The Consumer Financial Protection Bureau defines payday loans as short-term, low to high-cost loans for small amounts. There have been mixed opinions regarding payday loans. Many take it for a no-no option with a debt cycle that can’t be overcome while many try to make you agree on borrowing one.
Let me tell you if cash is what you need urgently, payday loans are a boon and especially, in times when you feel financially helpless. You just need to plan your payday loans well in advance, and you’d realize the benefits of availing a payday loan that most people don’t realize while being less expensive in comparison to the interest charged by credit card advances.
Do You Qualify?
To be eligible for a payday loan, you don’t need a long, strong credit history but only a valid age proof with ID and proof of a regular source of income. Just meet these conditions, and you shall have a hassle-free process in your payday loan approval.
What is the Process?
The payday loan process gets as fast and easy as logging on to a website. Yes, payday loan services like PayDayMe have their entire process online. You just need to agree to the T&Cs with the correct documentation.
The loan amount is processed almost instantly. You would need to sign a post-dated cheque as an agreement to repay the loan amount on the date agreed.
What Are The Benefits?
We all have probably heard a lot from word of mouth, especially negativity on payday loans starting from hidden fees to the debt cycle. For a moment, let’s drop our thoughts and get a closer look at how beneficial the loan can be for yourselves?
- Payday loans are a great type of emergency loans, considering the swift loan approval process.
- Secondly, payday loans don’t impact your credit score. Any other short term loan does, and that changes a lot of in terms of eligibility for future credit.
- There are no past credit checks done to avail a payday loan, be it from an online or offline service, making the entire approval process hassle-free.
- In case you are unable to pay back the full amount by the due date, CFPB mandates the lender to offer you an extension or payback schedule in installments.
- Since payday loans can be availed for almost any need, you can always borrow one to pay back for your other traditional loan that is affecting your credit score. That way, you can build a good credit score along with being eligible for future loans.
- In many cases, a payday loan costs you less than a credit card advance in terms of the interest amount charged.
Payday loans are a great source of quick cash in case of emergencies. Just remember to plan out your repayment schedule, so that you don’t get into that small zone of financial debt. If you are looking for a good payday loan service, you can navigate here.