Financial hardship is a part of life and can set you back if you are not careful. If you find yourself in need of urgent monetary help, especially during the pandemic, you are not alone. In recent years the popularity and use case of payday loans has skyrocketed, and there are several key reasons behind that. They are designed to be used by people who previously had a hard time seeking financial help. These types of loans do not need a ton of paperwork to apply or even a good credit score for that matter, making it a highly viable option for middle and working-class people. But should you consider taking a payday loan yourself? What is the implication of taking a short-term loan? Let’s find out in today’s article.
Let’s start with what exactly is a payday or cash advance loan?
Payday or cash advance loans are short-term financial help that is given out by different lenders to help you out in urgent financial situations but after charge you higher interest rates for the service. The upside of these loans is that private lenders are responsible for approving your loan, and therefore you do not need to have a good credit score to get approval. Furthermore, being a short-term loan, you do not need to pledge any collateral to the lender and make sure your assets are safe and not exploited by the lenders. Payday loans are usually approved in under 24 hours, making them one of the fastest available loans for general people. But these loans are intended for short-term financial crunch only, and you need to pay off your due from your next paycheque.
How to apply for a payday loan?
Payday lenders typically allow customers to apply through their website, saving time for both parties. You can apply for a loan from the comfort of your home by simply filling up an online form. You can put in all your details and get the loan approved in under 24 hours. But because of the online nature, there are many fraudulent lenders who ask for money even before approving the loan. So instead of applying directly to a lender, it may be wise to apply through a payday lender like Advancenearme, where you can compare the interest rates from different lenders to get the best rates. Also, all the lenders are registered from a pool of reputed companies, thus eliminating the chance of fraud. But it is upon you to read the clauses of the lenders as your financial decision is your responsibility.
Use-cases for a payday loan
A payday loan can be used in various situations and are not limited by the lenders on where you can spend it. Most people use this loan in urgent medical emergencies or during long layoffs, or urgent unemployment. A payday loan can also be a great way to meditate unforeseen expenses like home improvement or car repairs that just can not wait any longer. These loans are an effective way of saving money as well when people uses the money to buy things in bulk or during discounts, thus reducing the overall expenses.
It must also be added that although lenders set no restrictions, you as a customer has to be alerted of what you are using the loan for. Expenses that involves goods or services that you do not necessarily need should be avoided at any cost. Payday loans are for short term financial situations only and should not be used for long term financial problems as their interest rates can quickly add up.
Does a same day payday loan really exist?
One of the key selling points of payday loans is their blazing fast approval but does it really hold up to its promise of same-day approval? In truth, it depends on many factors if you can truly get approval in under a day. First, not all lenders can approve loans that fast, but loan matching services usually have an array of reliable lenders who has the ability to approve fast loans but will it be under a day, depends on two more things. First, the lender has to verify your employment status and ensure that the information you provide is accurate and can be verified by your reporting manager. This is very important, and if there is a government holiday or any hold-up and your employer can not be contacted, you may need additional time to get the loan approved. This is why veterans and people in the army usually need longer to get their loan approved when compared to jobs that can be easily verified with a phone call. Secondly, you also need to have a checking account where you can receive the money once the loan is approved, otherwise, it may take additional time.
Bottom line
All things consider payday can be a lifeline for people who are in urgent need for financial help. They are approved quickly in under a day and can be a great alternative to traditional loans, especially if you have a less than ideal credit score. Short-term payday loans also do not require pledging any collateral to the bank, making it the safest type of loan. But like all things in life, payday too comes with new nuances that you must take care of before taking on the loan. First, payday loans are intended to be used for short-term financial crisis only and should not be considered a long-term solution. Interest rates of these loans are usually a bit higher and can accumulate quickly and get out of hand when taken for a long term. Many people also make the mistake of taking the loan for expenses that they can otherwise avoid, putting them in further financial crisis. There is no restriction on the part of the lender on why you can avail the loan, so you must make sure to be responsible with your own finances. Check out Advancenearme for reliable lenders and compare rates to find the best deals.
