- Emma Parker
- March 11, 2023
Have you been in a situation where you needed extra cash, but none could help in the crisis? It happens often. It is indeed an awful feeling that makes one restless. At a time of crisis, one requires quick help. And the delay in getting one could sincerely impact the circumstances.
Thus, payday loans emerge as a swift solution to getting money at the time you need. It is perfect for emergencies and when you want to buy something without waiting until your paycheck.
The amount stays low but sufficient to meet urgent requirements.
However, you must be mindful of the purpose while taking the loan. These loans are competitively priced and hence avoid if you have discretionary needs.
Though these are unsecured loans, you cannot use them to purchase a car or house. But you can use it to pay the remaining downpayment on a car loan. These are exclusively for emergencies and something you cannot delay until another day.
The blog lists some advantages of Payday loans that may help you manage your finances better.
How Can a Payday Loan Help Manage Urgent Money Needs?
Online payday loans are a quick and easy way to close any financial gap without waiting another moment for help. However, to get one, you must make an informed decision. It is not free from costs and penalty fees.
Thus, understand the purpose and decide the right amount to fetch. Here are some ways payday loans ease up the convenience of getting easy access to funds:
1) Get one without credit monitoring
One of the best parts about these salary day loans is that you do not need harsh credit monitoring to get the loan. Your low credit score will no longer prevent you from applying.
You can get payday loans with no credit check from a direct lender if you meet the minimum income criteria. No credit check here implies- only a soft credit screening that does not impact the credit score.
A bad credit score can ruin your chances of qualifying for essential decisions in life like mortgage and car purchases. But a payday loan can help improve your chances to qualify for the same at better interest rates.
If you make regular payments on the loan, you can boost your credit score and achieve your life dreams without hassle.
2) Convenience of application
There are often helpful when you share an urgent need for cash and run out of time to visit the lender for loan amounts. Most lenders offer the convenience of online payday loans to help individuals get the needed cash anytime and anywhere.
It implies you can skip the queue or walk up to the lender. You need to provide basic details while applying early. It is a 3-minute application. You can apply and get instant cash after the application approval. You get the sum you need in one business day.
3) No prepayment charges
If you have the means and want to settle the loan early, you can do so with payday loans. Most lenders allow one the facility to clear the loans early because of the competitive interest rates they share. Clearing the payday loan debt implies reducing additional interest costs.
However, it is always ideal to confirm the same, or else you may face prepayment charges. It could impact your budget’s bottom line. Thus, be conscious of your choice and decisions while using these loans. Payday loans share much lower interest rates in comparison to credit cards. It implies you pay less and makes the best choice for your needs.
4) Flexible repayment options
Payday loans come with greater flexibility over repayments. You can choose to pay the money as per your affordability. Generally, lenders offer options like- Monthly, weekly, or yearly payments. You can pick the one that suits your circumstances better.
Flexibility in repayments offers one a sigh of relief and prevents one from defaulting. A rigid repayment structure with no flexibility may impact the finances and lead to loan default. And defaulting on payday loans can be a huge loss to your credit score.
5) Secured and safe transaction
Individuals often fear whether their credentials will be safe while seeking loans online. The fear is natural. But if you partner with responsible direct lenders for your needs, you can drop the worries.
Lenders first verify borrowers’ identity and financial circumstances before providing them with loans. It is the reason they ask for only needed data like- name, contact number, and email, along with the required cash needs and income proof. The less data you have to share, the better it is.
6) Collateral-free loans
Payday loans do not require collateral. So, you do not need to worry about pledging and losing your priciest possession in case of loan default. No lender can call you rigorously to get the money back in payday loans. However, they may issue a CCJ if you default on payday loans.
Thus, it is essential to research and get a conventional loan for your needs. It also helps save you time by eliminating paperwork and collateral-related documents. Before approving the document, you should read the terms and interest rates carefully.
7) Any purpose loans
You can use a payday loan for a variety of reasons. It could be:
- Pay electricity and energy bills
- Consolidate debts
- Medical emergency
- Invest money in business
- Childcare needs and expenses
- Bridge the rental payment
These loans work like 1000-pound loans, but you can borrow a higher limit – £2500. However, payday loans are more delicate to deal with. Be on top of your payments to clear dues timely.
- Trustworthy and regularised loans
The financial authorities personally authorise payday loan lending. Thus, the individual needing instant cash can rely on trustworthy loan providers. Before making a choice or choosing a lender, the customer must check whether it is authorised. It would help you skip the extra hassle and worries.
Emma Parker is a financial counsellor at LondonLoansBank and has been serving for over 5 years. She is a psychology graduate from the University of Glasgow. Since she has keen interest in the finance field, she pursued a diploma course in banking and finance that led her to opt for her current career. She assists people choose the best loan based on their current financial situation and credit score. As Emma understands how people react to money problems, she gives them a helping hand to solve their financial complications.