Whether you need extra cash to cover an unexpected bill or find yourself stretching to make ends meet, a payday loan may be the solution. Payday loans are quick and convenient, often providing same-day funds with no collateral required. Read on to discover more about the top five benefits of payday loans and consider if applying for one is right for you.
1. Convenience
While you can get some payday loans in person at lender store locations, today’s online process makes it especially quick and easy to apply. Unlike conventional loans, many lenders process payday loan applications within minutes. An expedited approval can take the pressure off when expenses just can’t wait.
2. Minimal documentation required
The last thing you want to do when you’re in a bind for cash is chase down a pile of paperwork. When it comes to payday loans, lenders keep requirements simple. Especially compared to other loans, the checklist is generally straightforward when applying. Many payday lenders only require a few personal and financial details and documents, like a valid ID and proof of income, before approving your loan. This can reduce the time and stress that can go into gathering a long list of documents.
3. Fast access to funds
When immediate cash makes all the difference, payday loans can deliver. Borrowers have near-instant access to the money from a payday loan, which typically amounts to a few hundred dollars. And fast means fast — upon approval, electronic funds may get deposited into your bank account the same day or the next business day. You might also be able to pick up your cash in person the day you apply.
4. You can get approved without good credit
While traditional lenders have stricter requirements, payday loans are built for everyday people with everyday needs, supplying a little extra cash when you’re in a pinch. And because these loans are small, with a repayment term of only two to four weeks, many borrowers – even those with poor or no credit – usually qualify.
5. There’s no collateral required
As an unsecured loan, a payday loan doesn’t require an asset like a car or home to qualify. Instead, payday loans provide manageable amounts based on what you can afford to repay with your next paycheck.
But lenders often require some type of guarantee that you’ll pay back the borrowed amount on the due date agreed upon in the terms and conditions of your loan. You may write a post-dated check for the lender to cash as repayment or provide written consent for the lender to withdraw funds from your bank account electronically.
The bottom line
If faced with financial stress between paychecks, a payday loan can equip you with the right tool for short-term relief. From the convenient application process and relaxed requirements to quick access to cash, the benefits of a payday loan might be just what you need to get by.
