7 Main Benefits of Getting a Payday Loan

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Businessman pressing a Payday Loan concept button. Instagram Styling Applied.

You work hard. You budget. You save. But No matter how you try, life happens. 

Sometimes, you have to look outside your own means to make ends meet and looking to your family is not always an option. What do you do when you need cash now and you don’t get paid for another week? 

Simple. Look for your closest Payday Loan service. 

At first, the very thought might leave a bad taste in your mouth, but think about it. These financial establishments are meant to help you in the event of an emergency, so their process is specifically designed for a quick payout.  

While it is true that you will have a much higher than usual interest rate if you go this route, there are also many benefits to using this type of lender. So if you have found yourself in a bit of a scrape, read on to learn why a payday loan might be the answer you are looking for. 

Quick Cash 24/7

In an emergency situation, it isn’t always about how much money you can get, but how quickly you can get it. And that is one of the biggest benefits of using a Payday loan service. 

Most locations can get you approved either immediately or within 24 hours and the payout is in your account within one to two days. Some lenders are even able to pay you within a few hours of approval. 

As a bonus, you can also reach out to most payday lenders 24 hours a day, 7 days a week and they are there to help you get the money you need. Can you say that about your bank? 

Easy Qualification

One of the biggest benefits of using a payday loan service is that it is extremely easy to qualify. Even if you don’t have a good credit score, you can still qualify for a payday loan. 

The only problem with having poor credit when it comes to this type of loan is that it can negatively impact the interest rate. Still, if you can’t qualify for a loan any other way or if you need money fast, this is not necessarily a deterring factor. 

You can qualify for a payday loan in most cases if you meet the following requirements: 

  • You are 18 or older. Some states may have different age requirements. 

  • You have an active bank account.

  • You can show verifiable income.

  • You have a valid phone number.

Improved Credit Score

While your credit score does not affect your ability to qualify for a payday loan, the loan can affect your score. So if you make payments on time, you can improve your credit. 

Paying off your loan early can further increase your score. Conversely, paying off the loan later than scheduled can diminish your credit. 

Since it can be difficult for people without credit to get a traditional loan, payday loans are an ideal way to build credit. It is also an easy way to learn about financing with little risk.  

No Restrictions

Most loans require you to declare what you are taking out your loan for and sometimes this will affect whether or not a lender gives you money. 

Think of it like this; if someone asks to borrow money from you, you would want to know what they were going to do with it first. If your friend wants to use that money to gamble in Las Vegas, you may be less inclined to lend them the money than if they need to buy groceries. 

When it comes to a payday loan, it is a far less risky investment. Usually, the amounts loaned are relatively low, ranging between $100 and $1000, but the interest rates are high, ranging between 390 and 780% APR. So payday loan companies don’t really care what you plan to do with the money. 

No Long-Term Commitments

78% of American workers live paycheck to paycheck. If you count yourself among them, then having another bill from a personal loan that takes a year or more to pay off may not be a viable option. 

Most payday loans only have a two week pay down period. If you need your regular paycheck a little earlier and will be able to use your following paycheck to pay off the loan, then this is an ideal loan for your needs. 

On the other hand, if you will not be able to pay the loan off on time, then it may be best to seek out a more traditional personal loan. 

Apply Online for Payday Loans

When you run out of money and have to ask someone to borrow more it is embarrassing. It is equally embarrassing when you are seen walking into a payday loan location by a friend. If feels like you messed up somehow. 

But these days, it is one less thing to worry about. Top payday loans can be applied for without ever leaving the comfort of your home because most lenders will allow you to pay online. 

Even if you aren’t worried about someone finding out, the convenience factor in and of itself is pretty compelling. When compared to a traditional loan where you usually have to make an appointment and go into a stuffy office just to apply, its a pretty sweet deal. 

The Right Choice for You

Now that you know more about the benefits of using a payday loan service, it is time for you to decide if it is the right choice for you. Life happens and that’s okay as long as you bounce back and move forward.

Sometimes, you really need to evaluate your situation and learn how to both set and keep goals. Other times, it is more about developing habits that will enhance your life. And yet at other times, you just need some extra cash quick. 

Whatever your needs, we are here to inspire and hope to continue doing so. 

We would love to hear your thoughts and experiences regarding payday loans. Please feel free to use the comments below to let us know what you are thinking!