Studies have shown that most Americans do not have enough savings to cover emergency expenses. Due to this they are forced to get a loan when they need funds quickly. In some cases getting a traditional loan can be problematic. This is where the payday loan product comes in.
Payday Loans Online Direct Lenders: What is a Payday Loan? A Payday loan is a loan designed for financial emergencies. Most payday loan lenders will pay out loans within a few hours. As these lenders do not have strict credit criteria almost anyone can qualify for a payday loan.
Why Are Payday Loans Better Than Traditional Loans?
Payday loans and traditional loans are completely different products. For this reason they each have their benefits and drawbacks. Unlike cash advance loans lenders can take weeks to process regular loan applications. Traditional loan applicants will also need to fit the criteria detailed below.
- Applicants must be employed.
- Applicants must earn enough to cover day to day expenses and loan repayments.
- Ideally applicants will not already have a large amount of debt.
- The applicant should have a clean credit history.
In the eyes of the bank the ideal borrower is stable employed and earns well. For instance a couple who own a home will be looked upon more favorably than a student with no assets. A large amount of consumers will not qualify for a bank loan. People who do not fit the previously discussed credit criteria will not have any trouble getting a payday loan.
Unfortunately cash advance loans are not suitable for all purposes. People who need to borrow a large amount of money will be better off getting a regular loan. This is because payday lenders expect their loans to be paid back within a month. Loans of more than a couple of thousand dollars will be difficult to pay back in this time frame.
What Are The Benefits of Payday Loans?
There are several benefits that cash advances can provide customers. These are listed below.
- Loans can be processed within a day.
- The application process is simple.
- Applicants will receive an instant approval.
- As credit checks are not required the loan is suitable for applicants with bad credit.
Due to the characteristics of the payday loan product these loans are generally used when applicants need quick cash. Many applicants spend their loan money on unexpected expenses such as car repairs and overdue bills.
You can also visit this website for more details.
How to Apply for a Payday Loan
Once a loan applicant has selected a lender he or she can go to their website. The website will usually have a loan application form on display. Applicants will be asked their name income and a few other personal details. The application should not take more than a couple of minutes to fill out.
If the loan is approved the applicant will be asked to send in some ID and a copy of their bank statement. These documents will be used to verify the identify income and address of the applicant. If all goes well the loan will be paid out immediately.
When the loan has been paid out borrowers will need to set up their repayments. Borrowers need to be aware that payday loans have very high late fees and penalty interest charges. It is in the borrower’s best interest to make timely repayments.
Overall payday loans are a great solution for people who need money quickly. These loans are known for getting people out of trouble. All one needs to do to get a payday loan is choose a lender and fill out an application form.