Need instant funds for getting a family member treated? Have an upcoming credit card bill with no funds in your account? A payday loan might be just the right solution to such needs!
These short term loans have become incredibly popular thanks to their flexible nature. Plus, if you choose lenders like Loanza, you can get a £5000 loan if you have bad credit. That’s not it! There are several more benefits to taking a payday loan directly from a lender. Keep reading to know what they are!
Easily Accessible
It’s effortless to apply for a payday loan. You just have to visit the lender’s website and fill out a simple form to get the funds.
Most other types of loans come with an extensive application requiring additional documents. And sometimes, you might have to visit the bank or let an official into your home during the loan process. But none of that is valid for payday loans. They are almost always fully online.
Little to No Documentation
As mentioned earlier, most loans entail supporting documentation. Even in the case of a small personal loan, the lender might ask for bank statements, income/employment proof, collateral or security proof, etc. Such documents aren’t always readily available, and that’s where payday loans save the day.
Payday loans usually only require you to have an active bank account, a valid ID card, and sometimes proof of regular income. So the next time you’re stuck with a need for money and don’t have time to source documents, choose payday loans.
No Middleman
Brokers and agents aren’t just for buying homes. They even play a role in the lending industry. And while they do offer some convenience, their hefty fees should be enough to drive you away from them. Thankfully, payday loans do not involve brokerage.
Since the process is short and completely online, brokers have nothing extra to offer. So you won’t ever find a middleman eating up your money while you already struggle with finances. When you take a payday loan, the deal is only between you and your lender.
Can Be Taken Even With Bad Credit
Have you been shying away from a loan because you don’t have a good credit history? Stop doing that right away and go for a payday loan!
Even though maintaining good credit is essential and ethical, emergencies can strike anyone. And if that happens, credit is usually the last thing on people’s minds. Despite this, most loans cannot be taken with bad credit history. But lenders often don’t run a credit check for a small payday loan.
No Restrictions on Usage
What do you use a home loan for? To buy a home. What about an education loan? Does a car loan let you do anything other than buying a car? If you spot a pattern here, you are absolutely right. Loans of almost all types, except payday loans, need you to utilize the money for very specific purposes.
In the case of payday loans, you get a small amount into your bank account without any restriction on its usage. You can use it for everything from medical emergencies to shopping. However, as a responsible borrower, consider taking payday loans only for emergencies.
Secure
Trusting small finance lenders is never easy. Since you provide the lending company with crucial information regarding your identity and history, you have a right to worry. But payday loans are secure and confidential.
No lender can sell, share, or exchange your data with another company or individual without your consent. Doing so is a grave crime that could land them in prison or cause them to pay hefty fines. So as long you have verified the lender’s security certificates, reviews, and reputation, rest assured that your data is in safe hands.
Borrow On Your Terms
Does taking a loan always mean being a slave to your lender’s wishes? No! When it comes to payday loans, you have the flexibility to set the terms of repayment.
This simply means that while borrowing, you will have complete knowledge of the principal amount and interest rate. Based on these, you can estimate how much you’ll be repaying and by when. If the timeline or the amount doesn’t suit you, you can simply adjust both.
Conclusion
Now that you know how taking a payday loan is super convenient, you can consider it during emergencies. But even with small finance options, be vigilant and responsible. If more payday loan questions are bothering you, comment them down below!
