One of the most important benefits of payday loans is the speed of receiving the funds. You will get the money in the same day. This is the future of lending and borrowing money. It’s a fast loan service that was created with the customer in mind. Most other loans seem to be created by the banks for the benefit of the banks.
The following are the most important benefits of payday loans:
#1: You can get your hands on the money in less than 1 hour.
The process of getting a small payday loan is really fast. It’s the antithesis of the usual bank loans where you have to wait for weeks or months for a good loan.
#2: The process is secure.
You can apply for a payday loan on the Internet. It usually takes about 1 hour to get your application approved. And you will get the money in the same day.
#3: The loans are almost free.
The interest paid is quite low. This is the case because the payday lenders get cheap money from the banks and the banks get cheap money from the Fed.
#4: They are excellent loans for emergencies.
It’s usually a good idea to have at least a few thousand dollars in an emergency account. It’s a smart and useful idea but many times it’s not possible. Sometimes, you’ve got to pay a lot of money for many products and services and you don’t have any money left.
#5: The payday lenders do not care about your credit history.
Most banks do not give you a cent if your credit history is a mess. Payday loans do not require you to have good credit rankings. This is because the sums you can get are small enough. You can easily request between $100 and $1000.
#6: The interest rate is quite low.
That’s because the Fed keeps the rates very low. The rate set by the Fed is equal to the interest that Fed charges the banks to borrow money from the Fed. An abundance of cheap money creates inflation, lets the government borrow money cheaply to pay the debt and keeps the banks afloat. As a side benefit, people like you and me can borrow money cheaply especially for emergency purposes.
#7: You will have to repay the loan the next time you get your salary.
This is why they are called “payday” loans. It’s because they are paid back in the day when you receive your paycheck. They work both for lenders and borrowers. The borrowers will pay back their loans when they have cash on their hands. The lenders will make a little bit of cash in short term loans.
The above benefits of payday loans should be more than enough for you to decide if payday loans are for you. Would you like to get a few hundred dollars as soon as possible? Then a payday loan is the perfect choice for you. Good luck and do not forget that you have to pay it back.