When you need cash quickly and you can’t get traditional loans, your best option is to take a payday loan. Payday loans are the best way to pay for your expenses like paying off your debt or other expenses.
Thankfully, everyone can access them regardless of the status of your credit score. If you are wondering whether a Net Pay Advance is suitable for you or not, you need to understand some of the advantages of taking it. This article discusses the key benefits of taking payday loans.
The benefits of payday loans
A payday loan is also known as a short-term loan, cash advance, payday advance loan, or fast loan refers to a small amount loan that you repay on your next payday.
You usually repay the loan by writing a post-dated check with a full balance or you can authorize the lender to debit the funds electronically from your account. That said, below are some of the benefits of taking payday loans:
Easy to access
The key advantage of a payday loan is that it’s easy to access it. In most cases, many payday lenders can allow you to access the money within 24 hours and provide a quick lending decision.
You can even find some who are available 24/7 and provide online applications. Remember that traditional loans can take longer to apply for, but payday loan applications may take just five minutes of average.
They have a few requirements
A traditional lender can request a proof of income, photo ID, a credit check and they can even do a credit check to determine your ability to make the repayments. With payday lenders, they usually have fewer requirements than these traditional lenders.
To apply for a payday loan, you just need to be at least 18 years old and above, have a government-issued ID, have a regular source of income, and have a bank account.
There is no credit check
To apply for a traditional loan, you need to have good credit to stand a chance of accessing the loan while payday loans don’t need a credit history. Because they don’t require your credit history, it means there is no hard credit inquiry that may reduce your credit score by a couple of points.
But in some rare situations, payday loans can assist you to build the credit you want to get other financial products, especially if you don’t have a good credit score.
It’s considered as an unsecured loan
Payday loans are not like a traditional auto loan, car title loan, or mortgage. Instead, they are unsecured loans that don’t need a personal property to get them. Therefore, if you don’t pay, the payday lender cannot take your property.
Although they are unsecured loans, lenders can usually access your bank account as one of the conditions of providing the loan. Alternatively, they can take other ways like taking you to court over the outstanding balance or even send your debt to collections.