One of the best ways of obtaining money when you are facing difficulties is a payday loan. A payday loan essentially allows you to pay off your financial obligations or unexpected expenses before your salary for the month arrives into your bank account.
Payday loans for bad credit even let those who do not have the best credit score going to apply and be accepted for a payday loan – so if you have a bad credit score, you too can take out a loan.
Taking out a payday loan can save you from penalties imposed on late payments as it is payable with a next pay cheque and therefore, you will only be in debt for few weeks at most. You are also able to take out a higher amount of money with a payday loan, based on your salary.
In this guide, we are going to highlight the benefits which a payday holds over other forms of credit.
Speed of Application with Payday Loans
Payday loans come with a quick process, particularly when dealing with direct payday lenders. Most providers today will aim to approve your payday loan application almost instantly, given that you have fulfilled all the necessary requirements and provided the correct information.
The application and approval process is designed to be simple and speedy. It is uncommon to have to fill out a lengthy form as would the case with conventional loans.
Bear in mind that the funds may take a few hours to arrive into your account, or potentially on the next working day, but this is still faster than other forms of credit as they typically take longer to process. For example, if you apply for a credit card, you can be looking at weeks before you can access the funds and this is certainly not ideal when you are faced with an emergency. Even if you do apply, your request may not even be approved so you could not solely rely on the credit of this kind to help you out.
In contrast, when you apply for a payday loan, you are likely to receive feedback on whether the application has been approved or not within the hour, which is extremely convenient and time-saving. Some loan providers even give instant feedback. Thus, if your application is denied, you can get straight onto looking elsewhere for a loan or credit.
Most of the payday loan industry is based online and the applications are purely digital, whether you choose to apply with a direct lender or use a loans connection service online. This means that you do not have to leave the comfort of your own home to obtain a quick and easy loan. You could even send the application from work or practically anywhere that has an internet connection available. Going about getting a traditional loan usually means having to attend meetings or schedule calls with a loan officer.
Another thing which is convenient is that you will receive your loan in cash rather than credit like you would if it were a credit card. This means you can spend your payday loan cash on literally anything you need to, from repairing your car to your gas and electric bill for that month. Whereas, traditional loans are usually issued for a specific reason; for instance, a mortgage is for a home and a car loan is for the purposes of a car.
Only Need to Meet a Few Requirements
It is fairly easy to obtain a payday loan as you are not required to fulfil any kind of criteria which is out of the ordinary. The most important requirement which is asked of you is to prove you have a stable income, which makes sense since you are borrowing on the basis that the loan will be paid back come your next pay cheque. As you can show that you have a consistent and verifiable, then you are pretty much guaranteed to receive an approval on your application for a payday loan.
However, most traditional loans require collateral, which you do not need when you are applying for a payday loan.
Conventional lenders often will only accept applicants with good credit scores and you would not qualify for one if you had poor credit, unless you offered collateral. But, as mentioned earlier, it is possible to get a payday loan with bad credit without putting up any collateral. All you will need for this is to prove you will be able to pay the payday loan back on time.