Payday loans can be a lifesaver for people who are struggling financially. Also sometimes called a short-term loan, cash advance, short payday loan, or payday advance loan, they are an easy, quick, and effective solution if you need cash right away.
Many people turn to payday loans because of the many advantages they offer. Below are 5 benefits of payday loans.
These days, it is not difficult to find payday loan companies, online payday lenders, or even payday lenders for bad credit. Not only are there plenty of physical payday loan offices, there is also an abundance of payday lenders online. To get a short payday loan, you can either visit a payday loan office in your area or apply for a payday loan online.
- Minimal Requirements
To be eligible for traditional personal loans you must submit all sorts of identification and documents in order to prove that you are able repay the loan. Usually, you’ll need to send copies of your Social Security number, driver’s license or other photo ID, as well as payslips or other proof of income. But to qualify for payday loans, you won’t need to do all of that. In general, payday loan providers only require their applicants to be at least 18 years old, have a Social Security number or other government-issued identification, have a regular income source, and have a bank account. These requirements also apply to payday lenders for bad credit.
- Fast Processing
Compared to traditional loans, payday loans can be approved or denied in a much shorter period of time. You will likely get a response to your short payday loan application in around 24 hours. In fact, many payday loan companies can process an application in less than an hour and deposit money into your bank account on the same day. With how quick the processing is, it’s not surprising that payday loans have become very popular during these difficult and trying times.
- No Credit History Check
If you are hesitant about applying for a payday loan because of bad credit, you will be happy to learn that payday lenders don’t do hard credit inquiries. Even if you have had a bad experience applying for traditional loans in the past due to a below-500 credit score, you will have a much better chance of approval with payday loans.
- No Collateral
If you have a mortgage or a car loan, the lender can seize your property if you are unable to pay what you owe. This is not going to happen with a payday loan, as these types of loans are unsecured. However, failure to repay a payday loan poses different type of risks such as additional fees and exorbitant interest. The lender might also send your debt to a collection agency, which will negatively impact your credit score. They could also take you to court and if you try to get a loan again someday, it might be difficult to get approved.
Source: Cash today title loans.