Typical loans involve cars, homes, or other items which need large sums of money. What if you need something smaller?
Payday loans are great for when you need a little more cash before that next paycheck rolls around.
But why would you choose a payday loan over a different type of loan? There are plenty of reasons. Keep reading to learn about ten payday loan benefits you really ought to know about.
10 Key Payday Loan Benefits to Know About
#1. No Restrictions
Payday loans are highly convenient in that you can use the funds for just about anything. While an auto or mortgage loan limit how you can use the funds you borrow, payday loans don’t. Simple borrow the money, then use it to cover bills or whatever other expenses you have that need paying.
#2. Interest Has Less Time to Accumulate
Payday loans are quick loans. They aren’t spread out over a long period of time. This means you’ll have less time to accumulate interest.
Interest can really add up when your loan is dragged out. Since payday loans are meant to be paid when you reach your next payday, you won’t have to worry about interest building up over months and years.
#3. No Credit Check Required
Many loans require a credit check. If you have a bad credit score, you’re much less likely to get a loan, leastwise one with good terms.
Payday loans offer a way around the credit check because they don’t need them. You won’t need to worry about having bad credit. If you need money now, you’ll be able to get it.
What is do you need? You’ll need to be a U.S. citizen and at least 18 years old. You’ll also need a driver’s license and proof of a monthly salary.
#4. Many Options Available
Payday loans are like other loans in that there are several to choose from. Many providers will offer loans and you’ll find different terms and interest rates with each.
With so many to choose from, how do you know which one is right for you? Proximity, hours, terms, and more may help you make your decision. Companies like Bonsai Finance can also help you find the best payday loans for you.
The amount of payday loan providers offers you the flexibility to choose which one to go with.
#5. Accessible Hours
Many financial institutions are only open during the same hours most people are at work. Payday loan providers are different, though. They’ll likely stay open later so you’re actually able to get there after work.
The extended operating hours make payday loan providers more accessible than traditional loan providers. This allows you to get money when you need it instead of waiting for a time that works for a provider.
#6. Almost-Instant Cash
Loans typically take a while to process, but payday loans are different. You have much less paperwork and regulations to go through, so the money you’re looking for is available to you within hours.
While you may find yourself waiting for weeks or even months for other types of loans, payday loans are available almost instantly. Some providers may take a few days to get the money to you, but others are much quicker.
Even if it did take a few days, a payday loan is still quicker than many other types of loans.
#7. Online Convenience
Did you know that you can complete your entire application for a payday loan online? You won’t have to worry about setting up meetings or waiting in line to talk to someone.
Simply fill out the application from your home, office, school, or wherever else you have internet access. When your loan is approved, you can pick up the cash without any hassle.
#8. Borrow Limits
The amount of income you bring in plays a direct role in how much money you can get from a payday loan. This means you won’t be able to borrow more than you can handle. While you may be tempted to borrow a large amount of money, these limits help you stay within a reasonable debt boundary.
#9. Rewards for Good Performance
If you pay back a payday loan on time, you’re rewarded for your good performance. This means if you need to get another payday loan, you’ll be able to borrow more the next time. Lenders are more willing to lend to people they feel they can trust, so paying on time is always the best way to go.
#10. Interest Rate Caps
While interest rates can be high for payday loans, there are limitations. Many states don’t allow for interest rates that are over a certain percentage.
Fees are also limited in many states. This means it won’t cost you as much to get the money you need.
Keep These Payday Loan Benefits in Mind
Payday loans can be a major help when emergencies come along, so don’t forget they’re there! If you’re ever running short on cash, a payday loan may be the right option for you.
Bills come due, emergency room visits happen, and other issues arise. Payday loans get you the cash you need, and they get it to you quickly and without hassle.
So, keep these payday loan benefits in mind–you’ll be glad you did!
Once you’ve taken out a payday loan you’ll need to pay it back. Read up on our tips for doing just that!