Sunday, July 24, 2016
Payday Loans: What Are The Advantages?
We are always being told that payday loans are something we should avoid at all costs. This is primarily due to their high-interest rates and strict repayment plans. It can be easy to become too reliant on them due to the ease of their application process. Yet despite all of this, many people continue to use them, particularly when faced with a financial crisis. Your car might break down, or you might need quick cash for rent or utility bills. In these cases, it’s not hard to see why a payday loan could be appealing. So instead of viewing them in such a negative light, maybe we should change our mindset slightly. This list includes some top payday loan benefits that are hard to beat.
They are easy to qualify for
Bad credit is something that could prevent you from getting a loan from a bank or credit card company. While you can improve your score, this takes time and doesn’t help your current situation. Thankfully the majority of payday loans companies will lend you the money, despite your current credit rating. So if you need money but have a low credit score, this can make payday loans a viable option for you. Payday loans companies will do some background checks on you, primarily to establish whether you can pay the money back. They will want to know where you work and how much money you make per month. In most cases, you will need to provide identification to prove you are over eighteen years old too. These checks are minor compared to the ones that banks have to do when dealing with loan applications. It gives them confidence that you are a reliable person who has the means to follow their repayment plan. If you meet their criteria and qualify for the loan, you can get your money almost instantly.
It’s a quick process
When you apply for a loan at your bank, it can often take a while to get the results you desire. You have to complete paperwork, talk to advisors and then wait for their final decision and approval of your loan. This can take time and may not always guarantee that you will receive your loan on the same day. In comparison, payday loan companies such as Personal Money Store are renowned for their speed. Whether you apply in person or online, the application process is quick and easy to complete. The checks are not as extensive as your banks will be, and this speeds up the process significantly. You can have the amount of money you require deposited into your bank account or get the cash itself. The timescale will vary from store to store but in the majority of cases, you will receive your money within an hour. This is something that many banks are unable to match, which gives payday loan companies an edge. It also makes it convenient for people who need money in a financial emergency.
There are no restrictions
Another benefit of taking out a payday loan is that there are no restrictions on what you can spend the money on. This provides both flexibility and freedom to choose how to spend it. Many payday loan providers will not even inquire into what you need the money for. Banks, on the other hand, will require reasoning and evidence into why you require a loan. Once you tell them what it is for, you are often limited to only being able to use the loan for that sole purpose. For instance, if you apply for a mortgage, that money can only be used to buy a house.
While the majority of people use payday loans to get them out of a challenging and troublesome situation, others use it for less urgent reasons. Some use it to fund impromptu trips abroad or to help improve their homes. Some people have even used them to pay deposits for wedding venues and photographers. The lack of restrictions means you can spend the money on anything your heart desires. Just as long as you stick to the terms and pay the money back in a prompt manner.
Hopefully, this guide will have to give you further insight and knowledge into why payday loans could be beneficial. While there are disadvantages to taking out a unsecured loan too, there is no denying their convenience and flexibility. Always do further research into the terms and reliability of payday loan companies before applying. That way you will know exactly what you are getting yourself into.