7 Reasons Why Payday Loans Are So Popular
There is no question that payday loans have skyrocketed in popularity in the last several years, and there are numerous reasons for that. These loans have quite a lot to offer for many different people. If you need to borrow money for any reason, you should be aware of payday loans and the benefits that are associated with them. This information can help you make a borrowing decision to match your needs.
- They Are Short-Term
The average length of a payday loan is two weeks, which means that you don’t need to pay a lot of interest. While some people might look at a short loan period as a bad thing, it will ultimately save you money. Just because you have more time to pay back other types of loans doesn’t necessarily mean you come out on top. The money you save on interest will likely make it easier to return the money you have borrowed by the due date.
- It’s All Done Online
There are tons of different private lenders such as Emu that give out payday loans, and most of them are based online. You will be able to apply for one of these loans and get your money (if you are approved) without even leaving your home. This makes the whole process of getting a lot much easier and far less complicated. If you want to save yourself a lot of time and effort, you should definitely consider this option. The process of filling out an online payday loan application only takes around 20 minutes or so.
- People with Bad Credit Can Get Approved
Even people with bad credit can get approved for payday loans without much hassle. If you have a low credit score that is preventing you from getting a traditional bank loan, this is a good alternative. Lots of private lenders who give out payday loans don’t have the same kinds of high standards for applicants’ credit that banks do. It can be difficult to get approved for a loan with bad credit, but this is one way to get the money you need.
- No Long Waiting Period
Most bank loans will require you to wait a minimum of 3-4 business days before you get your money even after you have been approved. If you cannot wait because you need funds immediately, you should consider applying for one of these loans. Those who are approved can get the money transferred into their bank account within 24 hours. This process usually goes very quickly. This is why payday loans are such a popular option for people who are in a financial emergency. If some expense has suddenly come up and you need money, a payday loan could save you from disaster.
- Many Lender Options
You definitely won’t be limited when it comes to lenders for a payday loan. There are hundreds of private lenders out there that you can borrow from, but you shouldn’t choose just any of them. Instead you will need to do some research. Make sure that you find a lender that is reputable and seems to have a solid reputation. There are numerous websites where you can go to look up reviews for these lenders. This information will help you make the best possible decision.
- No Restrictions on Usage
There are no restrictions on how you can use a payday loan like with a bank loan. You don’t have to specify what the loan is for when filling out an application online. This makes it easier to use the funds you receive however you want. Whether it is for car repairs or home improvements, you are free to spend it how you see fit.
- Interest Rates Aren’t Always That Bad
Payday loans have earned a somewhat negative reputation for high interest rates, but they aren’t always that bad. The rate that you pay on your loan will depend on quite a few factors, including your credit. If you have good credit, you can probably get a very reasonable interest rate. Even those with low credit scores still might be able to get a fair deal. Take some time to shop around with different lenders so you can get a rate that isn’t too high.
Final Thoughts
When you are looking to borrow a smaller amount of money, a payday loan could be exactly what you need. You could borrow anywhere from 50 to 2,000 pounds with one of these loans. Make sure that you choose a legitimate lender so you don’t end up getting ripped off at all. You should also spend some time doing the math to see if you can really afford to take out a loan right now. This information will help you make the right decision.