The last couple of years have encouraged the payday loan market to grow substantially, thus reaching the value of over $1 billion USD in the United States alone. This is mostly due to the numerous benefits that payday loans offer over traditional loans, alongside with the continuous need of money that people from all around the world have on a daily basis.
Regardless of this aspect, there are still numerous people struggling financially, who are not yet aware about the wide variety of benefits surrounding the payday loan market, and how they can profit from it, whenever they face a difficult financial situation that they need to get through. Based on this, most people use payday loans for dealing with various emergencies, such as paying a debt, fixing the car once it breaks down, surprise travelling, having to pay for medical help, the death or marriage of a relative and so on. Therefore, payday loans are defined as small loans that people can get access to quickly, and which has to be paid back within a couple of weeks, once the next pay check arrives. Based on this aspect, it is worth pointing out that the money being lent out through payday loans is significantly lower when compared to traditional loans and requires those requesting it to be employed with either a full or part-time job, in order to prove that they have the financial means to pay back the money once the borrowing period ends.
Apart from these aspects, there are numerous other benefits that payday loan clients can get access to, thus making them one of the best types of loans on the market, regardless of the slightly higher interest rates. Without further ado, here are some of the main benefits associated with payday loans:
1. You get access to the money fast
Unlike traditional, bank-based personal loans, which have to go through several filters and checks before they are approved and sent out, payday loans are all about speed. With this in mind, if you have all of the documents ready, and if you are eligible for a payday loan, chances are that you can walk in and out of an agency’s headquarters with your funds, in less than an hour, which is simply great, judging by the fact that they are mainly meant for dealing with emergency financial situations. This is so due to several aspects. Firstly, the sums are fairly low, which is why most agencies do not conduct a credit check, and only a few documents are needed for the loan’s approval. Once these are submitted, an operator will quickly look over them and deem their authenticity, get you to sign a contract stipulating all of the main factors that must be kept in mind, and then proceed to hand you the money in cash, or transfer the funds to your bank account. The second option usually takes a bit longer, anywhere between a few hours and a business day, still much better when compared to the period of time that bank borrowers must wait.
2. No credit check whatsoever
As mentioned above, as long as you have a proof of income, a valid ID, are at least 18 years old, and are legally allowed to sign contracts, you won’t be needing anything else. Most payday loan agencies will not check your credit score, given the low sum that you’re borrowing.
3. No upfront fees
Unlike personal loans, payday loan agencies usually do not require people to pay upfront fees, which is understandable given the fact that they’re most probably running out of money, and paying a few dollars before getting the pay check isn’t a smart idea, and may put them further into debt. Therefore, all of the fees are paid once the borrowing period ends, alongside with the funds that have been borrowed, which is great news, especially since the payment period is normally right after your next pay check.
4. Loans and debts are all handled by the payday loan agency
In case you don’t opt for cash-based payments, the payday loan agency will handle both the process of transferring you the funds, alongside with the process of debiting your bank account for the funds, and the interest fee, once the borrowing period is over, which is great news from all the points of view, thus putting less strain on the clients, and reducing the amount of effort that they have to put in.
Based on everything that has been outlined so far, these are only a few of the numerous benefits being offered by payday loans to people from all around the world. In case you still have questions, then you can always get in touch with an agency, which will likely answer all of the questions that you may have.