5 Advantages of Payday Loans Compared to Other Credit Types
When you need to get quick access to money, payday loans are one of the best options for you to consider. Compared to other types of credit, they have several advantages that you simply cannot get elsewhere. Here are five advantages that come with payday loans compared to other credit types.
1. Speed
One of the big advantages of payday loans is that they are quick to get. You can decide that you need money today, walk into a payday loan store or apply online, and have money to spend within an hour in some cases. This simply is not the case with other types of credit. For example, if you wanted to get a credit card, you would have to apply, let the credit card company determine if you are credit worthy and then get approved, before getting a card in the mail.
“I’m the shy, payday loan fairy”. Unknown by alanosaur, on Flickr. This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.
2. Easy to Qualify For
Another big advantage of using a payday loan is that they are easy to qualify for. You do not have to have an excellent credit rating in order to get this type of loan. Most payday loan operators only want to know if you have a job and if you make so much money per month. Sure, they’ll do some checks, but they’re primarily interested in knowing whether you’ve got the means to pay back the loan. If you meet those qualifications, you can usually get your money. With other types of credit, you have to have a good credit score before you can get approved and the time it takes to get this approval is often very inconvenient when you have a financial emergency.
3. You Get Cash to Spend
With a payday loan, you actually get cash that you can use right away to spend on anything. By comparison, with a credit card, you may get access to credit, but you can’t get it all in cash. For example, if the card you get has a $10,000 limit, you might only be able to take out $2,000 in a cash advance. With a payday loan, you get cash that you can spend right away however you want.
4. Flexibility
Another advantage of payday loans is that they are flexible. You can get the money and spend it how you see fit without any restrictions. With other types of loans, this is not the case. For example, if you took out a mortgage or a car loan, you’d have to spend the money on a house or a car.
5. Convenience
Payday loan stores are usually very easy to deal with. They have convenient hours that are typically more flexible than what you’ll find with a bank. For example, they might stay open until eight o’clock at night so that you can deal with them, have email and phone support and some even have live chat. This makes it easy for you to get payday or cash advance loans and easier to make your repayments on time.
With all of these benefits in mind, it is easy to see how a payday loan can really help get you out of a financial bind if you need cash quickly. Just make sure you understand all of the terms and conditions associated with this type of loan before you sign up for one and you’ll be fine.
