Usually, a payday loan is a two-week term loan, normally about $100-$1,000 that is payable on
your next payday as a single lump payment. That’s how it works in most cases.
For those who seem to be unfamiliar if the term “payday loan” here are some other names it
goes by:
● Short-term loan
● Cash advance
● Paycheck advance
● Payday advance loan
● Deferred deposit transaction
● Bad credit loan
The Pros of Payday Loans
Below are the reasons some people prefer payday loans to other loan facilities available both
online and offline.
#1 They have Relatively Fewer Requirements
It is a standard procedure for most lenders to require proof of income, Social Security number, a
credit card, photo ID, and Social Security number. These personal details help verify your ability
to pay back the loan. Most payday loans are unlike traditional personal loans, which require
more details to apply.
Usually, all you need to apply for a payday loan is to:
● Have a government-issued ID or Social Security number
● Have an active bank account
● Have a regular job or other steady sources of income
● Be at least 18 years of age
#2 It’s an Unsecured Loan
Unlike a traditional auto loan, mortgage, or car title loan, you don’t need a personal property to
secure a payday loan. This means that if you fail to pay, you can’t lose any personal property
because of the loan.
Though this might be the case, bear in mind that you give payday lenders access to your bank
account as part of the loan agreement, which is also a kind of risk. Besides, there are other
measures at their disposal, such as taking to court or sending your debt to collections to retrieve
outstanding payments.
#3 They’re Easy to Access
Payday loans have a major advantage over other forms of loans, which is their ease of access.
Usually, you can get your loan from many payday lenders within 24 hours with the guarantee of
an immediate lending decision. in some cases, you can access loans 24 hours a day, seven
days a week, and apply online.
You can apply in as little as five minutes for payday loans, which can isn’t the case for traditional
loans.
#4 Payday Loan Approval isn’t Based on Your Credit
Unlike traditional loans that require a good credit history before your loan is approved, payday
loans don’t check for good credit history. Hence, you can rest assured that credit score won’t
spoil your chances of obtaining your loan. Therefore you should rely on payday loans to help
build a better credit score for future financial advancements.
Conclusion
Payday loan conditions and regulations vary from state to state. As of spring 2019, some states
banned payday lending.
These include the following:
● Arkansas
● Arizona
● New Mexico
● North Carolina
● Georgia
In addition to these, the District also Columbia banned payday loans. However, the regulations
vary from one state to the other. These regulations govern the highest interest rate (if any) cash
advance loans can charge, as well as the highest loan amount, loan terms, and finance charges
allowed. In 2019, payday loans still had lots of pending legislation.
When you find yourself in dire need of money, a five-minute payday loan application all you
have to complete to receive the cash you need. In the business world, time is money, and
lenders of payday loans are very aware of this. So you can visit our website today, with the
guarantee that you will receive your payment as quickly as possible.
