Dealing with a financial emergency is not easy. However, a payday loan can go a long way in ensuring that you deal with an unexpected financial situation such as a medical emergency in an easy way. It’s always important to weigh the pros and cons of taking a particular loan before you fill the loan application forms. Although the interest rate charged on payday loans is slightly higher, it remains an excellent option for people who need super quick cash. Here are some of the top benefits of payday loans.
Most lenders will grant the loan instantly whenever you provide all the required information. The application procedure is quick and easy. Unlike the conventional bank loans, you don’t have to fill numerous forms and wait for the processing which can take weeks or even months. In this case, the application process will take you a few minutes, and the money will be credited to your bank account within a few hours. You don’t have to wait in a queue for your loan application to get approved before the loan is granted.
No Collateral Needed for Your Loan Request to Be Approved
The only guarantee of your repayment for the loan dealer is your paycheck or proof of an alternative stable source of income. Unlike the traditional bank loans, the payday lenders won’t ask for collateral before approving your loan request. Furthermore, you don’t have to explain how you are going to spend the money. You are at liberty to spend the borrowed amount as you wish.
Your Credit Rating Is a Non-Issue
Your credit rating doesn’t determine whether you qualify for a payday loan or not. You can still get a loan even if you have a poor credit score. The lender isn’t interested in your past financial history but your ability to pay the loan. In fact, you can use a payday loan to protect your credit score since you will be required to repay the loan within a short period hence chances of defaulting are minimal.
Accessing a payday loan is easy and straightforward since you only need a few basic requirements. The essential requirement is a paycheck or a stable source of income. As long as the lender can verify your source of income, you are guaranteed to have money. Unlike the traditional bank loans that need collateral, a stable source of income is sufficient to grant you a payday loan. The other requirements include an active checking account, and you should be above 18 years.
Payday Loans are Available 24/7
A financial emergency can occur at any time of the day and night, and most of the payday loan lenders are aware of this fact. Most of the online merchants operate 24 hours a day, seven days a week. Customer requests are handled right at the time they are sent. This means that you can apply for a payday loan anytime anywhere.