The benefits of payday loans

If you have any financial emergency, a payday loan is one of the quickest ways to raise money. You can use them to settle unresolved bills and settle the loan when you get your next paycheck. Many people prefer payday loans to other loans for the following reasons.

When you apply for a payday loan, the approval is almost instant and the money is accredited to your account.  The longest it can get you to get the money to your account between 24 to 28 hours. Some lenders provide the funds within minutes if you don’t have any difficulties with your application and information. There are a large number of payday service providers in the market who work competitively to make sure their clients receive the money as fast as possible. You can’t compare payday loans to bank loans where it takes long to process and when you receive the finds you can’t access them for several weeks.

You can access payday loan services at your own convenience. Unlike the bank, you don’t have to travel for miles or book appointments to apply the loan. All the processes concerned with payday loan are done online. You can simply apply while you are at home or work. Payday loan services are accessible all day everyday meaning you can ask for a loan whenever you need it.

The money you receive from a pay day loan is accredited in cash.  People who receive credit cards can only buy goods and pay for services while with payday loans you can spend the money however you desire.

The basic requirement s needed to access a payday loan includes; a person above 18 years with a consistent income and a bank account.  As long as you meet these requirements, getting a payday loan is easy. Unlike conventional loan lenders, payday does not ask for credit scores or collateral.  You can get a loan even with a bad credit score as long as they have proof that you can pay the loan on time. They are more applicable to people than most loans because of their minimal qualifications compared to other loans.

When you pay your loan early or on time, you automatically qualify of a higher loan amount.  The process of loans increment is subsequent meaning the more you borrow and pay within time, the higher the amount you can borrow.  The loan limit to a payday loan depends on the lenders and government laws.  Paying your loans on time will establish good relationship with the lenders and you can always have.

The short repayment period of the payday loan protects your credit from bad scores. Within a month, you can come up with quick money to repay the loan which means it will not reflect n your credit. The more you pay the loan, the higher chance you get to borrow big bank loans.

Payday is a quick and easy way to borrow money which makes it convenient for emergency situations. . Paying your loan grants access to bugger loans .You can access your money immediately and pay it back with low interest.

Smart alternatives to payday loans

Payday loans are the quickest and most convenient form of loans. They are very tempting when you have financial emergencies. All you need to do is apply online for a loan and receive the money within a few minutes. People do not realise that payday loans have high interest loans and you can suffer serious consequences if withdraw the payments even a few minutes after the deadline.  Unable to keep up with late payments, many face excessive penalties and additional fees. If you are in need of a loan, here are some alternatives.

Ask for a loan from friends and family. They are more likely to provide you with a loan without much screening. Most friends and family will not impose any interest on the loan. The time limit for loan payment is much flexible when it comes to friends and family. They are less likely to pressure you when they know you have financial struggles

You can ask for an advance from work.  If your company policy allows it, you can take advance salary. This is a smart option because you won’t have to pay the loan back.  The only repercussions are that you won’t get your full salary in your paycheck at the end of the money. If you use the money wisely, you won’t have to ask for another advance in the next month.

Use your credit card as a loan option.  Just like conventional loans, credit cards are hard to obtain but their risks do not compare to those of payday loans.  Instead of a payday loan, apply for a credit card. Within two weeks or less you will have your credit card. You can use it to purchase goods and services.  Make sure you pay your credit on time to avoid a negative credit report. With a bad credit report you will have it hard trying to get a credit card.

Take some of your emergency funds. If you have a loan set aside, you can use some of it, especially when you are having a financial emergency. If you have enough money in your savings account you can use it all and save more later. With emergency funds, there are no interests because it’s all your money.  If you don’t have enough money in your emergency account you can find ways to make quick money. Garage sales and taxi driving are the easiest way to make money fast.

Borrow from your life insurance policy or retirement benefits.  If you have been saving on a life insurance plan, you can take a loan.  This loan has no payment deadline and if you don’t pay the whole loan, it is distracted from your death benefits. Money loaned from the insurance policy is to paid back fully with accumulated interest. Borrow from your retirement if you only need a small amount and you are sure to pay it back fast. When you pay back the loan, the interest is directed to your account.  The time limit for this loan is within 5 years.

Payday loans vs. credit cards- which one is better

Currently, more people are using payday services compared to credit cards.  It is relatively convenient to obtain loan for a payday lender than it is to get a credit card.  If you have found yourself in an emergency situation that need quick finances then you have had the option between the two.  There have been sparkling debates to determine which one is better than the other, with both sides getting their fair share of supporters. Here as a review comparing the two

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With a credit card you can simply take money out of your account and with a payday loan, you simply have to apply online and the lenders transfer the money to your account immediately or within the day.

If you do not have a credit card, you will have to apply for a new one and wait for around two weeks to get on. Both the credit card and payday loans can be applied through a computer or a Smartphone.

Time and use

For a credit card, you have access to the funds for a long time. The time is usually set to around one to three years, depending on the lender’s terms. You do not have to reapply for another credit card every time you are in need of money. This can be helpful when you have a financial emergency

With payday loans, you have to apply and wait for approval every time you need funds. As long as you have an unpaid payday loan, you are not eligible for another loan. Payday loans are not so helpful if you have a loan and are looking for funds for an emergency.

Amount and payment

Most credit cards lenders give you large sums of money and don’t expect you to pay back right away. This helps you plan on a payment method and save well before having to pay the loan.  You have the options of paying minimum monthly, quarterly or yearly payments until the debt is cleared.

Most payday loan lenders have a minimum amount that is set by the government. You cannot receive an amount that is more than your monthly income. The time limit to pay most payday loans falls within a month. If you don’t pay on time you may face serious penalties

Interest rates

If you borrow money through credit cards, interest rates are added to your loan monthly.  This means interest rates increase more if you don’t make the arranged payments.  When you receive credit cards, you are not charged to transfer the money to other accounts. If you have a good credit report, the interest rates on your loan are decreased.

When you receive payday loans, the interest accumulates immediately but they do not go up until the payment period. For late payments penalties are applied. Interest rates are increased subsequently until you finish paying off the payday loan. Your credit score does not matter when it comes to allocation of this loan.

My pick

Pay day loans are good if you are looking for short-term quick cash. If you manage your payments well you will not suffer consequences concerned with interest rates. With payday loan, the more you borrow and pay the higher the loan limit becomes.

How to avoid payday scams

Payday loans are one of the most popular ways to acquire easy loans.  You can conveniently acquire a payday loan and pay the money back on your next paycheck.  The requirements to get the loan are easy to surpass for many people.

Most of us don’t questions why payday loans give easy money to almost anyone. We fail to realize that some companies and people aim at taking money from unsuspecting people using payday loans as a disguise.  Payday scams are more common than you think and it can be hard to tell a trusted lender and a conman apart. Here is how you can avoid payday scams.

Before applying to any payday loan sites, check for the licence.  A legitimate payday loan company must comply with all legal laws concerning money lending.  Payday sites with licences are good to borrow form because you can take legal actions in case any problems occur.  Fraudulent payday loan lenders are unlicensed or operate outside your region to avoid any government regulations. This means when you borrow money from them, your services are not protected and they have power to apply their own laws.

Do not provide your personal or confidential information.  People attempting to scam you and steal your personal identity may be on the other end of the screen. Payday loans do not require more than age confirmation, income and an account to deposit your loans. Any site asking for more may just be a scam, with people waiting for information to use it for their benefits.

Look out for hidden fees in the agreements. Before you take out a loan, you should learn the interest rates, loan expiry dates and consequences for late payment. Read and understand the terms of service even before creating an account.  Hidden fees are applied to unsuspecting customers and they feed the interest of the lender. If the interest rates are two high, avoid taking the loan.

Look for information on the company to see their track record and whether they have past violations. If they do, investigate on the information to check if it is reliable.  Look at their ratings and reviews, you may find some important information about the company.

Scammers disguised as payday lenders will ask for and advanced payment to cover registration and service costs. Remember, payday loans do not charge anything except for the interest on the loans. If you encounter such a situation, report the company immediately.  Genuine payday lenders collect their money and interest upon the provided deadline.

It is easy to deal with payday services. All you do is provide the required information and ask for a loan, you receive it almost immediately.  However, there is a disadvantage to this; it is easy to deal with one on one communication so you can clearly understand the terms of the service. Opt for a payday loan service with contact information or physical locations where you can talk to a representative in person.

Not all payday services are scams, but do not just borrow money anyhow.  Make sure you follow these tips to escape any form of fraud.

Everything you need to know about a payday loan

 Payday loans are convenient for people with financial emergencies. If something has happened and you need money to sort it out right away, you can take a payday loan and pay it back as soon as you get your salary. Many people take advantage of this loan service even when they don’t need the money urgently. If you are not careful payday loans could cause you serious financial issues.

What are the requirements of a payday loan?

Most payday loan lenders demand only few qualifications from an individual for them to be able to apply for a payday loan. Your must be age 18 and above to be able to create an account in any payday loan site.  They ask for any form of identification that provides your age and origin. You can provide a national ID, social security number, passport or drivers license. Your identification must be valid. The second critical information is proof of income.  The lenders want to ensure you have the ability and finances to pay back the given loan. You can provide your past income cheques or work contacts. The last requirement is a checking account where they will deposit and accredit their loans.

Lenders will verify your income, check your bank account and make sure your identification is valid, then approve your loan request. The money is then deposited in your account and you receive an email of message on the term of service, interest and the payment deadline which is usually within 30 days.

The amount you qualify for depends on the lender’s terms of services. Some lenders can give you as much as your income, others offer only a limited amount. Payday loans accumulate interest as soon as you receive the loans. The interest does not grow between the period of receiving the loan and the payment deadline. If you don’t pay the entire amount on time, interest starts accumulating on the funds you owe the lender. When you pay your loan early, you increase the chances of qualifying for a bigger loan.

Payday lenders do not check your credit card before approving loans. This means you can get a loan even when you have a bad credit. Payday loans activity will not appear on your credit card; instead they verify income through your bank account as their credit check.  Your payday report therefore appears on the bank statement. Some credit card companies use the bank statement to make their credit card reports.  This means if you don’t pay your payday loan on time, it may appear on your credit report. With a bad credit report, you will have less access to bigger and more useful loans from banks.

As long as you pay your payday loan on time, it will not affect your credit card score. It is best to you avoid taking payday loans unless you have a financial crisis or emergency.  Look for an alternative before settling for payday loans.  You can take a credit card, insurance loan an advance, making sure payday is your last option