Emergencies do not wait. If you’ve ever gone through a financial struggle, chances are, you have run to a few friends and family to borrow money to sort out the financial problem. However, people do not always provide the financial help we need. So, what happens when you are financially stressed? What possible options can you explore? Well, if you have a bad credit rating, an online payday loan could be your only solution.
Online payday loans are quick cash loans that come with high interest since they are considered high risk to the lenders. An online payday loan can get you out of that tight spot fast by quickly solving your financial problem. The truth is, online payday loans have their upsides, but certainly, they are not for everyone. If you need to sort out an unannounced financial challenge, you can always get a payday loan at Timesunion.com. Read on to find out the pros and cons of payday loans.
The Pros of Online Payday Loans
- Online Payday Loans Have a Fast-Processing Time
Unlike traditional loans that require a long period to be processed and verified, online payday loans have a quick processing time and ideally, will take less than 24 hours to get the amount you have borrowed in your account. Some online payday loans will process your loan in less than five minutes. Since payday loans are designed for emergencies, they will always have that sense of urgency. When choosing an online payday vendor, consider working with one that has a simple application process and fast payout especially if you are dealing with an emergency.
- The Qualifications Are Simple
One thing you will love about online payday loans is that they are pretty easy to qualify. Compared to traditional loans such as mortgages and car loans, online payday loans are very lenient and almost everyone can qualify for a loan. All you need to do is prove that you are at least 18 years of age, have a social security number, proof of residence, and a source of income. Some payday loan vendors will also ask you about your current debts.
- You Can Set Your Loan Limit
Ideally, online payday loan lenders determine your loan limit amount by checking your monthly salary or income. This means that if you have a bigger salary, you can borrow more and if your monthly income is not very large, your loan limit will also be lower. This is a great advantage because it ensures that you will not borrow more than what you are able to pay every month.
- You Get to Use the Money on Anything
Getting a payday loan online gives you the freedom to use your money as you please. Want to go shopping? No problem. Want to settle your rent arrears? Your lender will not dictate what you should do with the money you have borrowed. This flexibility of online payday loans gives you peace of mind as you will not need to explain how you will use your money and why you are getting the loan.
- Online Payday Loan Lenders Do Not Check Your Credit
If you have bad credit, then you will greatly benefit from online payday loans. This is because payday loan lenders do not check your credit and therefore you do not have to worry about your loan application getting rejected because of your poor credit score. Once you meet the vendors’ requirements and you submit the required documents, you can rest assured that your payday loan will be approved no matter how bad your credit is. The truth is bad credit can make your life difficult but with an online payday loan, you can quickly sort out that financial problem you have.
- You Do Not Need Security
Compared to other loans such as car loans, online payday loans do not require security and therefore you will not need to provide your personal property. In the event you do not pay, the lender will not seize your personal property. However, you need to know that if you default, the lender can forward your details to debt collectors or can pursue legal action in order to collect the balance.
The Cons of Online Payday Loans
- Online Payday Loans Can Be Expensive
Because payday loans are riskier to the lender, they tend to be more expensive. Ideally, for every $100 borrowed, the cost of the loan will be between $10 and $20 and if you default or you are not able to complete the payment within the first payday, additional fees are added to your loan. Ensure that you apply for a manageable loan that you can pay within the given period to avoid persistent and late-night calls from debt collectors.