15 Nov, 2019

Advantages Of Payday Loans

Payday loans are a newer concept as compared to credit cards or personal loans. While the latter options are great, they have their own set of issues that people have to deal with. For instance, with interest rates and charges, you end up paying back a higher amount of money than you borrowed over a longer period of time. Payday loans, while new, have a few advantages: 1.     They have a quick and easy process The whole process is so quick and easy that an individual can apply for a […]

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Payday loans are a newer concept as compared to credit cards or personal loans. While the latter options are great, they have their own set of issues that people have to deal with. For instance, with interest rates and charges, you end up paying back a higher amount of money than you borrowed over a longer period of time. Payday loans, while new, have a few advantages:

1.     They have a quick and easy process

The whole process is so quick and easy that an individual can apply for a loan and have the money in their account in half an hour or even a few minutes. Standard banking does not have this kind of speed. All the person has to do is fill out their personal details.

2.     There is no minimum amount

You have the option of borrowing as little money as you want, even as little as R600. Most of the credit card companies, on the other hand, think of this amount as very less and lending this amount would not be worth their time or investment.

3.     There is no long term issue

Since payday loans entail short term lending, a person will not have a long term issue on their hands. This means that you will only have the debt for a month or so and will not be stuck repaying it for the next 6 months. Some people assume that if they default, they will be in a lot of trouble. However, this is not true. The companies offering payday loans are completely aware that some of the people might not be able to pay back their loans, which is why they have devised their business plans covering this point. The maximum that will happen is that you will be banned from asking for these loans again.

4.     You will be accepted easily

It is highly likely that they will accept you. In fact, payday lenders tend to accept riskier individuals as compared to standard banks. This is due to the fact that they lend smaller amounts over a shorter period of time and therefore the financial risks associated are smaller.

5.     The fees and charges are mentioned up front

All of the fees and charges are mentioned upfront. This is due to the fact that payday loans have suffered sufficient bad press and as a result they have to make sure that all the charges and fees are mentioned up front along with the representative APR. This means that you will be aware of how much you will be paying back without incurring any unexpected or hidden payments.

Payday loans are known to be easy, quick, and less scary as compared to traditional loans, and this means that people do not have to think twice before going for these loans. Additionally, payday loans can be available everywhere and all you have to do is browse through to figure out which one is providing you with the best plan.

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