In recent years, the loan lending industry has had a big growth and now we are surrounded by all kinds of loan advertisements. You see them on TV, online and hear them on the radio. Sometimes it is hard for the borrowers to pick a loan that best suits the financial situation they are in. However, there is a certain loan type that attracts many borrowers. We are talking about payday loans. Payday loans for bad credit are probably the most popular type of short-term loans and it is safe to assume that this is due to the fact that they are available even to borrowers with bad credit score.
What is a quick payday loan?
A payday loan is a short-term loan which is also known as a cash advance. It offers the borrower a chance to take out a small amount of money which he must repay by the time his next paycheck arrives. While the media tries to portray them as being a dangerous financing method, quick payday loans have proven to be quite beneficial to many borrowers. By giving payday loans to people with bad credit score, payday loan lending companies offer solutions to many people who think that getting financial assistance is impossible for them.
Usually, the maximum amount for a 14-day payday loan is around $500. Due to the fact that payday loan lending companies have very few requirements and that you can apply for a quick loan even if your credit score is bad, quick payday loans often have high interest rates. This is why you must ensure you can make your repayment on time or you risk being dragged into a debt cycle. The annual percentage rate and all the fees and charges for a payday loan may be different in every lending company and the state which the company is operating in. Different states have different payday loan law regulations. You should udnerstand the payday loan regulations in the state you are living in before you go ahead with your loan application. Doing proper research and finding the right lending company is crucial and should not be overlooked.
Benefits of quick payday loans for bad credit
Despite having a bad reputation and being labeled as ‘risky’, payday loans are still as popular as ever. The reason for this is that taking out a payday loan has a lot more benefits than risks for most borrowers. Where others see a danger, payday loan customers see a way out. Here are some of the qualities that attract borrowers to quick payday loans:
- They give you options
Payday loans, among other things, are quite convenient. When you wish to apply for a quick payday loan for bad credit, you can visit a lender’s on-ground store or submit your application online. While it is most likely that you can find a lender’s office near your home or your workplace, the option of applying online right from the comfort of your home has proven to be quite attractive for most borrowers.
- You decide how you want to spend the money
While most traditional lending institutions enforce a certain limitation on how you should spend the money they are lending you, payday loans give you the freedom to do whatever you want with your money once your loan application has been approved. You can use the money to pay your electricity bills, repair your car or your home, as long as you do not do anything illegal. Lending companies don’t really care what you do with your money.
- Less paperwork
Unlike with most traditional loans, applying for a quick payday loan requires very little paperwork. There are cases where you don’t even need to send any documents throughout the whole loan application process. If the lending company requires you to at least send proof of your monthly income, it will just take no more than a few minutes to fax the required documents.
- The service is extremely fast
Once you have gone through the application process and you have delivered all the required information, the only thing you have to do is wait for your loan application to be approved. The application process itself takes no more than a few minutes, which is a big difference compared to traditional lending institutions where the application process may take weeks. Once your loan is approved, it will only take a few hours for the money to be transferred into your bank account. In case you have decided to apply for your quick payday online, you will have your cash by the following business day.
The fact that you can apply for a quick payday loan and have the money in your pocket within a few hours makes this type of loan a go-to choice when dealing with urgent financial situations.
Quick payday loans for bad credit give borrowers what most traditional lending institutions simply cannot offer – a fast way out. So if you are in a difficult financial situation and have a bad credit score you still have a chance at regaining your financial stability. Like with every other financial decision, you should be careful when considering a quick payday loan. If you are not sure that you will be able to make your repayment on time, you should consider other borrowing options such as requesting your family and friends to lend you some money.