Payday loans are short-term, high-interest loans that cash-strapped people take out to meet their needs. The risks of payday loans may seem quite high but compared to their benefits, the risks seem low. Many people with low incomes (less than $40,000 a year) usually take out payday loans. Some 12 million Americans, mostly young people (20-30) who are studying or settling into a new life. There are payday lenders in many US cities and you can take payday loans in cleveland, California, Texas, New York, virtually anywhere. Let’s talk about some benefits, now that we’ve settled the basics.
INSTANT AVAILABILITY OF FUNDS AND STRESS-FREE QUALIFICATION
Payday loans are a great way to deal with unexpected costs you didn’t see coming. They’re quick to get and easy to take, as most lenders promise cash flow within the next 24 hours. Interest rates on payday loans are higher than many other types of loans. However, they more than make up for it with their quick availability and convenience.
The biggest problem most people face when applying for a loan is the fear of rejection, but in payday loans all you need to provide is basic personal and financial proof, and you will be allowed to get a loan. Often even a poor credit score does not hinder your qualification when applying for a loan, and it is established that when you repay the loan with interest, it will simply be part of your next paycheck.
PRIVACY ASSURANCE AND EASY APPLICATION
In payday loans, you may be wondering if it is safe to provide sensitive personal and financial information to the lender, but rest assured, lenders cannot share your information with anyone without your consent, even for marketing purposes, as it is a legal violation. All you have to do is go to the website, fill out a form, and wait for approval. It’s literally as simple as that. There are no additional costs, hidden fees and obligations. It is very easy to apply for and receive loans and all people can be considered eligible to receive these funds.
NO INTERMEDIARIES AND AUTOMATIC TRANSACTIONS
Many lending companies use brokers or intermediaries to complete the transaction, and the intermediaries usually take around 10-15% of the transaction. Payday loans remove this cost by eliminating the need for middlemen. The need for intermediaries is already drastically decreasing due to the ongoing transition of business transactions to the Internet.
Payday loans go a step further as there is no overly complicated paperwork required. You can contact the lender directly and be considered eligible to receive the loan. Upon approval of your loan application, the money is directly transferred to your bank account. Some lenders may require you to set up a recurring payment plan, which allows lenders to take their dues directly from your account. This plan is suitable for those who do not want to micromanage their money. You may think it’s risky, but don’t worry, this is a regulated industry.