Emergency Cash
Personal Cash Advance
A personal loan takes at least a couple of days to be approved and sometimes people don’t have that much time. This is true for example if cash for medicine is needed by a sudden accident or illness, a personal loan cannot solve this kind of problem but a payday loan can.
Few Requirements
Payday loans do not require thorough credit checks or collateral
which makes them very attractive for those who have bad credit or do
not own a property. In fact, requirements for a payday loan are minimal;
you just need to have a bank account and a job. Compared with all the
requirements needed for applying for a personal loan, especially at banks,
payday loans are a far more accessible financial option.
When time is an issue
When you don't have enough time, nothing compares to payday loans.
No bank or lender could ever approve up to $2000 in less than 24 hours,
the time needed to fill and approve all the paperwork required for a
personal loan takes far more than that. Payday loan lenders, on the other
hand, are used to process loan request within hours. There are few requirements
to check and before you know you get the money transferred to your account.
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A payday loan is usually due by the time your next paycheck arrives.
So you don’t have much time for repaying, nor have you, except in
certain situations, the possibility to extend the repayment program. This
loans are intended for an emergency situation, that being said, if you
won’t be able to repay the loan you should use the time you gain
to get approved for a more flexible personal loan, repayable
in installments.
Interest rate
Payday loans carry a high interest rate; this is due to the fact
that there is a very high risk involved for the lender. The truth is
that the lender lacks almost any guarantee that the borrower will be
able to repay what he owes. To compensate this, he charges a high interest
rate, and offers a short period of time for repayment.
Loan Amounts
Loan amounts are not high, usually the loan amount offered ranges
between $500 and $1000. However, in certain cases you may be able to
find lenders willing to lend up to $2000. But if you need more money
than that, you will have no choice but to wait to get approved for a
personal loan.
Great for those with Bad Credit
When you apply for a payday loan your credit report won’t be pulled,
so it doesn’t matter if you have low credit. You just will have to
offer proof of a job and provide your bank account number in order
for the lender to transfer the funds.
100% Online
There isn’t much paperwork involved. In fact, there are faxless payday
loans offered on the net. The whole process is performed online. It isn’t
difficult to find these lenders, there are many sites offering access
to lots of payday loan lenders so you can compare rates and see which
lender best suits your needs.
