A payday loan is an effective means of raising quick cash to solve your financial emergencies. The loan can help you pay for unexpected expenses before you get the salary. In fact, it will save you penalties that are imposed on late payments. Your payday loan is payable in the upcoming paycheck.
You should note that lenders approve applications for the payday loans nearly immediately when you submit the required information. In fact, the application process is quite quick and simple. You do not have to fill lengthy forms. In most cases, lenders take a few hours before transferring the funds to your account. You can receive the money on the same day or the next day.
All the interactions and processes involved when you apply for a payday loan can be done online. It is not a must to book an appointment with loan officers. It is easy to send an application from your office or home. Getting a traditional loan involves meetings with the loan officer. For instance, you can get money to pay for your electricity bill or even repair your car. However, if you are applying for a traditional loan, you must have a specific purpose.
The truth is that getting a payday loan is quite easy as you only meet a few requirements. Usually, you are required to have a stable income. Ideally, your income should be verifiable and consistent. On the other hand, traditional loans need collateral. For a payday loan, you must be above the age of 18 years.
Protect Your Credit Rating
Although the short repayment period seems like a disadvantage, it is equally an advantage as it protects your credit rating. When you apply for a traditional loan, you will have two or three years to repay it. You should note that if you default on your loan, you worsen your credit rating. In fact, you will incur fines and penalties that increase the cost of the loan. Therefore, a payday loan is a convenient and quick way of handling financial emergencies. That is because you can access the cash within a few hours, even if you have no collateral or have bad credit.