Payday loans have got quite a bit of bad press in the last few days. With seemingly exorbitant APR rates, customers borrowing every month and accumulating debts of over £1000, you’d be hard pressed to understand what, if anything, is good about them. But they do have many redeeming qualities. If you need money in a short amount of time, then choosing a payday loan may be the right option for you. We have listed the top 10 reasons to choose a payday loan. If you need a Payday Loan, you can get up to £1000 (in some cases) in a short amount of time and if approved by the lender, the money may be wired to your bank the same day. Check out our list and see if you agree.
#1. Good Rates
Getting a payday loan is usually a better option than paying late fees on bills, dealing with bounced checks, or paying late fees on your credit cards. As an example, each time you bounce a check, typically your bank and the merchant will charge a fee. With a payday loan, there are no hidden fees or set up administrative fees. The charge for taking out a payday loan is in the representative APR of 1734% but this is an annual percentage rate. Usually the duration of a payday loan is short term – payday to payday – not annual.
#2. It Improves Your Credit Record
Getting accepted for a payday loan and then paying it off on time will be reflected on your credit rating. If you show a pattern of taking out a loan and always repaying the loan under the agreed time frame, this will cause a beneficial impact on your credit record.
#3. Fast Approval
Typically payday loans will take no longer than a few minutes to fill in the application and if approved the money could be in your bank within 15 minutes. Imagine going into a bank and compare this to the time it takes to get a loan face to face with the bank personnel.
#4. Convenient and Safe Application
Applying for a payday loan could not be simpler or more convenient. Sitting at your computer from the comfort of your own home anytime of the day or night. You can fill out our application knowing that your personal information is kept private and secure. All payday loan websites will be protected by SSL (Secure Sockets Layer) so you are perfectly safe applying online.
#5. Money For Emergencies
If you have an emergency, you need the money the same day, this is where payday loans come into their own. You can get same day cash which is subject to approval times and the lender’s own policies. In most cases, funds will be deposited the same working day, if approved by 14:30. Approval may take up to 30 minutes in most cases and some will be 24 hours. .
#6. Borrow from £80 to £1000
Depending on how much you need, you can borrow anywhere from £80 to £1000. Please note that loan amounts are based on consumer’s credit history and ability to repay loan. First time borrowers may only be offered a smaller amount and as they build up a credit reputation with the lender the amount they can borrow will increase.
#7. Emergency Situations
One of our payday lenders recently surveyed their customers to find out why they use payday loans. They learned that 75% of their customers use payday loans to cover unexpected expenses or pay bills. The most popular reasons were to get a car fixed, pay for medical care, or to cover a monthly bill.
#8. Responsible Lenders
All payday lenders follow a commitment to safe and responsible lending. Borrowers are subject to the normal credit checks that most loan companies carry out but as a back up, they take details of your debit card and typically take the borrowed amount back from this. Payday lenders want to make sure that their customers know that payday loans cannot help you with long term financial obligations nor are they the right solution for those with long term credit difficulties.
#9. Customer Services
All payday lenders have very high quality customer services. Whether it be their friendly call centres, live chat support or immediate online assistance, you will get your questions answered in a timely manner or an issue solved. You can contact the lender which ever way suits you, via telephone, email or post.
#10. Financial Awareness
If you get into the situation where you need to take out a payday loan, it should make you a little bit more aware of your financial situation. Hopefully, this will be something that can help you in the future to budget and get back on your feet. It should help you recognize what you need money for and will make you start tracking your expenses. Payday loans should only ever be used as an emergency and not on a regular basis. If you find you are taking out one every month it would be wise to seek some kind of debt management.