In a payday loan, your moneylender will use your paycheck as collateral to lend you small amounts of money. Unlike personal loans or home loans, you do not need to borrow more money than you need. Moreover, they can be paid off in a short period. There are other advantages that payday loans have over other loans. Here are the top 5 reasons to take a payday loan.
If you need to buy something that has been long due, a payday loan is ideal. If you apply for a loan without a robust credit score, the application will most likely be rejected. The reason is that banks conduct thorough background checks before granting a loan. If you haven’t been able to build a good credit score so far, you may still get a payday loan. Licensed moneylenders less concerned about credit score and more about your current income status. However, be sure to make timely payments to your moneylender.
Payday loans are meant for small expenses that cannot wait until your next payday. Therefore, do not expect to get a loan amount more than what you earn. Licensed moneylenders never offer more money than what you can afford to repay from your salary. That means, the loan about would be well within your financial ability and thus there is no chance of loan sharks harassing you for non-payment or delay in repayment. Moreover, borrowing from licensed moneylenders keeps you on the right side of the law.
Payday loans are affordable because the loan amount is not very big. Despite a relatively high-interest rate, the total repayment amount remains well within your budget. Moreover, borrowing them from a licensed moneylender means that there are no hidden costs. You usually would not miss the repayment and thus avoid paying extra amounts in the long run.
If someone in your family faces a financial emergency like medical, you cannot afford to waste any time. The same goes if someone requires travelling on an urgent basis. A payday loan application takes a few minutes to complete. The approval is fast and the amount is disbursed within minutes upon approval and completion of a loan contract. Payday loans are ideal for emergencies. You can apply any day of the week, 24 hours a day with your online application. Moneylenders ask for fewer documents and hence the approval process is quick.
Unlike many other loans, payday loans can be used for any purpose. Your moneylender will not be concerned about how you spending the loan amount. For instance, you can use the amount to deal with a medical emergency. If your car breaks down one fine day, you can pay the repair bill using a payday loan. Some people pay credit card bills using payday loans as well.
Payday loans are extremely safe and convenient when taken from a licensed moneylender. You just need to have the legal age, a bank account, and a steady source of income.