What do you do when you have a dire financial crisis and no emergency fund to fall back on? Opting for a short term payday loan can help quickly get you out of a jam.
Find out how you can use short term payday loans to help manage your finances when you don’t have other options.
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Why Payday Loans Are Good…
Life is uncertain and so is the financial situation of a person. And more, unfortunately, unpredictable financial situations can be more stressful.
A sudden loss of employment, urgent home or vehicle repair, unforeseen medical expenses, and unpaid bills might call for a financial emergency and you will need instant cash to manage your situation.
Under such circumstances, among the various financial options, a payday loan acts as a quick-fix solution when you have no other means to fund such an emergency.
So, let’s have a look at how payday loans can help you manage your finances.
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What Is A Payday Loan?
Payday loans, also called “cash advance loans,” are a small amount of money given as a loan. They can provide you with instant cash, which is then due in a single payment on your next payday or a period of two weeks to one month. Thus, a payday loan can be used as a short-term solution for your financial crisis.
How Can Payday Loans Help Manage Your Finance?
Payday loans offer various advantages over traditional loans. This makes it one of the most sought-after loan options for people with dire financial needs or those that don’t have stellar credit.
Some of the ways through which payday loans can help you are listed below…
Online application process – The possibility of applying for online payday loans makes the payday loan process a breeze. It helps by saving you time and effort.
There are a lot of lenders who offer 24/7 payday loan services. If you Google “24-hour payday loans near me”, you will get a list of all the payday loan lenders in your area offering online payday loan services.
Quick cash – When you are in financial hardship, a payday loan can provide you the required money faster than any other financial options. Even if you apply online, the processing time is minimal and in most cases, payday loans are funded the same day you apply for them.
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Fewer requirements – Unlike any other loans, payday loans do not require a lot of documents for loan approval. You just need to be above 18 years with a government ID card, a source of income, and valid bank details. This is the main reason why many people prefer payday loans to manage their finances in a crisis.
Fast response – Other forms of loans can take a few days to weeks for approval. Whereas, payday loan lenders process the applications swiftly and respond to your request within hours, even if you are denied. And if your loan is approved, the money will be quickly transferred to your bank account.
Hooray! ? Financial crisis averted…
Your credit score doesn’t matter – A good credit score is expected from banks to approve your loans. Needless to say, not everyone has a good credit score. Thankfully, payday loan lenders do not consider your credit score in the decision making process. Therefore, you can get guaranteed online loans no matter what your credit score is.
More convenient – With the option to apply for a payday loan in the comfort of your home or workplace, this gives you more convenience. Without making many phone calls or expecting help from family or friends or bargaining with the bank manager, you can get the required amount instantly at your convenience.
Perfect for introverts and others who don’t want to aire their financial situation to others.
Unsecured – Payday loans don’t require you to pledge any property and thereby the lender cannot seize your property if the loan amount is unpaid.
Although, don’t go into a payday loan expecting NOT to pay it back! There are certainly consequences for that.
Short-term debt – When compared to other types of loans, payday loans are short-term loans. You need to pay them within a few weeks or months and mostly on your next payday. It is made as a single payment and not installments which reduces your debt cycle.
Easy to understand terms – Recently the government defined the terms for payday loans. This includes: how much amount to be given, what should be the interest rate, repayment terms, and others, which makes it less complicated and reliable.
No hidden rates – Though payday loans come with a MUCH higher interest rate, the interest rates are fixed and there are no hidden fees. (It’s best to pay them back ASAP to avoid astronomical interest fees). The amount you borrow, the amount of interest, and your repayment date everything will be clearly mentioned in your loan document. So make sure you read everything carefully before you sign anything.
Unconstrained spending – The loan amount you obtain through a payday loan can be used for any purpose as you wish. You can use it to clear your dues, pay off another loan, or to solve your short-term cash flow problems.
However, a word of caution…
Make sure that you can pay back the amount you are borrowing within a short time. Also, don’t use payday loans for wants, stick to necessities.
Adjustable loan amount – Although your credit score does not have an impact on getting a payday loan, the payday loan lenders may choose to offer you a higher loan limit at a lower interest rate if you have a good credit score.
When you require a small amount of money for a short-term, Payday loans can serve as the best solution. As long as you have the ability and income to repay the payday loan and its interest, you can go for a payday loan option without any second thought.
This is a guest post: Harold Mitchell, is part of the editorial team at the Payday Locker. We offer Online Payday Loans in Michigan. Payday locker is a third-party agent that helps you connect with a lender and get money instantly.