Payday loans are the easiest type of financing available. These lenders work with borrowers who need emergency cash, and because of the immediate need for cash, payday lenders do not impose strict or complicated guidelines. Walk into a payday loan store or submit an application online and you’re likely to obtain an approval. Of course, approvals are subject to meeting certain requirements. However, these requirements are extremely basic. If you’re at least 18 years old, have regular income and an active bank account, you meet the qualifications.
But although payday loans have increased in popularity, with people of all economic backgrounds taking advantage of easy cash, some consumers don’t fully understand the benefits.
Pay your bills on time.
Some due dates are non-negotiable, and if you don’t have the cash, you’ll pay a late fee and perhaps additional interest. A payday loan removes this headache. Apply for a quick cash loan and you can acquire funds to pay bills, such as your rent, car payment, credit card, medical bills or a utility bill. Payday lenders do not ask questions and you can use the loan for any purpose.
Pay for emergencies.
Maybe you have money to cover your bills but lack funds to pay for an emergency, such as an auto repair. Rather than bum a ride from a friend or rely on public transportation, apply for a cash loan and get the money needed to repair your car.
Make a purchase without affecting your credit score.
You might skip a payday loan if you have good credit and reason that you can apply for store financing or a personal bank loan. Both are options. But when you use credit for purchases, this results in a credit inquiry. Each inquiry reduces your credit score. However, payday loan lenders do not conduct credit checks. You can apply for a quick loan and avoid an inquiry.
Get up to $1,000.
The majority of payday lenders issue loans up to $1,000 or $1,500. This is perfect if you need more than a few hundred dollars. If you were to borrow this much from family and friends, you would probably have to contact five to ten people. Payday loans simplify the borrowing process, wherein you don’t have to burden others for help.
Fast and electronic service.
There is nothing quick about personal loans from a bank or credit union. It can take hours or days for someone to review and approve your application, and another couple of days to close on the loan. Plus, you have to visit a bank branch in person to acquire funds. Payday lenders work differently, and many loans are conducted electronically. Complete an application online or in-person, and you’ll receive a response in about an hour. On average, lenders deposit funds directly into bank accounts within one business day.