Pay day loans are a relatively recent idea. You are strapped for cash and in need of a little help to get you right through to payday.
In the past the only real viable option accessible to you was credit cards or perhaps a personal bank loan. These two options have a great history but they also get their problems. Charge cards are notoriously simple to increase a high bill due to the way they're designed, they allow you to pay a minimum payment in the hope that you simply stretch out the re-payment as long as possible. This creates more cash for that credit card issuers as they put on charges and interest. Unsecured loans could be good products but they're sometimes nearly impossible to find and wish thorough credit report checks.
So now a new product has emerged to meet the increasing demand where people either can't get charge cards or do not want the hassle. Enter the payday loan. They are a fantastic option to traditional lending options but have a bad reputation. Are they badly as you think? They are extremely popular, surely so many people cant be wrong. Here we have listed five advantages so you can help make your own mind up.
Below are seven advantages of payday loans.
1. The operation is extremely swift and easy. Really quick! A person can apply for the loan and have the money sat in their bank account within 30 minutes... sometimes within a short while. This kind of speed is unheard of in standard banking terms and it is mainly because of the automation which can be used. The customer can apply on the internet and usually only has to complete their personal information after which tweak a few sliders.
2. You can borrow as little as you like. Unlike standard banking products, the short term loan providers will usually lend you as little as $50. For any high-street bank this amount simply wouldn't be possible, they'd see such a small loan as a waste of their time and not worth the investment to begin with.
3. Temporary lending means you don't have a long term problem. Due to the nature from the pay day loan you will know you simply have that debt for any month or so. This has the advantage of knowing that you will not pay off the debt for the following 6 months. Although many people think that if you default you're in big trouble this often isn't true. The pay day loan companies realize that a certain number of people will default and they build this to their business plan, often simply banning the customer by using the service again instead of taking further action.
4. They are more likely to accept you. They have a tendency to defend myself against riskier individuals. payday lenders in many cases are more prone to have a risk on the person than the standard banks are. It is because they're designed to lend small amounts over a shorter period of time the financial risk is seen as smaller so they can lend to a wider range of people.
5. All charges and fees are clearly stated in advance. Due to the bad press that the lenders have experienced in the past the payday loan marketplace is heavily monitored and controlled. All fees and charges need to be clearly identified in advance as well as the representative APR. Which means that you realize exactly how much you will pay back without any hidden charges or unexpected payments.