During the last couple of years, the popularity of payday loans has risen considerably, considering the fact that more and more people are dealing with financial hardships.
For those who do not know, payday loans serve the purpose of offering customers a quick way of gaining money, whenever they face a financial situation that they did not foresee. As the name suggests, payday loans are normally offered to those who have an active job, and can afford to pay back the loans within a couple of days from scoring it, once they get their new pay check. As the popularity of payday loans has continued to grow, so have the controversies surrounding these types of loans.
In this article, we will talk about some of the main benefits associated with payday loans, while also debunking many of the myths associated with these type of loans.
1. Getting a payday loan is usually quite fast
Chances are that you may have some experience with traditional lending. People normally have to wait for a few days before their application is accepted, alongside with a few more days before they get access to the funds in question. With this in mind, traditional loans take a long time before being offered, which may be an issue for many people. On the other side of the spectrum, payday loans are perfect for those who need cash, QUICKLY. Judging by this aspect, once you have submitted your application, it’ll usually take a couple of minutes, or hours before it is reviewed and accepted by an agent. Once this happens, you will either be sent the funds immediately, or receive them the next business day, hence making the entire process considerably faster from all the points of view. It’s worth keeping in mind the fact that some payday loan agents are able to send the funds over within an hours as long as you provide all of the required details quickly, which is great news from all the points of view.
2. Payday loans are also convenient to get, and won’t cause hassle
When it comes down to traditional loans, people are usually required to send small payments on a weekly or monthly basis, rather than all the funds alongside the interest rate at the end of the term. This aspect, alongside with the numerous meetings that clients have to do with the agents have made traditional loans inconvenient. On the other hand, payday loans are very easy to contract. To kick things off, people have the possibility to get in touch with an agent directly via the internet on, online forms, via the phone, mail, or in person, at the payday loan agency. Regardless of the method that you choose, the application will likely be accepted quickly, and you’ll get access to your funds in no time. While most traditional loans are issued for specific purposes, payday loans can be used for whatever purpose you have. Got a broken car, or an unforeseen trip? Perhaps an emergency medical issue, or need money for a gift or party? Payday loans will likely do the trick, unless you’re in need of larger quantities of money.
3. No credit score check
Not many people are aware of this, but most payday loan agencies do not check for credit. With this in mind, as long as you have a stable, part-time or fulltime job, then chances are that you will be able to contract a payday loan, regardless of your current credit score. This makes payday loans great for those who are having issues with their credit scores, and even have the possibility to increase your credit score, if paid back on time, or used to pay outstanding bills that you’re late on. Do keep in mind the fact that not paying your loan back, can result in a worsening of the credit score, so this is definitely an aspect that you should consider.
4. They teach you to better manage your funds
Payday loans only last for a few weeks and up to a month, therefore they also have the advantage of teaching borrowers to make smarter budgets, and manage their funds better, to make sure they don’t run out of funds, prior to paying back the loan. However, most people should be careful to avoid living pay check by pay check by continuously contracting payday loans. Judging by this aspect, payday loans are only meant to be a short-term solution for financial emergencies, rather than a method of getting access to a continuous source of funding, which is definitely not the case.
Based on everything that has been outlined so far, payday loans offer numerous benefits, which is why you shouldn’t believe the controversies, and contract a payday loan whenever it comes down to dealing with a financial emergency.