When you face financial expenses, emergencies, or you find yourself in an extreme financial pinch, payday loans can be a quick and easy solution for you. Payday loans help to cover these emergencies until your next paycheck. The internet has contributed to the growth of the payday lending industry. More and more people are now going online to borrow cash. As such, thousands of payday lenders flock to the market to win their share of customers. However, you always take care of the lenders you engage. Ensure you use a reputable online payday lender like Chron to avoid getting ripped. Read on to discover why you should consider a payday loan.
You probably know how traditional lenders include a long and hectic application process before approving a loan. As such, getting a loan within a short time to meet your financial emergencies from a conventional lender will never work well. Payday loans came to bridge that gap. Payday lenders have a simple application process and easy access to funds without needing any paperwork. The short application and approval process is the primary reason most people go for payday loans. Payday loans provide a quick, easy, and hassle-free option to borrow when unexpected expenses crop up.
2. Online Process
When taking a loan from conventional lenders, you will often need to visit their physical location. However, the online space has plenty of private lenders that give out payday loans. You can apply for your loan and get the gash at the comfort of your home. The online application also takes around 20 minutes. As such, it is easy to access payday loans. The online process will also save you time and money since you do not meet any physical person.
Unlike traditional loans, payday loans do not require you to put in any collateral or have a perfect credit score. The only basic requirements are the validation of a steady income, a checking account, proof you are of age or older, and a permanent resident in your state.
Most lenders offer payday loans for about fourteen days. As such, you will not pay significant interest for the loan. The money you save in interest makes it easier for you to pay the loan by the due date. Some lenders also allow you to pick a repayment period. However, since it is a short-term loan, they can only allow a three-month repayment period. Being a short-term loan, payday loans will not affect your finances for long, unlike other types of loans.
5. Anytime Loans
Since the application process is online, most payday loan lenders offer 24/7 banking hours. If you need the loan on weekends or holidays, the online lender can provide the amount you need. With this accessibility, payday loans have become an option for many people. You can also access your online account at any time to view your personal information, remaining loan balance, and repayment schedule. The lender will also notify you when the schedule is near. With this feature, you can keep track of the progress of your loan and pay back what you owe on time.
6. Legal Regulations
Since there are several lenders on the market, some may decide to charge excessive interest rates. For this reason, most states in the US have regulations on payday loans. For instance, a lender cannot approve a loan to an applicant who has other loan obligations. Also, lenders should not impose higher interest rates and exorbitant fees on payday loans. Your lender should also inform you of the annual percentage rate of the payday loan.
Another reason why you should consider payday loans is that you can use them for whatever purposes. Unlike other types of loans, you can use your payday loan for almost anything. You can pay your loan to pay overdue bills, make purchases, cover medical expenses, or pay your mechanic. You can also use your payday loan to avoid withdrawing extra funds from your business. Whatever financial needs you have, payday loans can serve as a buffer.
Payday loans often have a bad name due to the predatory practices of some lenders. However, if you choose the right lender who follows the rules of law in their business, you may realize that payday loans have some benefits. You can borrow any amount that you like. However, do some calculations to see if your financial state will allow you to repay your loan with ease.