Advantages of Payday Loans over Traditional Loans
A payday loan is one of your best options if you need money ASAP for an emergency. It allows you to take care of any expenses that must be immediately covered before your next salary arrives. With this loan being payable with your next paycheck, you don’t have to worry about penalties for late payments.
There are many advantages offered by payday loans over more traditional types of loans, but the following are the most important:
If you apply for a conventional loan, it will take longer for you to get your loan. Usually, you will have to wait a number of weeks to get the funds, and that’s not good if you need the cash instantly. Additionally, there is no assurance that you will be given the loan. Once you have submitted your payday loan application you will usually know if it has been approved or not within a matter of hours. Some lenders will even give you feedback right then and there. Should your application be disapproved, you can immediately look elsewhere.
Finding Similarities Between Lenders and Life
What Do You Know About Lenders
Payday loans are generally processed on the Internet. You need not book an appointment with a loan officer, and it’s unnecessary to keep calling them just to be informed about your application’s status. Just send in your application on your website and wait for their response.
One of the reasons payday loans can be approved instantly is that there are very few requirements. Basically, you just have to provide evidence that you have a stable and verifiable income source. On the other hand, you may have to provide a collateral to get a traditional loan. Definitely, this is unnecessary when you’re applying for a payday loan. You only have to prove to the lender that you are capable of paying off the amount you plan to borrow, and they will oblige. There might be other requirements, but none more complex as establishing permanent residence in your state and that you have an active checking account.
As a new applicant, the amount of money you can borrow will be limited, but this can grow bigger on your future applications as long as consistently make on-time payments. Sometimes, you can even get twice as much on your second loan as you received on your first loan.
Credit Card Protection
Lastly, a payday loan’s short repayment period may come to you as a disadvantage, but the opposite may be true – it helps you maintain a good credit rating. You are usually given one or two years to repay a traditional loan, and we know that anything can happen within that span of time. You may fall ill, lose your job or be in any situation that prevents you from paying off your entire loan. This is where payday loans make a difference as far as keeping a clean credit record is concerned.