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If you’re stuck in a hard spot and need cash you may want to consider a payday loan. Also known as check advance loans or cash advance loans, they are useful when you just need to make it another week before you get on your feet. The benefits of getting a payday loan can really help get people to get out of a tough spot.
Benefits of Getting A Payday Loan
Before you rush out and get a payday loan for a TV or something, keep in mind that most payday loans have high interest rates. You should only get one if you are in an emergency or know that you can pay it off reliably.
1. Payday Loans Are Quick
Typically, if you’re in a situation where you would need a loan, you want it fast. Many services offer same-day or 24-hour deposits. Since you have many services to choose from, they want to be competitive to get your business.
Getting a loan from a bank can take days or weeks, which isn’t always an option. So the speed
2. Payday Loans Are Convenient
Everything is done online nowadays including loan applications. Loan services can be done completely online without leaving your home. Traditional bank loans require you to make an appointment and meet in-person with your bank’s loan officer.
3. The Requirements Are Not Strict
Besides a stable income, there are not many stringent requirements for cash loans. Most requirements are just to make sure people who can’t afford to pay them back don’t take out loans.
The most basic requirements are:
- Be 18 years of age
- Have an active bank account
- Have proof of employment, usually 3 months worth
Most people can meet these requirements easily. Some services require proof that you make a certain amount each month so they know you can pay your installments.
4. Credit Score is Not A Factor
If your credit score isn’t good, your bank will just outright deny your loan application. Payday loan services typically don’t check for credit when you apply.
This doesn’t mean credit score won’t affect your loan, however. Having better credit can reduce your interest rate. You should never put off improving your credit score anyway, a good score comes in very handy.
5. This Money is Yours for What You Need
A traditional loan from the bank is very specific. Auto, home, college, the money is only for those once it’s locked in. A payday loan is money in your account for what you need.
If you borrow $500 you get that amount. If you use $150 for a car payment, $160 for car insurance, $200 for groceries, and the rest on baby supplies the loan service doesn’t care. As long as you can pay it back you can do whatever you want with the money they give you.
It’s There if You Need It
Know that you know some of the benefits of getting a payday loan it’s up to you to decide if you need one. They’re great for getting you out of a bad situation but they aren’t a permanent solution.