As most American households live paycheck to paycheck, it's no surprise that unexpected expenses can derail a family's finances. Everything from a car repair to an emergency room visit can devastate the monthly budget, forcing people to pawn off their heirlooms or rack up huge credit card balances. Gigantic fees and confusing repayment structures can make these loans difficult to repay, if the person in need can even qualify!
In an effort to understand payday loans, I spoke to Eastside Lenders. A solid and well-respected lending agency, they were able to explain to me the intricacies of short-term lending and give examples of when a payday loan is the best option over other lending products such as credit cards or lines of credit.
Easier Application Process
Traditional banks require everything short of a blood sample to qualify for a loan. Your credit score, debt load, past repayment history and even employment record can all be called into question. All the while, the reason you need money in the first place is going unpaid. If the reason is a car payment or medical bill, your credit may be trashed while the bank takes its time reviewing your documentation. With a payday loan, none of that is necessary. There is usually no collateral required, and all you need is ID and a recent paystub.
Instead of languishing through a multi-step application process, a payday loan is usually approved and cashed out to you within days. This means that if you need cash quickly, a payday loan trumps traditional lending options. You can make financial moves almost instantly, which can save you late fees or other costs associated with delayed payment.
Some loan agreements look like they are written in Mandarin. The repayment schedule can be a nightmare, and the total cost of the loan can be far higher than you originally anticipated. In contrast, payday loans are quite simple. You are given a lump sum in exchange for a lump sum payment in the near future. It is easy to understand and there are no hidden loopholes or fees.
A payday advance may not always be the right choice. However, they do have multiple advantages over traditional lending methods such as credit cards, lines of credit or collateral loans. If you need money in a hurry, contact a lending company like Eastside Lenders. You will be able to access cash quickly to meet your emergency needs.