Payday loans allow anyone with a stable job and residence to borrow money quickly. The loans are really advances on the next paycheck coming into the household. Payday loans provide cash that can be used to pay down bill or cover other expenses. There are several reasons to have a payday loan today.
Late fees can build up every month on overdue utility or credit card bills. Late fees can sometimes cost more than the principal balance owed. Payday loans provide a fast and easy way to stop late fees immediately. Using a loan to pay down bills will allow the household to catch up on overdue payments.
Traditional banks often have very tough requirements for taking out a loan. One of the benefits of payday loans is that a credit check is not usually required. The loan is based completely on the income currently being earned. This makes it easy to get cash to pay down debts even if late payments have started to hurt credit.
Payday lenders usually have simple and streamlined procedures for approving an individual for a loan. Many companies just perform income and identity verification. There is no reason to wait for a chain of bankers to assess every past financial detail. Payday loans can often be approved in just a few hours or days. This makes payday loans a valuable resource when dealing with a financial emergency.
Overdue car or rent payments can potentially lead to repossession of a vehicle or eviction from an apartment. Repossession or eviction can sometimes happen quickly. The speed and simplicity of payday loans can help anyone to avoid repossession or eviction. The loans can be used to make sure car and rent payments are made on time.
Some traditional bank loans have repayment schedules that last for years. It can be stressful to commit to making monthly payments on a loan for the next five or ten years. Payday loans have much shorter terms. Most loans are repaid when the next paycheck is deposited. This means the money can be borrowed and then repaid all within just a week or a month so there is no lingering debt.
Payday loans are not like most other forms of short-term lending. Borrowers do not need to provide assets or collateral to secure the loan. The loan is secured based on regular income. This makes payday loans available even for people who do not own a car, home or other expensive asset.