How Are Payday Loans Better Than Other Types of Loans?

All loans aren't the same. Be sure to compare them.

Every so often we find ourselves in a bit of a financial crisis, a cash crunch. Usually this is caused by a sudden unexpected emergency that requires cash to fix. For those living on a tight budget and paycheck to paycheck, this can cause big short term financial problems. If you have good credit, you might think about taking a loan out from your bank. These days the banks are being stringent with their cash and are not approving loans as often as they used to. And if you have bad credit, a bank loan is out of the question. That’s where payday loans come into play. Whether you have good or bad credit, payday loans are open to you. Payday loan lenders are eager for your business and have a much higher approval rate than traditional banks. And, your loan funds come fast.

Payday loans are short term cash advances, unsecured and can be obtained if you have a job or other form of regular income. The idea is that you borrow a small amount to hold you over until your next payday. They are a solution to short term cash crunches. Here are several reasons why payday loans are better than other types of loans.

Payday loans are fast. You have a cash emergency and you need cash fast. These loans are just that. First, they are easy to apply for. The application can be completed quickly and your approval notice is sent within a minute of you applying. Also, the cash you need is quickly deposited into your checking account usually within 24 hours. Other types of loans are not fast. Applications are long and complicated. They might take days or weeks to get approved. And access to the funds? That may take time too. If you need cash fast, get a loan that you can apply for fast and get access to your funds fast.

Payday loans are also highly available. You need fast cash but more importantly, you need cash. It doesn’t matter how fast something is if it’s not available to you. When you need cash it’s good to know that there is an option waiting for you. There are many payday loan lenders eager for your business and have funds available to send to you. Traditional bank loans may not be available to you. If you have bad credit, you may believe you have no options. That’s untrue. Payday loans give you access to cash even if you have no or bad credit. Lastly, you don’t have to go to a bank or fill out a bunch of forms from a bank’s website. Applying for a payday loan online is easy and there’s no paperwork or faxing required.

Payday loans require no traditional credit check. Whether you have good credit, bad credit or even no credit, payday loans are open to you. Other types of loans absolutely require a credit check and report your loan and the payments on that loan to the credit reporting agencies. What payday loan lenders will check for is it you bounce checks often or have taken out payday loans in the past and closed your checking account. As long as you have a job or regular income of some sort, a checking account and don’t bounce checks, your credit has no bearing on the chances of your approval.

Payday loans are only an online application away. Just fill out the online application truthfully and completely and you’ll get an answer from a lender within a minute. There are no papers to print out, mail in or even fax. The whole process is completed online. Other types of loans require paperwork, mailing in documents and sometimes faxing them in. Other banks want you to actually go to the bank’s branch and speak to a loan officer in person. This is not the case with payday loans.

There are many reasons why payday loans are better than other types of loans. They are fast to apply for, fast in receiving your funds, highly available, have no credit checks and have easy applications. If only everything in our lives were the same. Fortunately, you know that there are good options for when you have a financial emergency and are in a cash crunch. If you’re ever in that situation, apply for a payday loan and see for yourself how they are better.