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.

Payday Loan and Cash Advance

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“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.


Arnel Ariate is the webmaster of Money Soldiers.

Click Here to Leave a Comment Below 22 comments
Payday Loans In Florida - May 1, 2013

Yes, i like the way you disclose your informative information about the payday, its nice when i read it and what a presence of mind you uses, great job keep it up, i will come back to read more post by you…

    Arnel Ariate - May 1, 2013

    Thank you.

Taylor@usapaydayloan - May 28, 2013

People who has applied for any payday loans must remember that the longer they extend the loan the larger the interest you need to pay. So it is advisable for everyone to apply for short terms loans or payday loan only to meet your sudden financial crises. Moreover it will be advisable for you to apply only for the necessary amount.

    Arnel Ariate - May 31, 2013

    Hi, Taylor. That’s right. Approach loans with caution.

Online Cash Advance Payday Loan - June 12, 2013

I am impressed with the way you have presented this information. The points you have mentioned in the article is very good and I feel that due to these advantages the payday loan are the best option for any unexpected financial situation.

    Arnel Ariate - June 15, 2013

    Thank you for the love, John. Payday loans can be your best option when used with caution.

Stephen - July 18, 2013

Really great information, Thank You. Many payday loan industry lends money online. Hardly 2 minutes is require to approve the loan and we get the instant cash in our account. I have great experience from 1stratelenders.com. This industry is really fantastic.

    Arnel Ariate - July 19, 2013

    Hi, Stephen. Thank you for sharing your experience. Hope someone else may find the information helpful.

      Stephen - July 24, 2013

      I appreciate your reply, Arnel.

        Arnel Ariate - July 24, 2013

        No problem, Stephen. Welcome back to Money Soldiers. 🙂

Quick Loans UK: Top Advantages You Should Know | Finances Online™ - July 3, 2014

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Hugo Shelley - December 27, 2014

No. 4 & 5 are really the reasons why I often choose payday loans from others. I just love the flexibility it gives me, and it is more convenient in my part and situation – specially those which we can acquire online.

Delores Lyon - March 5, 2015

Thanks for sharing this! I was considering a cash advance loan to get some money quickly, and this just shows that it is definitely a great idea. The last thing I want to worry about is whether certain loans will be able to get me money. With a loan like this, I will have the money in no time.

Anks - September 23, 2015


Yes, payday loans are provided for a period 10-15 days or may depend. We can compare payday lenders and go for what we want at that particular instance. These loans are recommended for those individuals who are unable to provide the additional collateral demanded by banks and other institutions.


Simon Brooks - July 13, 2016

Not many people think about it but payday loans really are a great option if you need to spend the money you get freely and without restrictions. As the article points out, most other kinds of loans are very specific in what you can or cannot spend them on such as car loans and mortgages. However, a payday loan may be a good option if you just need a little bit of quick cash, but can’t actually afford to wait until you get your next paycheck.

Kendall Ryder - August 15, 2016

I like that payday loans are easy to qualify for. There are plenty of people out there who need loans, but don’t have the credit for it. And, there are also people who just need cash fast and can’t take the time to apply for a credit loan! I like that payday loans can help these people in their needy times!

Olivia Nelson - September 9, 2016

I appreciate your advice on how a payday loan can be flexible and allow you to spend the money any way you want. I would imagine that if you have some pressing monetary issues you would want something fast and easy that you can spend however you like. My sister recently got into some car trouble and needs money quick, maybe a payday loan would be right for her.

Derek Mcdoogle - September 15, 2016

My sister has been having a really rough time financially since her husband passed away. You mentioned that a big advantage of using a payday loan is that they are easy to qualify for and you don’t have to have an excellent credit rating in order to get this type of loan. Do most cash advances have high interest rates? This could be a very good option for her right now?

National Payday Loan Relief - December 20, 2016

There are no advantages of a payday loan. It will simply make your life worst. Everyone face some emergency time that little cash required to get out of a situation. But before anyone takes payday loan should consider his/her financial condition, otherwise, it will be a burden and can make your life hell.

Frank Delaware - January 30, 2017

A friend of mine has been struggling with his money lately, and was telling me that he might need to get a payday loan to help him out. It’s interesting that you don’t need a good credit score in order to qualify! Since he has been trying to build back up his credit for a while now, it would be nice to know that he won’t have to worry about them using it for the money.

Marc - October 3, 2017

I think the main thing is the simplicity. Just applying online and getting a loan so fast as opposed to the bank where you have to meeting with a bank manager and then he will ask you loads of questions

Derek Dewitt - December 1, 2017

I’ve always been curious if it’s worth it to take a payday loan out or not. I like that you mention how, unlike credit cards, payday loans give you cash to spend right away. This would be really useful for those who need cash in a short amount of time who can’t afford to wait for their next paycheck. Thanks for sharing!


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