense to take up a longer term loan that finally ends up expensive in absolute figures and burdening in terms of the stress that outstanding debts can end up creating.
Many times, while the APR might seem unusually high, the absolute amount you end up paying back would be lower than a significantly longer term loan with a smaller APR.
Payday Loans are Usually Quick
We have innumerous cases of requests for same day and next day deposits of loans. Emergencies are probably what payday loans are most used for and there aren’t many reliable options out there to address such needs. Payday loans have a high approval rate and as long as you deal with a trusted lender, it tends to be very likely that a loan of the amount that you should be eligible for, is accepted and granted in a matter of a few hours from your time of application.
This advantage could easily be the main reason why most applicants find value in a payday loan and choose it despite any negative publicity.
Payday Loans can be Easily Procured
Sitting in the convenience of your office/home/vehicle, using just a smartphone or a computer, payday loans are available from the best lenders, completely online. The borrower can get the money by simply filling a brief and concise application form, understanding the agreement and accepting the offer – no paperwork, no faxing and definitely no visits to an office or a bank. This is what most applicants in today’s market may want and/or need. Being very short term in nature and usually intended to be closed in a single payback transaction, the loan can be as safe without paperwork as it would be with, and this greatly benefits the customers who need exactly that sort of a solution.
The Value to some, can mean more than the Interest rate on the Loan
We here are not talking in terms of absolute monetary value, but in terms of a perceived value of a service. Imagine you are a person in urgent financial need and no bank would be able to serve you due to a poor credit score or since the need is fairly immediate. Maybe friends can but that can be unpredictable and damaging in unimaginable ways. When you know that your salary is just days away but the need cannot wait that long, the need at times can be so urgent that it makes the money much more valuable than what you lose on interest. This is the single thing most people would be thinking of while applying for a payday loan, and this is simply why we believe that the service is as relevant as the market today has made it.
In the end, it all comes down to this value. As long as a service can be valuable to customers there shall remain a market for it and when the value grows, so does the market. We at CashAmericaToday are thankful to our customers who continuously find value in our services and if you’d like to learn more about us, we welcome you to read and find out about our services.