Why Payday Loans Are a Life Saver!
Payday loans are usually due by your next paycheck. This means that you’ll only be in debt for only a few weeks. These loans have many benefits over other types of credit. The main advantages are below:
Easy to apply and qualify
The process of getting a payday loan is generally simple. You apply and qualify instantly and your loan is disbursed within a day or two. In most cases, you’ll need to show that you have adequate income to cover the loan on payday.
You’re Protected by Legislation
Most states have put laws in place that ensure that you’re protected from high-interest rates and fees. Interest rates above a certain percentage and other fees now have a limit.
Some payday loans come with exorbitant fees, so it is important to know the laws in your state before approaching a lender.
Payday loans usually have no restrictions on how you decide to use the loan. This means that you can use the money for whatever you choose.
Payday loan lenders are most times available after work hours so you can get a loan in an emergency. Having an online presence also ensures that you can apply for loans online at any time.
No Credit Check
Payday loans are not only quick and convenient, you can get a loan with bad credit and no collateral. You can get a payday loan for any purpose as long as you pay back when you receive your next salary.
Payday Loans Are a Life Saver!
If you’ve ever been in a situation where cash was short and a few hundred dollars would have been a life saver, then you’ll appreciate the value of a payday loan.
Just like every financial product payday loans have a downside too. The interest rate is usually higher than a regular loan, but when you consider how useful it is during an emergency, the higher interest rate fades in comparison.
Many payday lenders limit the loan amount that a new borrower can get. This means that new borrowers can only get approval for a certain amount that is inline with the lender’s policy – in respect to first timers.
When the first repayment is made, the lender will typically increase the amount accessible on the next application. This is like building a good credit score.
For example, if you apply for $200 and pay it off on time, the lender will increase the limit to $500 and it will gradually go up to a level that reflects your salary or the lender’s policy.
Paying your loan off on time will not only be good for your credit rating, but it will also enable you to qualify for a higher loan amount in the future. So even if you don’t need a payday loan right now, you can prepare for a time when you may need one by borrowing and repaying on time to build your credibility with the payday lender.