Payday loans are best suited to people who require a relatively small amount of money, for a relatively short amount of time. If this describes your situation, you should know that there are several advantages that come along with choosing a payday loan over other loan products. Keep reading below to learn more about some of these advantages so that you can decide if a payday loan may be the right option for you.
Advantage #1: Upfront, Flat Rate Loan Fee Instead Of Interest
Traditional loan products come with an interest rate. This interest rate determines how much interest you will be required to pay the lender in addition to the principal amount of your loan. The problem with this is that there is no way to know exactly how much you will pay in interest until the loan has been paid in full. This is because interest will continue to accumulate each day that you still owe money. With payday loans, you are charged a flat fee upfront rather than having interest accumulate over the life of the loan. This means that you will always know from the start exactly how much you will need to repay if you decide to finalize your loan.
Advantage #2: Easier To Qualify For Than Traditional Loans
It can be difficult to qualify for traditional loans if you do not have good credit, excellent references, and substantial collateral. If you are not able to qualify for this type of loan, you will be glad to hear that payday loans are much easier to qualify for. In most cases, payday loan lenders will simply require that you have a certain amount of regular income and an active checking account. If you can meet these very basic requirements, it is possible that you could be approved for a payday loan.
Advantage #3: Offers Quick Access To The Cash You Need
Most loan products require several days or even longer for you to go through the application process, be approved for funding, and ultimately receive the funds you need. If you are dealing with an emergency or unexpected expense, waiting this long to get the money you need may not be an option. Thankfully, payday loans offer an alternative that will allow you to get quick access to the money you need. In fact, you can often get funding through a payday loan program in just one day. Some lenders will even allow you to gain access to cash in a matter of minutes.
Reach out to a local payday loan program to learn more.