Television and social media adverts insist on how easy and fast it is to get financing from banks. However, this could not be further from the truth. This article gives you details on Payday Loans: A Quick Solution To A Financial Crisis.
Getting a loan from banks and microfinance is difficult. The eligibility requirements are strict, with no room for negotiations. From credit score issues to the need for collateral and enormous paperwork, it is no wonder that many loan applications are thrown out during the initial stages of reviewing.
Medical emergencies are one of the most common reasons why people want to secure quick loans. Unfortunately, traditional lenders are fixated on your eligibility to take another look at your application.
This is where payday loans come in.
What are Payday Loans?
Payday loans are short-term loans given to individuals who need financing quickly. The repayment period is typically within fourteen days or when you near your next payday. Payday loans are available from most payday lenders like Speedy Cash and online platforms. The money is disbursed to you within 24 hours after approval.
Benefits of Payday Loans
There are various benefits why payday loans are popular.
Allow me to expound.
- Fast processing
Traditional lending methods have a rigorous application process. The time between applying for a loan and approval ranges from days to a few weeks.
Payday loans, on the other hand, aim to cater to unannounced financial problems. These unexpected bills require emergency funds, which payday loans can fund easily. Processing is done in haste. Depending on your lender, you can have access to payday loans instantly or within the day.
- Easy qualifications
The criteria used to determine loan eligibility is one of the things that troubles loan applicants. Banks and other financial institutions have strict eligibility requirements that make it hard for many people to qualify for loans when they need them most.
Banks offer finances based on your credit score. Even with a credit score that is slightly below average, banks will deny you a loan. For individuals seeking personal loans, the process becomes more challenging. They need to prove their income to qualify. Those with an income but cannot document it are frequently denied.
Payday loan lenders are more lenient as their requirements are attainable. They do not consider your credit score but will ask for proof of your monthly income. Also, you might need to produce your driver’s license and your bank account details.
- They uphold confidentiality
One of the main concerns borrowers have with payday loan lenders is the safety of their sensitive information. They are afraid that giving their bank details and Identification details increases the risk of interception of this information by unscrupulous individuals. However, this is not a cause for concern as payday loan companies ensure the confidentiality of your personal information.
Online payday loan lenders have data encryption systems that safeguard their databases from hackers. Additionally, the law prohibits payday loan companies to share client information with third-parties. As such, you can rest easy knowing that your sensitive information is in the right hands.
- You can borrow money depending on your income
Another perk with payday loans is that a higher paycheck qualifies you for higher loan amounts. The payday lender will screen your income against the money you want to borrow. The loan amount should align with the amount of money you make every month.
People with low income will often feel discouraged and see this as a challenge. However, what payday lenders seek is to offer a loan amount that an individual can pay without straining. People have difficulties paying loans that are above their eligibility limits. Considering that payday lenders will only give you money that aligns with your financial situation, you minimize the risks of getting further into debt.
- They are flexible
Some bank loans have limitations. For instance, if you want a small business loan, they require you to produce proof of the business and state the exact purpose of the loan. Furthermore, the loan’s purpose should be in line with your business processes. A car loan is used to buy a car, nothing more than that.
Payday loans, on the other hand, are flexible. There are no limitations, and you can use them for whatever purpose you want.
- Simple application process
In this day and age where digitalization has taken over every aspect of our daily living, traditional lenders still require you to visit their offices to apply for a loan. Besides, before the loan is approved, you will need to go for numerous visits. Considering that we are often too busy, these visits are a waste of valuable time.
Payday loans allow you to enjoy a simple online application process. By visiting your preferred lender’s website, you can follow the simple, mobile-friendly loan application process to get quick cash.
- Available at anytime
Nobody knows when emergencies might strike.
Most traditional lenders are closed during the holidays and weekends. So, what happens when you need money to pay for an emergency medical procedure?
Such emergencies are time-sensitive. Most payday online lenders offer 24/7 services, which allows you to have access to emergency funds whenever and wherever you need them.
- Interest rates are capped by the law
To safeguard the interests of citizens, most states in the United States have capped interest rates. These laws were put in place to prevent money-hungry and exploitative individuals from charging exorbitant interest rates.
By seeking the services of a reputable payday loan company, you can be sure that they operate under the stipulated laws and the interest rates are within the recommended range.
Payday loans are a breath of fresh air to people that need access to cash instantly; those that do not qualify for traditional loans. They are a quick solution to a financial crisis. However, to enjoy these benefits, you need to find a reputable payday company. With a lender that strictly follows the rules in their business operations, you can enjoy convenient, remote, and flexible loans whenever you need them.