There are many advocates as well as critics of payday loans who go with contrasting opinions about the service. The advocates hold the opinion that payday loan provides loan to the people who are facing an emergency situation in a financial crisis. The critics go about saying that this facility is actually a trap that keeps people tied with cruel debt cycles.
In this article, we will cover some of the aspects that shed light on the usefulness of the payday loan. Keep reading on to find out why and how a payday loan can be useful and provide a solution for your emergency situation.
Imagine yourself in a situation where you have no money left in your wallet and suddenly your car breaks down. You have tried everything to get it going but the problem is far beyond your comprehension. So you take your car to the mechanic and find out that you need a couple of hundred dollars to get it fixed. You are completely out of cash and savings and you have no idea if your friends would be able to arrange the money in such a short span of time.
That when a payday loan comes into the play as a savior. You can easily go on to the lenders’ websites and apply for it which takes only a few minutes of processing. You can also visit a payday loan store and can borrow the load within half an hour. Thanks to this easy and fast access, you can easily deal with an emergency situation like the one mentioned above or others that may involve health or other domestic urgencies.
Less tedious process than other loan lending processes
The best thing about the payday loan is that there are relatively fewer requirements as compared to the requirements of other loan processes. If you are in a situation where you are in urgent need of cash, the last thing would want to do is find all your official documents in order to apply for a loan.
Thanks to the payday loan facility, you do not have to look for any sort of document and you can directly apply for the loan which receives a response typically in a few minutes. Payday loan only requires you to meet a certain eligibility criterion that is designed by the lending company, which is quite general.
No past credit history check
Personal loans and other traditional loans usually ask for your credit history to evaluate your paying back records. These loan services only approve your loan application if you have a good credit history. So if you are going through a rough spot financially and your credit history is also not so good, your chances of getting the loans are next to impossible.
But payday loans do not require a good credit history as they do not conduct a hard credit inquiry. If you have a bad credit history or no credit history at all, you are still in luck for the approval of a payday loan.
Gives you extra cash
You never know when unexpected expenses can arrive so it is better to have some cash in stock for emergency times. But if you are short on savings and cash, payday loans give you an extra amount for your late bill payments or other unforeseen financial emergencies.
Unlike your credit cards which do not provide access to the cash facility, payday loans provide access to cash that you can spend according to the requirement. There is no restriction or limitation of using the card only, as you have the amount as cash deposited in your bank account.
Freedom of spending the cash
Many loan facilities like a car loan or mortgage loan allows you to buy a car or a property respectively. With a payday loan, you can spend the loan amount on anything you want as they do not issue you the loan for any specific purpose.
The good feature about a payday loan is that the companies issue a loan only when they are sure you have enough salary to pay it back in a month. And they also make sure that the amount they are lending to you remains within your pay range. So in a nutshell, a payday loan is quite affordable as you can easily pay it back on your next salary.
Ensure a stable credit rating
When you apply for installments or other loan programs, the repayment period is typically quite long and usually span over several months. It may seem beneficial but imagine what would happen if you lose your income source and are no longer able to repay the remaining installments. You obviously would not be able to regularly pay for your installments that can lead to a bad credit score.
Thanks to the short term repayment policy of payday loan, you can easily avoid all such adversities as you repay the entire loan immediately after receiving your next pay.
Another best thing about payday loan is that it requires no several meetings with the officers or a pile of documents. While in other loan types, usually an individual applying for the loan goes on several meetings with the officer and has to gather many official documents before applying.
All this hassle sometimes go in vain if your application gets rejected. With a payday loan, you do not have to worry about going through the tiresome long process as it only requires either one meeting with an officer at a payday loan store or application through the website.
The entire process only takes a few minutes and you do not even have to wait long for the response as they usually get back to you the same day and in some cases within half an hour.
In the time of emergency when you are short on finances and urgently need cash, payday loan comes in handy. Even though it may include higher interest rates and a debt cycle, it still gives you a solution when you are facing a rough spot. In order to avoid paying higher interest rates, it is advisable to repay the loan as soon as you receive your salary.
If you are looking for a reliable lender to apply for a payday loan, you can either visit a payday loan store or get payday loans online with Personal Money Network