(Newswire.net — April 9, 2019) — Studies have shown that about 12 million people take payday loans each year.
Although they may be discredited due to their high interests, they can be a saving grace in times of emergencies. Payday loans can also save you from fines imposed on delayed payments.
Applying for a payday loan is pretty easy since the only collateral required is your paycheck. This means you don’t have to put your property at risk in case you default the loan.
Here are some other reasons why you should consider applying for payday loans:
1. Instant Availability
Payday loans are one of the fastest ways to get instant cash. Once you provide the necessary information, it usually takes less than a day to get money transferred to your account.
With a conventional loan, it’s almost impossible to instantly know whether your loan has been approved. On the other hand, payday loan lenders will let you know whether or not you’re eligible in just a few minutes after the application.
2. Convenience
One of the most attractive features of emergency payday loans is that they can be accessed at any given time.
Since most lenders know that emergency costs can strike at any given time, they’re willing to lend you at any time of the day. Many payday loan lenders offer their services online making it easier for you to access a loan from the comfort of your home.
Most conventional lenders offer loans in terms of a credit card. This limits you to only purchasing goods or paying for services.
Payday loans are offered in cash, meaning you can spend it on anything. You can use it to fund your small business, pay off another loan, or even try out swing trading to get more money. To define swing trading – it’s a type of fundamental trading where a trader holds a position for more than a day.
3. No Need for a Credit Score
Payday loan lenders don’t rely on your credit ratings to determine the amount to lend you.
However, your credit score affects the interest rates of your loan. This means that with a good credit score, you enjoy reduced rates.
You can also use payday loans to improve your credit score.
4. Access to Large Amounts
Although you’re limited to an amount that’s within your salary range, payday loans can be increased on your subsequent application.
But, this is on condition that you pay your loan in full and on time. Note that the amount you get is regulated by the state laws.
Applying for a Payday Loan Is Quick and Easy
Now that you know the advantages of payday loans, it’s prudent to understand the requirements needed. This goes a long way into ensuring even faster transactions.
Before applying for a payday loan, you need to be at least 18 years old with valid identification. You also need to show proof of income and an active checking account where the funds will be deposited. In most cases, lenders prefer borrowers with a permanent job as they’re less likely to default their loan.
Check out this blog to learn about other types of loans that you can take.