Payday loan is the most sought-after choice as a stop gap solution when you are short on cash to meet necessary financial obligations or exigencies. It is a small amount and short term loan that is designed to meet your immediate needs and escape the biter consequence of late bill payment, bounced cheques or other dues. The top 10 advantages of payday loans are as follows:
Easy to Qualify:
Qualifying for payday loan is very easy as you are not required to have a good credit background or to pledge any physical asset to obtain funds. A reliable source of regular income and no default on payment in the past are two criteria to avail payday loan or cash advance.
Fast Funding:
There is a little time gap between you apply for payday loan and the same hits your bank account. Some lenders even give one hour guarantee of providing the loan after they approve you the same.
Best for Emergencies:
As the loan is available in less than one hour, so it is the best option when you are knee deep in emergency crisis.
Payback Flexibility:
Payday loan is meant for only short term turbulence. It means you can make a quick payback immediately after receiving your pay cheque.
Loan Amount:
There is a certain limit to payday loan borrowing. The amount you can borrow is subject to your monthly earning. This limitation makes it easier to pay off timely. It helps you avoid debt issues.
Convenience:
Payday lending institutions work beyond the general office hours strictly followed by the banks. This helps you get loans whenever emergency presses you to apply for the same. Online presence of payday lenders has made it more convenient to get loans these days.
No hard and fast rule for loan use:
You can use payday loan for any purpose according to your needs and wish, no hard and fast rules will be imposed on you in this regard.
Legislation:
Many states have enforced stringent rules to protect the borrowers from the high interest rate and fees as well as non-transparent dealing of the lenders. So, before borrowing payday loans, it is always important that you know the specific laws of the particular state.
Capping on Interest Rate:
In most of the states, the government has enforced strict laws regarding interest rate. The lenders are not allowed to charge the rate more than a certain percentage. The strict rule applies to number of application and other charges by the lenders as well.
Security of Information:
When you apply for payday loans, you are required to give some of your personal details. But you can always rest assured regarding the security of your information.
It is true that payday loan is costly but at the same time you will get quite a good lot of advantages with it, some of which have been described above. Both pros and cons must be weighed down so that you can take the right decision if this option is the best workable solution in your case.