I would like to talk about payday loans for minute. I’m sure you have heard of them as they are one of the most popular funding methods these days. But people are saying all sorts of different things about them – some good and some bad. And I suppose there is merit to both because it depends on each individual’s situation and what they need the money for. I am convinced that payday loans are not the perfect solution for everyone. Are they for you? Well, it depends. But let’s take a look at the pros and therefore several reasons to actually use such services.
1. Very fast approval and funding
The first reason to like payday loans is that companies that offer them provide very fast approval and funding. Again, everybody’s situation is different but a lot of the time people need money right away. If that’s the case, payday loans might be the answer. Traditional loans like what you would get from a bank can take a long time to not only apply for but to wait for an answer. An answer doesn’t even mean that you will be approved. Days might go by and you will find out you were denied financing. That means time was wasted and you still don’t have the money you need. On the other hand, with payday loans (of course, as long as you are using a reputable company) and especially direct payday lenders no third party companies, you can apply within minutes and get approved right away. Most of these lenders will give you an answer within seconds or minutes.
Here’s my personal example. I like to travel a lot so if I suddenly have a shortage of money and I know that I just need some extra cash to take care of something, I can rely on payday loans to help me with that. At the same time I know this is only a short-term solution and perfectly okay with that. It’s all about the convenience and these loans definitely provide that.
2. Easy to get approved
Compared to other types of financing, it’s easy for most people to get approved for payday loans. Sure there are certain requirements that an applicant must meet. But these are minimal and are no big deal for most people. By definition, the most important thing that these companies are looking for is that the applicant is employed and is getting a steady income. They’re not credit based which eliminates a lot of headaches for people with poor credit. Again, you want to make sure you’re utilizing services of one of the direct payday lenders and as long as you are, the process of securing financing should be very straightforward and easy.
3. Short-term financing
Another reason is that payday loans are designed as short-term financing. Some people might view this as a disadvantage but in many cases this is actually a good thing. When you take out such a loan, you will know that is going to be due within a short period of time (usually 1-4 weeks) and you will be compelled to pay it off as soon as possible. This is like having a deadline in college. Unless there is a deadline, people tend to procrastinate and put things off. When there is a short deadline, you will push yourself to meet it otherwise you know there can be consequences such as late payment fees. And once you pay off the loan, you don’t have that extra liability hanging over you.