You cannot foresee what will occur in life. Sometimes car repairs, home renovations, and shortages for rent, food, and utilities can raise their ugly heads when you least expect them. People often turn to family, friends, and financial institutions for assistance in occurrences such as these but sometimes these are not options.
As a result, payday loans are often utilized in emergency situations. These types of loans allow you to receive a cash advance to pay for unexpected expenses before you get paid and the amount is paid back when you receive your paycheque. There are many advantages to getting a payday loan and reasons why this option may be just what you need.
When you need cash fast, you want to be able to get it without making an appointment with a loan officer or waiting days to hear about an approval for an increased limit on a credit card. Even if these processes were faster, the lenders do not see any advantages to giving you a smaller loan and are less inclined to assist you.
With payday loans, you can attend any location that provides this service and get the amount of money you need with a government-issued piece of identification, pay stub, and pre-authorized debit form for easy transfer to your bank account. Many companies that offer payday loans also allow customers to apply online meaning you can get the assistance you need without even leaving the comfort of your home. If approved, the money will be transferred to you that day, allowing you to take care of your unexpected expense right away.
2. Save you money
As long as you repay the full amount when you get paid, payday loans can save you money in the long run. If you do not have money to pay mortgages, rent, and utilities, you could end up paying more in late fees, overdrafts, credit card fees, and for bounced cheques.
Payday loans guarantee that you have the money to pay for your expenses and allows you to avoid such penalties. While your loan is outstanding, you will not be charged any interest or fees in addition to initial charges.
Emergencies can happen suddenly and as a result you may need money fast. The speed in which a payday loan can be processed and approved is a major selling point for customers. As mentioned previously, you do not have to wait for appointments with loan officers or approvals from other lenders to be approved.
A payday loan can be given almost instantly by attending a location or applying online. You receive the full amount of the loan that day, putting you in a perfect position to pay for any expenses you need to. To receive a payday loan, all a customer needs to prove is that he or she has a source of income and a chequing account, making the process quick and practical.
4. No problems involving credit score
Payday loans are also appealing to people because approvals do not depend on credit scores. While traditional loans are approved based on applicant’s credit scores, companies that give payday loans do not perform credit checks. All that is needed is a paystub to prove the ability to pay back the loan and a chequing account to deposit funds into. Getting a payday loan will not affect your credit score either.
Although it is called a payday loan, it is considered more of a cash advance that you will pay back when you get paid, meaning it is usually not recorded on a credit report. However, failure to pay the full amount back may result in the company issuing the loan sending the account to a debt collector who may end up reporting your case to credit bureaus.