Payday Loans

Are Payday Loans only for Those with a Poor Credit Rating?

Most people know that payday loans have no credit check and therefore they might assume that this means that they are only for those people with a poor credit rating. Although they were originally designed for those with a poor credit rating, it does not mean that they are exclusively for these people. It is worth noting that as no credit check is done the lender will have no idea whether you have a poor credit rating or not. Therefore, there are other features that payday loans have which might benefit people even if they do have a good credit rating.

  • They are quick to arrange – a payday loan can be very quick to arrange. This means that if you need money really quickly they can be ideal. Many loans will take a long time to organise with various bits of paperwork being posted back and forth. With a payday loan you can just apply over the telephone or online. The process is fast and it can be possible to get the money that you need within a few hours. Some lenders may take a few days, but this can still be quicker than a conventional loan. If you have a real emergency, then you may not be able to wait much longer for the money and therefore having this option of being able to get your money really quickly can be extremely beneficial.
  • They are for small amounts of money – as the loans are for small amounts of money they can be beneficial to some people. Often loan amounts can be high which means that you have to borrow more than you need. This leads to you having to repay over a long period of time or having large repayment amounts. This can mean that it is harder to repay. It can also be expensive if it is spread over a long period as the interest will be being charged for longer. By borrowing just a small amount of money you will be able to borrow less and the repayment should be more manageable.
  • They are repaid quickly – payday loans normally have to be repaid within a few weeks of taking them out. You will normally repay the loan in full on your next payday and so this is likely to be a few weeks away. This means a loan is likely to last less than a week.  This can mean that they are nice and easy to repay and are not stressful as the loan is cleared quickly. Many people would rather have a loan for just a small period of time and so this can really benefit them.
  • They are simple – payday loans are really simple to apply for, You can even do it over the telephone. They ask minimal questions and it can be very quick to give over all the relevant information and wait to see whether you are approved The money is quickly put into your bank account and the repayment is automatically taken out by direct debit so there is very little that you have to do or remember.
  • They are easy to find – it is really easy to find payday lenders. You can just search online and you will find lots. There are also comparison websites where you can find lots of payday lenders listed in one place. This means that it is quick and easy to find out more about your options and to see which lenders are there for you.
  • There is lots of competition – there are a lot of payday lenders. Although at first glance this might seem confusing it is important to understand that it means that you are more likely to get a good deal. With lots of competition it means that prices will need to be competitive in order for lenders to stand out. Therefore, you are likely to not be paying more than necessary.

Therefore, a payday loan is not all about credit ratings. There are many other things to it and many of them are unique to payday loans or something that not many other loan types have. This means that it is worth considering a payday loan when you are thinking about which loan to take out even if you do not have a poor credit rating. If you need money quickly, want to borrow just a small amount, want something that is simple and can be repaid quickly then they can be a suitable choice. Obviously, it is always wise to compare loans to see which will benefit you the best and with there being plenty of payday lenders to choose from you will be able to have a pick of a big bunch and hopefully find one that will be really suitable for you.

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