The Advantages Offered by a Payday Loan
When facing an emergency financial need, one of the best solutions is a payday loan. This loan can help you pay for unanticipated expenses before you receive your salary, and even save you from the penalties of late payments. As the term indicates, a payday loan is payable on your next payday, meaning you will be in debt only for a period of weeks.
Besides that, there are other significant advantages offered by a payday loan in comparison with a traditional loan.
When you apply for a payday loan, feedback, whether favorable or not, will come almost instantly after you forward your application. There is no need to fill lengthy forms that are common with traditional loans. In most cases, the funds will be moved to your account either during your date of application or within 24 hours, depending on whether or no you have completed the lender’s requirements. Lenders strive to maintain a high speed of transaction to remain competitive.
When applying for a payday loan, all transactions will be conducted online. You don’t have to set an appointment with a loan officer or keep calling your lender to get an update on your loan application status. Everything is done on the Internet, regardless of your physical location. With a traditional lender, you need to personally come for several meetings with your loan officer. One important advantage of a payday loan to a credit card is that you can use your credit however you want, because it will come to you in cash.
Getting a payday loan is easier because there are only a few basic requirements that you must satisfy. For instance, the most important requirement is that you have enough reliable income, while traditions loans often need collateral as well. Collateral is not needed for a payday loan. Provided you can prove that you have a stable income that can pay off the money you borrow, you’re all good. Other usual requirements are an active checking account and proof that you are a permanent resident in your state. The common age requirement is 18.
Most payday lenders put a limit to how much you can borrow as a first-timer. After that, you will be able to borrow a bigger amount, depending on the lending policy and of course, your income.
Credit Rating Protection
You may dislike the short repayment period that a payday loan comes with, but it’s actually an advantage when you think of safeguarding your credit rating. With a typical loan, you have about one to two years to pay off the cash you loaned. But no one knows what could happen within that period. You can get sick, lose your source of income and so on and so forth. With a payday loan, you pay the money right on your next payday and that’s it. You have been refreshed.