If you have an emergency, are in a financial bind and have nowhere else to turn, Payday Loans could be exactly what you need. Payday loans get a lot of negative publicity, but there are a lot of benefits to getting one. While you don’t want to get loans all the time, it could actually help your credit if you get one once in a while and manage it responsibly. It could improve your borrowing history and put positive marks on your credit report.
These type of loans are usually easy to be approved for. You’ll usually just need to present a few important documents such as your identification card, proof of income such as a pay stub, and your social security number. As long as you are employed or have some sort of income coming in from somewhere, you will usually be approved. Most payday lenders will require you to have your own bank account such as a checking or savings account, but some are able to just give you cash. In some cases, you could access the money they lend you in less than 24 hours.
Payday lenders do not typically check your credit score. They will approve you as long as they know you can pay them back the next time you are paid or sooner if possible. In an emergency, payday loans can help people who need to go home for an unexpected funeral or are hit with unexpected financial obligations. There is no appointment required. You can usually walk into a lender’s office and be seen the same day.
Some disadvantages to payday loans are that they generally charge higher interest rates. If you don’t make your payment for some reason, they are legally allowed to take you to to court in an attempt to get those funds back. They are not collateral loans so they can’t repossess your car or anything like that, but you have to remember they have your account information. They could take the money that you owe them from your account without warning. It is only dangerous if you make a habit of borrowing money and keep having to get new loans to pay off previous loans. It is then you get trapped in a debt cycle.
In conclusion, loans such as these can be beneficial when paid on time and only borrowed once in a while. They’ve helped many people who have no where else to turn for money and are broke until the next payday. Use them wisely and take advantage of the benefits they do offer.