4 Reasons To Use a Payday Loan Service
Short-term loan providers fill a niche market by catering to people who don’t qualify for traditional lending or who don’t have time to jump through all the hoops associated with it. From emergency vehicle repairs to making ends meet during the holiday season, people who use payday lending do so because they recognize the benefits.
1. It Is an Unsecured Loan
Payday lenders offer unsecured lending, which means you do not need to provide collateral in the form of the deed to your house or title to your car. However, because payday lenders don’t receive protection in the form of collateral, they often ask for your bank information and may take your loan payments out automatically. Even if they don’t, defaulting on your payments could mean debt collection or a civil court case.
2. There Are Fewer Requirements to Meet
Applying for a traditional loan has a lot more requirements and therefore takes a lot longer to be approved. Payday lenders who offer short term loans Mississippi are much more relaxed about their requirements. You must be at least 18 years old, have a government-issued ID, a steady source of income, and an active bank account. The entire process usually takes just a few minutes.
3. They Don’t Do Credit Checks
If you won’t be approved for a traditional loan because of a poor credit score, you can go to a payday lender instead. Payday loan businesses don’t check your credit score before approving your financing, and instead, verify your recent pay stubs to prove you have income and determine if you qualify. A lack of credit pulling is also beneficial because hard credit inquiries can lower your score. Keep in mind, though, that most payday financing companies also can’t help you build your credit.
4. They Are Easy to Access
Payday lenders now that people tend to come to them in a pinch, so these companies strive to make themselves as available as possible. Most cash advance lenders have websites that allow you to apply for a loan 24 hours a day, 7 days a week. These days, many physical locations keep traditional business hours, but a few of them do still keep their doors open 24/7.
The media tends to paint payday lenders in a negative light. The truth is that some lenders truly are unscrupulous, but the same could be said for some business in any industry. The key is to protect yourself by doing your research. When applying for short-term financing, ensure the company is licensed and insured to lend in your state, has a fair interest rate, and has an excellent reputation within your community.
