Payday loans represent a very small cash loan credits that are offered for a short time under interest. They are small and unsecured and cost higher than traditional loans; however, the latter aspect does not make them less popular among customers.
Ease of access. One of the reasons of payday loan popularity is that they can be easily acquired in a very short time period and without much hassle.
Ease of application. Among all credit products payday loans are also one of the most simply to apply. Online process is fast and straightforward and there is not much information one is required to provide.
Keeps credit score good. Payday loans do not show up in a person’s credit report; payday lenders in general do not concern themselves with anything credit score-related. Thus, many borrowers choose this product above all others.
Bad credit is OK. There is no difference whether a borrower’s credit score is good or bad. The cause of refusal in many banks is not a cause for payday lenders at all – any borrower is welcome.
Instant cash access. Payday loans are the only credit option that allows getting cash really fast, if compared to bank loans – almost immediately. This is a feature that many people opt for payday loans – it is not really easy to find analogous option especially in financial emergency.
No need to have co-signers or provide collateral. Nest but not the last benefit of payday loans is that they do not presuppose to have any collaterals pledged against them, nor you need to come with so-signers. The process is much simpler.
No need of personal contact. There is no need to come to a payday loan store in person; nor is there the need to return in order to repay. All the transactions are both online and electronic and very convenient to a borrower.
Payday loans do have a great number of benefits as opposed to their traditional counterpart credit options. Surely, they are also more expensive. However, with regards to all the benefits, their higher rates make sense.