7 Best Reasons to Consider Getting a Payday Loan

You won’t have to look very far to find lots of good reasons to get a payday loan. It should therefore come as no surprise that these loans have become incredibly popular over the last decade or so. If you aren’t entirely convinced about obtaining this type of loan, you will want to learn some of these reasons. Some people are still hesitant to take out a payday loan because they have serious misconceptions. The more of these reasons you get, the easier it will be to make a choice that will benefit you.

  1. You Get Your Money the Same Day

Perhaps the best reason to look into getting a payday loan is that you can get your money right away. There is no frustrating waiting period that you’ll have to go through like with a bank loan. If you receive approval from the lender, you can expect the funds to be transferred into your bank account within hours. This is why these loans have gotten so popular among people who are in dire financial straits. If you have an expense that requires payment right now, it is a great option to consider.

  • Your Credit is Virtually a Non-Factor

Having bad credit can make getting a loan rather difficult when you try to go through traditional channels. Private lending companies that give out payday loans still run credit checks, but good credit is not a requirement. A vast majority of these lenders are more than willing to give loans to people with fair to poor credit. This instantly increases your odds of getting approved for the loan you need. Bad credit is simply not a major obstacle for most people who apply for a payday loan.

  • The Terms are Relatively Short

Payday loans are inherently small in comparison to long-term instalment loans. This means that you can expect a much shorter term, usually about two weeks to a month. The entire loan is paid back at once with the next paycheque you receive. This is actually a good thing for the simple fact that it makes paying back the money easier. The longer a loan term is, the more likely it will be that you’ll be late. It isn’t very likely that something will happen within two weeks to where you won’t be able to pay your loan back.

  • There are Established Rules for Private Lenders

Private lenders that give out payday loans have to abide by the regulations set worth by established legislation in the UK. This means that you will be protected as a borrower from unscrupulous lending practices. These loans are perfectly safe so you don’t have anything to worry about. These laws put a cap on the amount of interest lenders can charge among other things.

  • Applying Doesn’t Take Long

Filling out a payday loan application can typically be done within twenty minutes. Some lenders have more extensive applications than others, but this is usually the case. The less time you spend with the application, the faster you will get your money. It’s also done completely online, which is incredibly convenient. Once you have sent out your application, you just have to wait for a response from the lender. It usually doesn’t take longer than a couple hours to hear back.

  • They Can Benefit Many Different People

The sheer versatility of payday loans is another thing to consider before deciding whether or not to apply for one. These loans can help people who have car problems, bills to catch up on, or any other expense. They can be useful to people with good credit and bad credit alike. You won’t find another type of loan in the world that benefits as many different people as this one.

  • It’s Completely Secure

The high level of security and encryption that payday lenders’ websites use ensures that all of your information will be safe. You can see by the “https” before the URL that the website is secure and therefore totally safe to use. You won’t need to be concerned about your identity being stolen or your personal information being misused in any way.

When you actually take the time to examine the myriad benefits of payday loans, you’ll be more likely to get one if the need arises. When you have an immediate financial need for any sort of expense, this is one borrowing option to look into. It offers a fast and efficient way for you to obtain funds for virtually any purpose. You won’t have to answer any questions about how you plan to use the money you are given. The process for getting one of these loans is extremely quick and convenient. If you take enough time to find the right lender, you can borrow the money you need at a minimum of additional expense.

How Payday Loans Work and Why You Should Get One

You might think that you know exactly how payday loans work, but there is a good chance you have some misconceptions. It is imperative that you get factual information so you can make the right choice. These loans have served a lot of people in the UK very well over the years for numerous reasons. Before you make a decision either way, you have to learn everything there is to know. This article will give you a good starting place.

A Low Risk Borrowing Option

One of the first things that you need to know about payday loans is that they are extremely low risk. This is because these loans are secured and therefore do not require collateral. This means that you won’t have to worry about losing your home, car or any other property if you can’t pay up on time. It also means that you won’t have to lose sleep at night worrying about what will happen if you are late on your loan.

Short Term Loans

Payday loans are short term and typically paid back with the next paycheque you receive from your employer. There are certain lenders that are more flexible with the terms and willing to give you longer to pay off the money you borrow. In fact, you could get up to an entire month to return the money.

Legitimate Lenders

An overwhelming majority of private online lenders that give out payday loans are 100% legitimate. Emu.co.uk is a good example of this. You will need to look for authorised lenders to ensure that you don’t face any issues down the line. This really shouldn’t be all that difficult, as most of these lenders are perfectly trustworthy and reputable.

Benefits of Obtaining a Payday Loan

There are tons of benefits that you can enjoy from getting a payday loan, including:

  • No long waiting period: You can get your cash instantly after you accept the offer from the lender. Even your initial application will be processed quickly, so you can expect a response soon after you submit it.
  • Security: Most private lenders’ websites are completely secure, so your information and details will be safeguarded at all times. The encryption measures that these sites use guarantee protection for all of your personal and financial details.
  • No questions asked: You will have the freedom to use the money you receive for anything. A lot of people use these loans for emergency expenses, but you can do anything you want with your funds once you have them.
  • Convenience: You simply cannot beat the sheer convenience of online payday loans. You won’t even have to leave your home to apply and get the money. This means that you won’t have to drive down to any office to fill out paperwork or cash a cheque.
  • No fees: These days a lot of private lenders don’t charge any fees on their payday loans. This will help you get the money you need without paying more than necessary for it.

Paying Back the Loan

You can pay back a payday loan in a couple of different ways, depending on what sort of arrangement you have with the lender. A standard payday loan will have you pay everything back at once in a couple of weeks. Many of these lenders have a policy that requires automatic repayment. This is essentially when you authorise the lender to take the full amount of the loan from your bank account on the due date. It makes repaying your loan even more convenient and ensures that you don’t forget.

If you take out a long-term payday loan, you might be required to pay back the money in multiple instalments. This is usually reserved for those who borrow larger amounts. After a certain number of payments are made, your loan balance will be wiped clean. You should know what the amount of each payment will be from the very start.

Getting Approved

Not everyone who applies for a payday loan will get approved, but the statistics are definitely in your favour. In order to be approved for one of these loans, you must be over 18 years old, have an active account at a bank or credit union, and make enough to pay the loan back on time. These are the most basic requirements for approval, so you will need to keep them in mind.

When you know exactly how payday loans work and the benefits they offer, you are far more likely to make a good overall decision. The last thing you want is to make a choice based on misconceptions like so many others. Some people avoid getting these loans because they just don’t have all the necessary facts. A payday loan could help a lot when you are in a bad financial way.