6 Major Advantages of Payday Loans

Payday loans can be a great way to access the cash you need in a hurry without having to pull out your credit card. You might have some unexpected bills to pay before your next pay check arrives. You might just want some extra money to tide you over until you get paid next.

No matter what the reason, payday loans can sometimes offer massive advantages over using other types of credit to pay for the things you need now. Here are six of the biggest benefits payday loans have when compared to other credit types.

1.    Convenience
Applying for a payday loan is quick and simple. You can fill out the application form online from the comfort of your own home at any time of the day or night. There’s no need to wait for your local bank branch to be open to get your application in.

2.    Fast Approval Times
It should only take you around 10 minutes to complete the online application form for your payday loan. In most cases, you only need to wait a few minutes to receive your approval.

3.    Fast Cash
If your payday loan application has been approved, you can expect to see your cash sitting in your account within hours. Compared to the length of time it can take to get a credit card application approved and receive your card, a payday loan offers a much faster alternative.

4.    Bad Credit History Accepted
If you have bad credit, it’s likely you won’t be approved to borrow money using other types of credit. However, you can easily apply for a payday loan no matter what your credit history looks like.

5.    No Impact On Your Credit Score
Whenever you apply for traditional forms of credit the lender will notify the credit reporting agencies. If you’re attempting to improve your credit score, the last thing you need is another entry affecting your file. Most payday loan lenders won’t report your new credit, which means you won’t be impacting your credit score negatively.

6.    Short Term Debt
If you use your credit card to pay for the things you want, chances are you won’t pay it all back right away. Many people take months and even years to repay their credit card balances, accruing expensive interest charges along the way. By comparison, a payday loan is intended to be a short term debt only, so you know you’ll pay it off and be debt free again sooner.

If you need fast cash to pay for unexpected bills, consider the benefits of using a payday loan. They certainly offer plenty of advantages compared to other types of credit.

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4 Comments

  • Shelia Moore says:

    I have been trying for 3days now to borrow just $300 as a payday loan. But I just keep getting tossed around having to keep filling out app after app. So I tried an installment loan and had the same problem. I have bad credit so I’m assuming that is why. How can I get back on track and improve my credit if no one will give me a chance? It’s very frustrating.

  • Mary Engelhardt says:

    Iam looking for a $600.00 loan for a fuel pump on my car so I can get back and forth to work.

  • Murrell Gramtham says:

    I need this loan to pay back loans from other individuals, and they now need their loans payed back! A installment loan that I can use to consolidate my other loans would be ideal.

  • nancy horn says:

    need the money to go to md for family reason cant start to pay back until end of nov

Payday Consumer Notice:

APR

The APR of a payday loan varies in each state and depends on the lender, the advance amount, fees and terms of the transaction. The APR in our network of lenders can range from 265.36% to more than 700% on 14 day terms.

Implications of non-payment

Implications of non-payment vary from lender to lender and by state regulations. If you are unable to repay your loan you may have one or all of the consequences listed below depending upon the terms of your lender. Fees may include but are not limited to: insufficient fund fees, administrative fees, late fees, non-payment fees, court costs and legal fees.

Collection Practices, Credit Score Impact

Payday Loans are due and payable in full in one payment at the end of the loan term, unless the Lender offers renewals or other repayment options. Make sure to review the terms and conditions of your lender if you fail to pay on time.

  • Late payments of loans may result in additional fees or collection activities, or both. Each Lender has their own terms and conditions, please review their policies for further information.
  • Non-payment of credit could result in collection activities and your account could be turned over to a collection agency. Each Lender has their own terms and conditions, please review their policies for further information.
  • Failure to pay your loan on time could result in your lender reporting the delinquency to a credit reporting agency. This could result in the lowering of your credit score which could make borrowing more expensive in the future.

Renewal Policy

Renewal policies vary not only by lender but also by state regulations. Every Lender has their own renewal policy, which may differ from Lender to Lender. Renewal fees vary by lender. Please review your state regulations and you lender's renewal policy, terms and conditions.