If you are stuck in a troublesome financial situation and there is no one around to help you during that emergency, there aren’t so many options at that time. To avail other types of loans, it could take week or months to get approval. The solution for your problem is a payday loan. Payday loans are like a cash advance, which is paid back within a short period of time with the interest. The payment time would be the next payday. Though these loans carry a high rate of interest, they are more accessible and can be obtained easily during emergency situations.
The eligibility criteria for this loan is very simple and one doesn’t have to go through various levels of verification and approval. If the borrower is above 18 years of age, has a continuous source of income and possess a bank account, the loan is usually approved. The loan company doesn’t check for the credit report or any other past financial history. The loan is sanctioned and the money is credited to the borrower’s account within 24 to 48 hours.
The repayment is usually done in a month’s time from the date of receiving the money. The lender usually informs the date of repayment of the loan. The repayment is done via post-dated cheque that is given to the lender in advance or debited directly from the account of the borrower by the lender. Most of the payday loan companies lend up to $1000. The amount that can be borrowed is mainly based on the income of the borrower. If for some genuine reasons, the borrower is not able to pay the money back within the stipulated time, then the payback time is extended and additional interest is charged.
Advantages of Payday Loans
As mentioned earlier, payday loans are easily and quickly accessible compared to the other types. There are so many advantages in Payday loans that are not found in any other types of credit. Here are the main advantages of availing the Payday loans.
This is the main reason why payday loans are preferred over other types of loans. Payday loans are quick to get and are a boon when it comes to emergency situations. If you want to apply for payday loan, you can do so by walking into a payday loan company or apply for the loan online. The loan is processed and the money is credited to your account within 24 hours. In many cases, the money is even credited within an hour. But other types of loans do not work this way and one needs to wait for several weeks to get the loans sanctioned.
For getting a payday loan, one need not have an excellent credit score or a good financial record. It is very easy to qualify for this loan. The payday loan borrowers would only check if the borrower has a job and how much the borrower’s income is. Though there is a few checks and formalities involved, the main check is done to verify whether the borrower has the capacity to pay back the loan. If those qualifications are met, then the loan is sanctioned. But with other types of credit loans, a good credit score is essential to get the loan approved and it takes the time to get the loan approved. Hence, they are not the right type of loans during emergencies.
Payday loans give the borrower the cash power as cash is available to be spent on anything they want. But this is not the case when it comes to facilities like credit cards. There is a limit and not everything is available as cash.
Payday Loans are very flexible. There are no restrictions on what the money should be spent on. When a car loan or a mortgage loan is taken, it needs to be spent on car and Home respectively. But this not the case with payday loans.
Approaching the payday loan companies is very convenient. Unlike banks, these companies are open even till 8 O’ clock at night and are more approachable. Moreover, they can also be contacted through emails and customer support to get the work done. That is why these loans are easier to get and repayment is also possible on time. With so many advantages, payday loans are like a boon during emergency situations when there is a need for quick cash. It is only up to the borrower to understand the terms and conditions of the payday loans visit https://www.luckyloans.co.uk/ for more information before approaching for one.