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Financial stress is real and payday loans can help. Keep reading for 7 key reasons why you should get a payday loan.

If you’ve been strapped for cash, you may be looking into ways to get some money to pay for whatever it is you need. While you’ve probably grown up with the notion that payday loans are bad, they can actually be very useful and can help you out in a pinch in emergencies.

Here are 7 key reasons why you should get a payday loan.

  1. Get Cash Quickly

Even with the quickest bank loans, it can still take over four business days from approval to get your cash in hand. When you have pressing matters that require immediate payment, you literally can’t afford to wait that long.

With a payday loan, once you’re approved, you’ll see the money in your bank account within 24 hours. This enables you to either pay your bills or make that necessary purchase in the right window of time.

  1. It’s a Short-Term Loan

When you take out a normal loan, it usually stretches out over a long span of time. Because of that, the interest rate is very important, since even one percent’s difference can mean hundreds more in repayment.

However, a payday loan is about two week’s long, so even if the interest rate is sky high, there’s only a short period of time you have to pay the interest on. If you compare it to a regular loan with a longer repayment period, you may actually save money by getting a payday loan instead, even if the regular bank loan has a lower interest rate.

  1. You Have Freedom for Your Spending

If you’ve ever taken a look at a bank loan application, you’ll find that it asks you what you’re using the money for. What you put down can affect whether or not your loan is approved.

For a payday loan, lenders don’t care about how you use the money. This means if you’re approved, you can use the cash for whatever you want, whether it’s for food, a new handbag, or to renovate your house.

If the reason why you need money is one that gets rejected by banks, you’ll be better off applying for a payday loan.

  1. You Won’t Have to Ask Loved Ones for Money

You’re supposed to rely on friends and family in times of need, but what if you don’t want to, or can’t? Whatever your reason is, you won’t have to put your loved ones in that position when you turn to payday loans.

Remove the potentially awkward and relationship-damaging situation of asking for money from family and friends. While you’d have to pay interest on a payday loan, at least you can get cash quickly without jeopardizing your important relationships. It’s worth it to pay a little extra to ensure you still have your support system intact.

  1. You’ll Have Many Choices for Lenders

When you get a bank loan, you already have a few choices available to you since there are many established banks with good credit lines on offer. But if you want even more choices, payday loans are where that’s at.

Since payday loans come from private providers, there are hundreds, maybe even thousands of lenders to choose from. While it may require more initial research on your part, this is a good thing, since you can shop around, compare, and go with the lender you feel most comfortable with.

When you have more choices, the higher the chances you find a lender with the terms that work best for your personal situation.

  1. Get Approval with Bad Credit

You may have tried to get a bank loan but was turned down because your credit score wasn’t good enough. But you still need some extra money, and you need it soon.

Again, payday loans come from private lenders, which means you’ll be able to find ones that don’t have as strict conditions for loans as banks do. So if you’ve made a few mistakes and have blemishes on your credit score, a payday loan is a great alternative.

Do note that you always still have to go through a credit check in order to get a payday loan. Any lender that offers no credit checks is not only unscrupulous but also doing something illegal. For more information, Bonsai Finance has a great article that goes into more detail.

  1. Interest Rates Aren’t Always High

The number one reason why people are warned against payday loans is that there’s the notion that interest rates are so high, they’d take forever to pay back. But that’s not true at all.

Payday loans aren’t a one-size-fits-all thing. While one person may get an extremely high interest rate, another may not.

For example, if you have a good credit score, you’ll be able to qualify for payday loans with very reasonable rates. Even those with bad credit scores may have these interest rates available to them. All you need to do is take some time to research lenders and you’re very likely to find one that has an acceptable interest rate.

Get a Payday Loan for Emergency Cash

When you get a payday loan, it doesn’t have to be as disastrous as everyone makes it out to be. The interest rates may be higher than average, but that’s just a small price to pay when you can get immediate access to cash. In fact, you may end up paying more if you let time lapse while you need that money.

So long as you understand the terms and are responsible with your payments, payday loans can be a very good source for a quick, short-term loan to help you tide things over.

If you would like to read more about business, then take a look at our featured articles section.

 

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