Did you know about 34 percent of Americans don’t have any money in their saving accounts?
If they find themselves in a financial emergency, they don’t have access to cash fast.
When you don’t have savings and need money fast, a payday loan is a great option. Here’s a list of top pay day loan advantages.
1. You Don’t Have to Wait Long for a Decision
Unlike many other types of loans, with payday loans, you don’t have to wait a long time to get a decision. Payday lenders know if you’re requesting this type of loan you need the money fast, which is why they make the process speedy and convenient.
When you apply for a payday loan, you don’t have to fill out lengthy forms and sign your name on every single page. All you have to do is complete basic information in your application, and you can have a decision within minutes.
Once the loan has been approved, you can access your money within hours or the following business day. Some lenders even make the funds available in your account within the hour.
Credit cards and other conventional lenders sometimes make you wait up to 7 business days to make a decision. Waiting for 7 days is not convenient when you were hoping to solve an emergency.
Since payday lenders give you an answer within a few minutes, you can move on and apply somewhere else if you get denied.
If you’re lucky to get approved by a conventional lender, you still need to wait several days or weeks for the funds to become available. This is not convenient for those who are dealing with an emergency.
2. You Can Apply in the Comfort of Your Home
If you’re in the process of applying for a car loan, mortgage, or business loan, you often have to go to the bank and meet with the lender and explain why you need a loan. You might have to go back several times to bring in missing documents or to sign.
Although some payday lenders have physical locations, most of the transactions can be completed online.
If you have access to the internet, then you can complete your payday loan application. Some lenders also have mobile apps so you can apply and make payments from your phone.
You also have the option of uploading any documents you need without having to mail or fax paper copies. With only a few clicks you can qualify for payday loans now.
3. They Ask for Fewer Requirements
As we briefly mentioned before, many lenders have a long list of requirements in order to qualify for a loan. Payday loans don’t ask for nearly as many requirements as other lenders do.
The most important thing you need to have to qualify for a payday loan is a source of income. After all, they want to know you will be able to pay the loan back.
Although the requirements vary depending on the state and lender, the basic requirements are a few:
- Have an active checking account
- Be at least 18 years old
- Show proof of income
- Have a valid phone number
- Be a resident of the state where you’re applying
- Have a valid SSN or ITIN
These are some of the most common requirements you need to meet in order to qualify. You don’t need to have any collateral.
4. Interest Caps
Borrowers often worry they will not be able to borrow money from a payday lender because the interests are too high. However, many states have a cap on the amount lenders are allowed to charge in interest.
5. Qualify for a Higher Amount Later On
If it’s your first time taking a payday loan out, lenders might limit the amount of cash you can access to. Once you pay off the loan and the lender sees you’re a trustworthy borrower, they might increase the amount later on.
For example, if you qualified for $500 the first time you applied and you paid it on time, the lender might increase the amount you can borrow.
Of course, this also depends on your salary and their policy.
6. Great For Emergencies
With other types of lenders, the amount you borrow has to go into something specific. For example, if you take out an auto loan, you know it has to go towards the purchase of a vehicle.
When you borrow money through a payday loan, you can use the money for anything. This is a great option if you have an emergency and you don’t have access to cash fast.
7. They’re Available 24/7
If you have an emergency in the middle of the night, you have to wait until business hours to make any bank transactions. You cannot borrow money at 3 am with a typical lender.
With payday loans, on the other hand, you can borrow money any time you want. Although the money might not be available for a few hours, you can sleep better knowing you found a solution.
8. Your Information is Secure
When you apply for a payday loan, you can be sure your personal information will be safe. Payday lenders are not allowed to share your personal and banking information with other lenders or financial institutions.
9. Amount Limits
The amount you borrow with a payday loan is directly tied to your income. Meaning a payday lender will not let you borrow an amount you cannot pay back.
10. Flexible Payments
Since payday loans are short-term, you can still have the flexibility to pay them fast. Unlike term loans where you have a set number of payments, you can pay off payday loans as soon as you get your next check.
Top Pay Day Loan Advantages: The Bottom Line
As you can see, there are many top pay day loan advantages. For starters, applying for a payday loan is fast and convenient, information is secure, and they have few requirements.
If you have an emergency or need cash fast, payday loans are a great option.