Payday loans are your ultimate liberator when you are facing a situation which asks for immediate use of finances which sometimes you may simply not have. If you are a salaried person and have to wait for your paycheck for more than half a month and have to face this situation, you may find yourself in a strange condition, feeling short on cash and frustrated. This is where payday loans come in.
Payday loans are not a new concept. They have been here ever since there have been people who started lending money to those in financial crisis. In particular, payday loans are short term loans ranging anywhere from $100 to $1500 (depending upon your salary) and have to be returned within 4-18 days, usually until the day of your next paycheck.
Generally, a person on a good credit may meet these financial emergencies with his credit card. However, you may not have this privilege or possibly are fighting off a bad credit situation. When you apply for a payday loan, you don't have to worry about your bad credit at all as fortunately, no credit checks are involved in the verification process. Though a few people may tend to call these loans as a rip-off, the reality is that they truly are saviors in situations demanding immediate money without delay, especially when you also have to deal with a bad credit history.
Obviously, if you have to pay at over 500% APR for a single loan, it may easily look like a rip off. However, the payday loans industry has a solid answer. The high costs of running a business like this in depressed areas where only but a few banks or credit unions exist, and that too are not providing loans to those with bad credit history, enable the payday loans industry to charge such high interest loans. It may seem like that the payday loans lenders are a little too greedy, however, their ability to provide loans and help people with emergency needs but a bad credit history or any other problem which prevents them from requesting loans from banks makes them stand apart.
Also, compared to the lengthy, tedious and extremely boring process of loan verification, payday loans are extremely easy and quick to apply and easy to get verified for (it takes just an hour!). If you are a salaried person looking for immediate cash on short-term basis, all you have to provide is a valid ID, a checking account and a proof of your employment. The money is transferred to your account within just 24 hours and in some special cases, within just 4-5 hours.
Payday loans are usually requested by those with urgent financial needs and no other choice to avail. Also, customers of these loans see them as saviors from critical financial situations rather than rip-offs. Also, these customers understand the value of paying a little extra if their financial needs can be met almost immediately. It's like buying a coffee at airport for some extra bucks knowing that you could get it far cheaper anywhere outside. But since you have no other option, this is the best option!
0 comments:
Post a Comment