In a difficult financial situation, people usually resort to the first means of cash available. In most cases, it involves taking a loan or Speedy Cash payday loans. But a loan almost always comes with strict terms and conditions. Your credit score, your payment history, and the amount of debt you have are taken into consideration when you apply for a loan.
1. Waiting is not part of the deal
Some loans can take months to be approved while depending on your situation certain types of loans will never be approved. If you are in need of urgent cash there are only a handful options available. One of them is payday loans.
This is basically an amount lent to you on the condition that you will pay it back with interest when you receive your wages.
2. They are needed
Payday loans are not among the traditional types of loans available, and have always been known to have a high rate of interest, the reason why consumer advocates regularly warn people against them. But payday loans continue to exist and this shows that there will always be people who utilize them.
Over the years payday loans have earned a bad reputation because of their high rates of interest. But they also have several benefits that help you in a difficult financial situation.
3. It is fast
Unlike traditional loans that require a long time for approval a payday loan is quick and easy. There is no long drawn process, no requirement to fill up lengthy forms, or to wait endlessly for the money to show up.
When you apply for a payday loan you are usually approved the same day and get the funds within a few hours. Because there is stiff competition in the payday loan market lenders always try to be quick in order to attract more clients.
Unlike most conventional loans, payday loans are very straightforward. For example, you borrow $500 with an interest rate of $75. When you receive your wages, you pay back $575.
4. It is convenient
The entire process of payday loans happens online so you do not need to find time to go and meet the lender in person. You send over all the required documents online and the lender transfer the funds to you online.
Another huge benefit of a payday loan is that the funds are in cash and you can use it for any purpose, from paying utility bills to buying groceries to paying rent. There is no restriction on how you can use the money that you borrow.
5. It has few requirements
As the name suggests, a payday loan depends on your income. Therefore as long as you are able to prove that you have a stable source of income you can qualify for a payday loan.
More often than not, your credit score, your payment history and your amount of debt are not considered at all.
Regardless of what job you do and how much you earn, as long as you’re able to show that your income is stable you will qualify for a payday loan. This is a huge advantage over conventional loans with strict terms and conditions.