A payday loan is a short term loan that enables you to sort out emergency cash needs and then you can pay it back upon your next paycheck. Payday loans are termed as high cost and charge triple the amount of annual percentage rates. The payment is normally within two weeks.
Some providers give payday loans for poor credit scores. In this article, we will look at some of the in-depth benefits of payday loans as an alternative financial choice.
A payday loan is fast
Your fund will be transferred by the lenders within 1-2 hours upon request to fix emergency issues like car repairs, broken boilers, and rent. However, the seed of receiving the loan depends on whether you have fulfilled all set criteria, and if the information you have provided is correct. If you have been rejected, you will be notified of this status quickly and you can then go ahead and look for other lenders.
The application process has been designed to be easy. Applicants can receive a fast decision upon applying online and subjected to additional affordability and credibility checks. They will be able to receive their funds on the same day.
Other forms of payment may take you weeks to receive payment for emergency purposes which are quite long. Other forms of finance like a car loan or secured loans can take time like several days to be funded.
Payday loans are discrete
If you want to borrow money payday loans are always very discreet. You need direct cooperation with a lender and you also need to use your real name. There is no need of asking a family member or bank manager for money it saves your reputation and also helps you take care of your immediate financial needs.
Payday lenders are nowadays online and the application process has been automated as the industry slowly moves from the in-house application forms. What this means is that you do not have to leave the comfort of your home to fill some paperwork in an office. You just need to have a mobile phone and an internet connection. Traditional loan application required you to schedule a meeting in advance or call a loan officer.
You will also receive the money in cash rather than in credit form. This cash form enables you to sort out your emergencies quickly.
The Financial Conduct Authority has cracked down on the payday industry which was plagued by data selling brokers, high fees. These rules and regulations have led to only the most reputable companies left to lend payday loans. Caps put in place by the authority ensure that individuals do not pay back double the amount they borrowed. So if you are looking for a reputable payday company you should rest assured that your information is kept safe and that you will not be charged more to repay your loan.
Increased borrowing option for repeat customers
For customers who have paid on time can borrow an increased loan in the future. This is however based on if they are still employed and they are not worse off in their circumstances. Some companies can lend first borrowers between 300 pounds to 400 pounds and an increase of 2000 pounds to 4000 pounds based on their creditworthiness.
This is likely to happen if you have increased your loyalty score with your lender including your history of payment. Upon defaulting on your older payment this makes it hard to borrow again or even getting a higher amount of loan.
In conclusion payday loans can come in handy when in a financial crisis. However, it is important to look for a reputable company like PaydayMe who has been connecting people with lenders for installment loans, payday loans, or personal loans.