For most people, payday cash loans are regarded as an expensive alternative to personal bank loans. While it is true that the imposition of a flat rate of 25% of the loan amount seems very high, borrowers should take into account the nature of the loan itself. In this article, we will discuss why payday cash loans are the more reasonable choice than personal loans.
When it comes right down to it, banks, and traditional lenders cannot compete with payday loan lenders in terms of speed. Borrowers can apply for a loan and get the money the very same day. Try taking out personal bank loans and you are bound to wait for weeks for a loan that you may or may not get. Payday cash loans are easily accessible online and the application and loan processing takes only several minutes to complete. The key to payday cash speed is the lack of credit checks. This also means people with bad credit histories are qualified for this type of loan option.
Lower Minimum Loan Amount
Personal loans take years to pay off. On the other hand, payday cash loans usually take 14 to 28 days to repay the loan. Payday loans offer just enough money to get you through your next paycheck. This lending option is a great solution for people who are in need of short-term loans to address current cash flow problems. Why be saddled with problems rooted from loans that take years to repay, incurring unwanted charges when you can simply apply for a small payday loan and pay it off within a couple of weeks?
High Approval Rate
In most cases, people with bad credit histories do not qualify for average bank loans simply because they are judged from their past financial mistakes. This is not the case for payday cash loan lenders. People with bad credit histories are not discriminated upon simply because they missed a payment or two in the past. They have equal chances of securing a loan as much as people with impeccable credit.
No finance expert would recommend taking out a payday loan lightly, particularly if you tend to apply for a loan every month. However, payday cash loan makes an economical choice if you are in a real bind.