Everything you need to know about applying for a payday loan
Conventional loans are one thing. Traditional financial institutions have been there from the start to help borrowers overcome their financial difficulties. However, what about online payday loans? Why are they causing a stir on the lender-borrower scene? Why are there hundreds to thousands of people benefiting from it, day in and day out?
A payday loan is defined by how borrowers can get their hands on a borrowed amount with the promise of repaying it by their next payday. They are considered short term due to the short repayment terms associated with them.
Why Choose Payday Loans?
1. Direct lender, direct borrowing
There is no middleman when it comes to working directly with verified online lenders for a payday loan. You will no longer need any “expertise” from intermediaries and in return, you will have to shell out for their services.
With lenders specializing in instant payday loans, you can ask for their help on your own and at your own pace. They have specialists ready to answer your questions related to payday loans and other online financial help they offer.
It’s less for you to worry about additional service charges, as there won’t be any for third-party organizations.
2. Easy process
The process of applying for a payday loan is quite simple. And that’s an understatement. You can find out how this is by going to your verified lender’s website and going through their initial loan application procedures.
You will only have to answer key questions that revolve around your personal identification, what is your source of income (and how much you have received regularly) and how much you plan to withdraw. In a procedure as simple as this, you can receive an estimate of how much you might be approved for after you speak with a loan specialist to close the deal.
3. Hassle-free qualifications
Compared to the above, the qualifiers are generally very simple and straightforward. All you will be required to present are identification documents (i.e. driver’s license, passport, employment ID card, etc.).
There is also an age requirement: borrowers must be at least 18 years old. Besides all of these, the related requirements may vary from one lender to another. For example, proof of residence and employment declarations may be required conditions. Yet, they are generally considered minor qualifiers.
4. Unsecured loans
Most payday loan lenders will not tell you to go through the tedious process of obtaining documents regarding your credit score. This implies that you don’t have to worry about having a not-so-perfect credit history.
This is an essential benefit that many find extremely useful. There are times when financial crises seem unforeseen and therefore go unprepared. A low credit score will not be a hindrance in obtaining financial assistance through payday lenders.
5. Quick approval
Another advantage of this type of loan is that the approval is usually as quick as its application and qualification process. This may differ depending on the discretion of each lender. Regardless, it usually takes as little as a few hours (from the time of the request) to 24 or 48 hours for you to receive a response. If there is a delay caused by an increase in requests, you can expect this period to extend over a few days.
Again, long waiting periods are often rare among payday loan agencies.