Payday loans are the top option to consider when you want to get quick and safe access to money. No matter what loan plans and credit options you compare them with, payday loans are the best help for solving short term money problems.
Payday loans are famous for so many reasons. Generally speaking, there are numerous advantages of payday loans. Here are some of the situations where payday loans might be your only escort. So, let’s move ahead with each one of them.
Easy to apply and qualify for
Applying for payday loans and qualifying for them is very easy, especially if we compare it to other credit loans. All it takes in getting qualified for a payday loan is a monthly sufficient income, which is in the form of a side business or an employment.
Moreover, there are a couple of basic things to make sure of:
- A verifiable source of income. Salary slip or previous account details.
- An active social security number.
- Valid residency address of United Kingdom, with citizenship details as well.
- A checking or savings account, which exists inside the United Kingdom.
- Also, you need to be of age in order to take out a payday loan (i.e. 18 above).
Apart from these, there may be some other detailed background checks, but usually this depends on your lender. If the service they are providing is benefiting you, they might ask for more security details.
Fast and instant cash services
The reason why payday loans are very famous is because they offer fast cash service, especially in case of emergencies. Nowadays, payday loans are not only quick to apply for, but they also get approved within a jiffy. Some lenders approve your payday notice within a short few hours. You can even apply for a payday loan using your android phone.
Because of the competitive attitude of payday service providers, the loan will take a maximum 24 or 72 hours to get approved. This kind of short, hassle free service of payday loan companies and lenders is what made them so unique.
Some payday companies even guarantee a sum of money in your account within the very hour of application.
Spending money on miscellaneous expenses
As it happens with mortgage and car finance lenders, you can only spend the loan money on the agreed or contract specified source. You aren’t allowed to use the credit or loan amount in any other venture. This is a big disadvantage, because sometimes, you simply need to spend money without telling anyone about the emergency details.
In case of payday loans, if you compare them with other bank or credit loans, you get to have them quickly and without inquiries or questions about the expenses. Such instant cash services are reliable and necessary, because they are suitable for paying for any kind of unexpected payment. You can go on a short one week vacation, buy anything new and comfortable for your home, pay for sudden uncovered medical treatments and carry out any other transactions with the payday loans.
With payday loans, bad credit is not a problem
Even people who never maintain a good credit score can successfully get a payday loan. This is because payday lenders will not judge people with a bad credit. They just care about a monthly source of income, and ensure that you will return the payday loan within due time. If, for any reason, you are unable to repay them in due time, remember that your interest amount will be multiplying quickly.
No collateral or security
You might already have been involved in a mortgage or car finance loan. All these loans, especially the ones taken out from a bank, will require you to offer some collateral. This collateral is in a way, the security for their loan amount.
Unlike all the regular credit and loan installment plan approvals, a payday loan doesn’t ask you to submit any form of collateral. This is, in a way, risky on part of the payday loan provider but when you apply for a payday loan, your personal property, your banking account and information is safe and secure. In this way, when you aren’t being asked for a security deposit, your lender cannot legally forward your details to other loan companies.
Convenient and flexible
Payday loans are very convenient and flexible. These days, there are many small and large payday companies that are running in the UK. Because of the round the clock application processing, payday loan companies are usually open all week. This means, you can perform easy and convenient transactions even aside from business hours. This makes the process easier as you are directly getting the loan amount in your account.
Additionally, payday loan companies have a strong online presence. This means that you can simply apply, fill and submit the form online. This flexibly feature is very attractive as you do not have to go out and meet the bank or loan crediting staff personally.
Payday loans caps interest rates
It’s a very well known fact that in many regions, payday lenders are not allowed to put forth interest rates higher than a specific amount of money. Because of this, many companies hide various payments and make them automatically due at the time of repayment. This is an area where you have to be careful. Read the policies of the payday loan company properly before you sign up for its loan services. Later, you will have no choice but to end up paying the loan amount, with added fee.
There are so many credit and payday loan companies that it gets next to impossible to decide which one to select all on your own. A good way to calculate and judge various advantages and disadvantages of a payday loan provider is by comparing each one of them.