There comes a point in everyone’s life when a quick financial infusion is necessary, and borrowing from a friend or relative is not an option. You may not have that one person you can rely on for borrowing, or you just want to avoid burdening people around you with your financial problems. Then you start thinking about trying out payday loans, but you have doubts if it is a good solution or not. No wonder, since the first thing you hear about these loans is higher interest rates. This fact somehow puts into the shade all other benefits.
However, if there’s an emergency you’re experiencing these can come in quite handy. With careful planning of how you’ll be returning the loan, and assessing if the interest rates will put you in more financial trouble or not, this is a convenient way to get a short-term loan. Another thing you should be very careful about is finding a reliable service to use. Most of these loans are available for applying online, and according to Mr Payday the process is quick and easy.
In order to support what we have stated, this article will give you all the benefits of payday loans. But first, let’s start by explaining a bit more about what they are.
What are these loans?
The most important thing to be familiar with before deciding to use such a service is related to what the concept is and how it functions.
What we’ve already mentioned earlier is that these loans are short-term, usually meant to be paid back as soon as your next salary arrives. This means that you’re borrowing money that needs to be returned in a maximum of two to three weeks, but the deadline can be as short as two days as well. You’re also signing a contract that states the interest rates and other fees related to the loan.
The amount people opt for borrowing shouldn’t exceed their salary amount, which is exactly why paying back shouldn’t be such a problem. After all, you’re borrowing just until your next salary arrives. As opposed to regular bank loans, when poor credit history can influence whether you get approved or not, the only thing that can be a risk, in this case, is bad employment history.
So, our advice would be not to opt for these loans unless you calculate you actually can return the money by the deadline stated in your contract because it can have a negative effect on your credit score. This means way more financial problems in the long run. As for higher interest rates and other fees, we’ve already mentioned they are a bit higher. Now may be the perfect time to mention all the benefits of payday loans.
1. They’re quick and convenient
Like it was said earlier, they can work wonders if you know how to realistically plan your finance. Obviously, they work best when you’re in need of quick money because the whole process can be finished online, in approximately half an hour or so. The details are verified and checked quickly, and if everything is clear with your credit history and income, the amount will be on your account in no time.
One of the best advantages is that such loans save you a lot of time and frustration because the procedure is simple and quick. This goes especially if your credit history is good. If this is the case you can expect a very good deal from a lender.
The process requires you to fill in an online form and submitted, and that’s about it.
2. Requirements are not so many
Exactly because they are short-term loans, being paid out in a matter of weeks, they are designed in a way to have very few requirements you should fulfill. The most important one is a positive credit history, but aside from that most will require you to have a stable job and regular salary.
There’s also one requirement related to age, according to which you should, of course, be at least 18 years old. If all of these are true to you, then you are more than eligible to apply for one.
3. Managing payday loans is easy
Compared to other loans, these are quite easy to handle even for those who have a poor credit history. This is because everything is done so quickly, which saves from detailed checking and having to put personal records at risk. That’s why people like these services so much.
Having a long-term loan sometimes feels like you’re being shackled and sentenced to pay back what you’ve borrowed for too much time. On the other hand, short-term loans require you to hold on just a little while, and everything is in order, just as it was before. The risk of experiencing something inconvenient that will change your whole financial situation for the worse is a lot less.
4. Interest rates
As we’ve mentioned in the introduction, the one applying for such a loan needs just a little extra money to make it to payday. When there’s something urgent to be handled. So, amounts are not as big as they tend to be with long-term loans. We’re talking a couple of thousand or hundred dollars only. Hence, the interest rate cannot be so enormous as to put your whole financial situation in question.
5. They are for everyone
Even though they do consider your credit history and employment status, there are other ways you can prove to be able to pay back what you’re borrowing. This fact makes these loans perfect for anyone in need of quick cash.
For citizens of Canada, loans like this can be lifesaving, when something needs to be handled fast. You avoid the trouble of asking someone for money to borrow. Let’s face it, this is by far the biggest burden most people have. So, if you are handling your finances well, there’s no reason why you shouldn’t consider this loan option when the situation causes it.