Payday loans are designed to be short-term loans that people take out when they need to get some cash in a hurry. The loans are issued at very high interest rates, but the amounts people borrow, and the short time period for which they have the loan, mean that the amount of money they have to pay back is not much more than they borrowed.
If you are thinking about borrowing money, you are probably already aware of payday loans and their beneficial effects. It’s worth reminding people about the benefits of payday loans. They include:
Hassle-free application process
If you want to borrow from a traditional financial institution, you have to fill in detailed application forms even for small loans. These forms are intrusive, and they ask for details about household income and expenditure. About the only thing they don’t ask is the name of your pet.
Payday lenders only need to know a few details about you. You have to have a regular income stream, and the lender will want details of that. This could be from an employer, a pension or any other benefit. You also need to state your gross monthly income. You need to provide your name, address and contact details, and a reference, such as driver license number, as proof of your identity. Finally, you must provide details of a bank account because your loan will be transferred directly into it.
It takes just a few minutes to complete the online application form. Once you submit your application, you will get a decision almost immediately. There can be no easier way to raise money quickly.
No credit score needed
Payday lenders do not bother with your credit score. They do not care about your credit history, only about your ability to pay back the money they lend. Even if you’ve been turned down for credit before, you can still get payday loans.
Almost instant cash
Once you are approved, your money will be sent immediately. It could be in your account within one hour, but it usually takes 24 hours.
These are just some of the advantages of payday loans, and their beneficial effects. They are a perfect option for people who might not be able to borrow money elsewhere. They are also great for coping with unexpected cash shortages. Also, provided you pay back your loan on time, the cost of a payday loan is very reasonable.