Advantages of Payday Loans over Traditional Loans A payday loan is one of your best options if you need money ASAP for an emergency. It allows you to take care of any expenses that must be immediately covered before your next salary arrives. As this loan is payable with your coming paycheck, you need not deal with penalties that accompany late payments. There are many advantages offered by payday loans over more traditional types of loans, but the following are the most important: Instant Availability If you apply for a conventional loan, it will take longer for you to get your loan. Generally, you will have to wait a few weeks to get the funds, so if your need for cash is immediate, that will be a problem. Additionally, there is no assurance that you will be given the loan. After submitting your payday loan application, you will usually know the result within an hour’s time. There are even lenders that will give you instant feedback. If your application is disapproved, you can immediately approach other potential lenders.
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Payday loans are usually processed online. There is no need to book an appointment with a loan officer and you don’t have to keep calling just to get word from them about your application. Just send in your application on your website and wait for their response. Less Requirements Among the reasons payday loans are approved fast is that the requirements are rather few. Basically, you just have to provide evidence that you have a stable and verifiable income source. On the other hand, you may have to provide a collateral to get a traditional loan. Certainly, this is not necessary for payday loans. Just show to the lender that you have the ability to repay the cash you intend to borrow, and they will accommodate you. There might be other requirements, but none more complex as establishing permanent residence in your state and that you have an active checking account. Bigger Loan If you’re a new borrower, the amount you can loan will be limited, but as long as you pay on time, this limit can be lifted the next time you submit an application. Sometimes, you can get twice the amount of your first loan on your second loan. Credit Card Protection Finally, if you think a payday loan’s brief repayment period is a bad thing, you may be wrong – it can actually help you keep your credit rating high. A regular loan is usually paid within one or two years, and we know that things can happen within that period. You may fall ill, lose your job or be in any situation that prevents you from paying off your entire loan. This how payday loans become an advantage in terms of keeping your credit record clean.

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