What are Payday Loans?
In these trying financial times you are constantly hearing stories of loan defaults, foreclosures and other negative stories of people who have fallen on hard times. Even payday loans have come under fire even though they can be a quick and easy source of cash when you are confronted with financial difficulties. Contrary to the negative press you may have read there are definite benefits to payday loans when they are used in a responsible manner.
Some of the major Benefits of Payday Loans
Money is typically available within next business day
You can apply and be approved online
Amounts from as little as $100 up to $1,000 are available
While a traditional personal loan will get you better interest rates and repayment terms in the majority of cases, some people are unable to qualify for these personal loans from banks and other traditional lending institutions. Maybe they had a bankruptcy or prior trouble with payments on a credit card or car loan that has affected their credit rating.
You Get Your Cash Quickly
Payday loans have a streamlined process and once your loan application is approved, the money typically shows up within one business day. No messing around with endless paperwork and loan officers at the bank only to find out a week later that your loan application was denied. Payday loans are designed to get you cash and to get it quickly, typically within one business day.
Online Application and Approval
If you want to get a personal loan from a bank you have to physically go to the bank to apply. The whole process of traveling and completing the bank paperwork could end up costing you hours and hours of your time. Most of us lead busy lives and are not able to get away from our jobs and personal commitments for 4-6 hours to go and apply for a loan, especially if we are under stress from an emergency situation.
Payday loan companies have gotten around this by making their application and approval process available online, 24 hours a day. As long as you have a computer and an internet connection you can apply for a payday loan quickly and in the privacy of your own home. Now doesn’t that beat wasting half your day traveling to the bank and dealing with stuffy loan officers?
As you can see, payday loans can be a help in a variety of situations. This short article has only touched the surface of the uses for these small short term loans. As long as you are a responsible borrower and repay the loan with your next pay check you have little chance of getting into any troubles using payday loans and every chance of reaping the substantial benefits that they provide. Be sure to borrow responsibly and only request the amount that you need to meet your short term obligations.