There are so many loan options available nowadays. From installment loans to secured and unsecured loans to payday loans, or also referred to as cash advance loans. However, only a small number of people consider payday loans compared to other loan options.
Most people prefer installment loans, as they give them more time to repay their loan than a payday loan. As its name suggests, a payday loan is a short-term loan required to be paid on your next payday schedule. Most borrowers don’t know that payday loans have their advantages. If you are considering a payday loan from this list of online payday lenders, here are the benefits you can get from this option.
Fast Money
If you need fast cash, an advance payday loan would be the best option for you. Whether you are planning to apply online or in-person, the process of acquiring a payday loan is quick. The application form will only require a little information and is often straightforward.
After you fill-up the form, you will only need to wait for a few hours to get your cash. You will be required to write a check dated on your next payday schedule. The amount on the check should be the principal amount of your loan plus any fees agreed upon. The lender will get hold of the check until your payday comes in and cash it out as your loan payment.
Few Requirements
Unlike any other loan option that will require you multiple requirements, a payday loan only requires you to provide proof of steady income, a checking account, and that you are at least 18 years old and residing permanently in your state.
You need to remember that you should pay your payday loan before the date stated on the check. If you do not show up, the lender will automatically cash out the check you issued. If you let this happen, make sure that your check has sufficient funds to compensate with your payment.
If the lender cashes the check and it bounces, your bank will charge you a Non-Sufficient Funds fee, which will be around $38 to $45. In addition to that, your lender will also have to charge you another fee due to the event.
All of these extra charges are on top of your original loan amount and interest rate. However, this scenario is completely avoidable if you will ensure that your checking account will have enough funds..
Convenient Loan Process
As mentioned earlier, a payday loan can be processed online and in person. Whichever is more convenient for you will do. As long as you prepare the requirements beforehand, you will have a convenient and smooth processing of your loan.
After filling out the form and submitting the requirements, you will then proceed to the contract’s signing. Read the contract carefully and do not rush in signing it. If you notice something odd in the contract, do not hesitate to point it out.
It is also best to ask as many questions as you like regarding the terms of the contract. If there is something you did not understand, the lender will explain it to you in a manner that you will understand. If there are specific terminology lenders use on their contract that you are not familiar with, and it is normal that you ask for an explanation.
Won’t Take Long to Pay
Most people who opt for payday loans are those people who do not want to get stuck in a repayment cycle for a long time. If you are one of these people, a payday loan is the best choice for you.
After your next payday, you can ensure that you will not have any debts to think about anymore as your payday loan is already settled and paid. It is also best to talk to your lender to give you a heads up on your terms and interest because loans with interest rates explained can better be managed by the borrower.
For example, in installment loans, you will be in debt for years, and you will keep paying it until the loan term ends or until you fully paid your principal loan amount plus the interest rate.
Helps Limit Your Debt
Your income will determine the amount you can borrow using a payday loan. The lender will automatically set a limit amount that you can borrow, which will help you avoid being buried in a debt cycle.
If you only borrow an amount you can afford to pay, you will not have a hard time paying your loan, which means you will not get stuck in cycles of debts over time. Many borrowers tend to borrow money beyond their means, which affects their finances negatively. These impulses are prevented when you apply for a payday loan.
Conclusion
Although payday loans have been unpopular to many as they were associated with much negative feedback, these loans also have their set of advantages. All loan types will negatively affect you if you do not know how to properly manage your loan. Therefore, how a loan affects you is all up to you, whether it is a payday loan or not.
