One of the major benefits of payday loans is the speed at which your application is processed. With many companies, you will be given an instant decision on whether you qualify for a loan or not. The money could be in your account within mere hours after that. This is a huge contrast to your standard bank loan which can often take many weeks to process.
Borrow smaller amounts
Most people do not need to borrow thousands of dollars that a traditional bank may offer. Instead, they wish to borrow a hundred dollars or so. There is no sense in borrow more than you need to, right? Payday loans allow these. These are small loans designed to deal with the random life expenses that may crop up on occasion.
Borrow over a shorter period of time
People tend not to want to be tied into long term borrowing over the course of many years. Payday loans are for borrowing over the course of a month or two. This means that you will get rid of that debt pretty quickly.
Ideal for those with bad credit
This is a massive advantage. One of the main reasons people opt for payday loans is that they tend not to care about your credit score. In fact, many lenders won’t pay attention to your credit score at all. All they care about is that you have the ability to pay it back. This means that this loan is ideal for those who can’t work with traditional lenders due to poor credit history.
Remember; payday loans are incredibly useful but there will be strict terms and conditions attached to them. Make sure you do your research when it comes to working with a quality lender, and make sure that you pay that loan back on time. This will help to deal with the majority of issues that may arise.
Let’s be honest, the interest rate on payday loans is not low. There are several reasons why this type of loan is more ‘expensive’, which we won’t go into on this page. It is safe to say that if you are borrowing, you will want to keep the loan as affordable as possible.
When you opt for quick loans by direct lenders, there is no middleman taking a bit of money from the loan. There is only one company which needs to be paid, and the result is a far more affordable loan for you. Sure, in most cases it is going to shave just a few dollars off the cost of your loan, but when you are suffering from financial difficulties every little will help.
Better approval rates
Some people have reported that when they go through a ‘middleman’, they may be told that they are approved for the loan, but when it is time for the lender to send the money out, they are rejected. This can be incredibly annoying and can make your financial problems worse. If you opt to deal with the lender directly, it means that if you have been approved you will always be approved. This is not something that can be snatched away from you at the last possible moment.
If you need money quickly, then going direct is always the best route. There is no information that needs to be passed from company to company. Only one company will be dealing with your loan, which means that they can send out the money that you need sooner as opposed to later.
Obviously, there are advantages to using a ‘middleman’ on occasion, but always opt for quick loans by direct lenders whenever you can. The positives far outweigh the cons. If you need money quickly, then we promise you that this is 100% the route that you should be taking.
The Interest Rate
Due to the short term nature of this type of loan, and the fact that bad credit loans are inherently riskier for the lender, you will notice that the interest rates are going to be a little bit higher than normal. This means that you should only ever borrow the amount that you need to borrow, and you should only borrow when you have no other options on the table.
Take your time to search for quality payday loans, and only ever use them as a last resort.