A payday loan grants you access to funding regardless of your current financial condition or poor credit score. These loans target people with poor or no credit rating, little financial literacy, and need access to cash immediately.
But if you have bad credit or no credit, what other options do you have to access fast cash in an emergency? Don’t worry; a payday loan is here to help you.
Here’s a complete breakdown of the top 20 benefits of payday loans in the United States:
- Online payday loans are easy to manage
- A quick and easy application process
- Payday loans are suitable for people who have poor credit
- Early repayment of loans can reduce what you pay overall
- Quick money for emergencies
- Available at all time
- Online payday loans ensure that strict caps are always in place
- Funding is controlled by the borrower and not the lender
- Online payday loans help to save you funds
- You can use the money for anything that you wish
- Payday loans are short-term loans
- Trustworthy, authorized, and well-regulated lenders
- Absence of middlemen and the use of automatic and electronic transactions
- Confidentiality assurance and easy application of loan
- Instant access to funds
- There is a 14-day cooling-off period
- It is an unsecured loan
- Easy to access
- Fewer requirements
- Borrowers can choose their repayment terms
#1: Online payday loans are easy to manage
Most borrowers choose to manage their debt online, which is one of the many benefits of payday loans. This makes it easier for you to control your different payday loan offers.
When you apply for this kind of funding, you will be given access to a personal online account that you can log in to see your current loan balance, repayment dates, loan term, as well as the option of making an online payment on your loan offer.
Managing your loan online makes it very easy for you to make early repayments if you have the money available, and all these are made really easy with online payday loans.
#2: A quick and easy application process
The entire application process for online payday loans is done online.
Details from your application are mainly used to help properly match you with the best lender that suits your funding requirements.
#3: Payday loans are suitable for people who have poor credit
A person who has a bad credit history might find it difficult to borrow money from traditional lenders. Individuals who are considered to be high risk might have struggled with debt in the past, and the high-risk category can also include people with no credit history at all.
Online payday loans are the only way out for you!
#4: Early repayment of loans can reduce what you pay overall
By leveraging various modern technologies, We will always notify you of your loan settlement by sending payment reminders via mobile messaging or email.
This can also help you to ensure that you consistently have money in your bank account to cover payments that are taken automatically using a Continuous Payment Authority.
#5: Quick money for emergencies
Emergencies can not wait!
You may not have all the time in the world to wait for a traditional lender to approve your funding offer before you can meet up your emergencies.
Not only by offering you online forms to save you from endless trips to physical traditional lenders’ stores, but online payday funding also helps to transfer your money directly to your account within minutes of a successful application.
#6: Available at all time
Short-term financing is always available outside the traditional banking system.
The payday loan online application process provides you the opportunity to borrow money at any time of the day or night. It also allows you to manage your loan 24/7, making repayments or checking your balance as often as you like.
#7: Online payday loans ensure that strict caps are always in place
The Financial Conduct Authority has ensured that interest rates for loan products are capped at 0.8% – 0.10% per day.
The Financial Conduct Authority also introduced a total cap, which means that borrowers will never pay back more than double what they originally borrowed. For instance, if you have received an online payday loan of $200, you would never have to pay back more than $400 with interest and other fees added to it.
#8: Funding is controlled by the borrower and not the lender
When you apply for a loan on payday, you choose the amount of money you want to borrow and the repayment terms suitable for you. You will be provided with a piece of clear information about the overall repayment amount, any monthly installments (if your loan is to last for longer than a month), and of course, your repayment dates.
An online payday loan also allows you to adjust the amount you are trying to borrow and total the length of your loan term to fit your financing to your needs. Thus, we advise that you borrow the exact amount of money you need because not borrowing enough can leave you with further expenses elsewhere, which can, in turn, cause you more financial difficulty.
Also, borrowing more money than you really need will likely lead you to pay unnecessary interest on your loan settlement.
#9: Online payday loans help to save you funds
Through taking out finance to cover expenses that you cannot afford, you may reduce the total amount to pay overall. But still, it would help if you only did this when you are sure you can repay the loan by the end of the loan period.
Meanwhile, thanks to the strict regulations put in place by the Financial Conduct Authority, borrowing $100 from a lender would never cost you more than $24 in interest rate over the course of a single month.
Financial Conduct Authority’s strict regulations also ensure that you will never pay back more than double the amount you initially borrowed from a lender.
#10: You can use the money for anything that you wish
There are absolutely no restrictions on the use of the loans you borrow.
That being said, it is strongly recommended and advisable by professionals in the industry that you only use your short-term finance for absolute life essentials and emergencies.
#11: Payday loans are short-term loans
Some credit can put you into debt for more than 12 months, but with online payday loans, the risk of finding yourself in a debt trap is zero (0).
One important benefit of online payday loans is that they are intended to cover your personal funding for just a short period (usually in days or weeks), where your loan settlement will be due on your next payday.
#12: Trustworthy, authorized, and well-regulated lenders
The Financial Conduct Authority closely monitors the online payday loan industry.
All online payday lenders must register with the Financial Conduct Authority before being licensed to carry out any restricted activity (such as providing a loan or serving as a loan broker).
That being said, anyone applying for an online payday loan can benefit from the security that comes with the Financial Conduct Authority. Thus, borrowers are therefore advised to always look out for the Financial Services Register when dealing with an online payday loan direct lender.
#13: Absence of middlemen and the use of automatic and electronic transactions
Many traditional loan companies use brokers or middlemen to carry out their transactions. These middlemen usually take up about 10-15 percent of the deal as per their gain and service fees.
Online payday loans remove these costs by eliminating the need for these middlemen. The need for these middlemen is already significantly decreasing due to the ongoing business transactions steadily carried out on the internet.
Online payday lenders also make this really easy to work with, as you can now contact your lender directly and be immediately considered eligible to receive your funding.
Upon the approval of your loan request, all your funds are instantly transferred directly to your bank account without any need for further consent from any third-party provider.
#14: Confidentiality assurance and easy application of loan
Now you might be wondering, with online payday loans, is it safe to provide my sensitive personal and financial information to my respective direct lender?
Well, when it comes to online payday lending, you can be rest assured that none of your personally identifiable information cannot and will never be shared with anyone without your prior consent.
There are also no hidden costs, charges, and obligations when dealing with an online direct payday loan lender.
#15: Instant access to funds
Online payday financing is the most suitable way for dealing with unexpected and emergency costs that you never saw coming. This type of funding is so quick and easy to get, as you are guaranteed of getting all the cash you need to cater for that pending expense within the next 24 hours.
The biggest fear most people face while applying for a loan is the fear of rejection. Still, when it comes to online payday lending, all you will be required to provide is your personal and valid financial evidence to show that you can pay back the loan offer when it’s due.
#16: There is a 14-day cooling-off period
As with all forms of borrowing that fall under the Consumer Credit Act 1974, payday loans come with a 14-day cooling-off period. This means that you are entitled to cancel the agreement within 14 days if you change your mind not to borrow the loan offer.
If you cancel a payday loan, you will need to repay the loan amount and any interest accrued, but the direct payday lender will still have to refund you for any charges or fees you’ve paid.
#17: It is an unsecured loan
Following up on this, it is possible for borrowers with poor credit ratings to get instant access to funding, even without having to provide any form of asset or security as a means to secure the loan offer. In contrast, online payday direct lenders offer unsecured loans (funding that doesn’t require borrowers to provide any form of collateral), which means you are not directly putting your personal property at risk.
#18: Easy to access
The most significant advantage for most individuals related to payday funding is that online payday loans are the most convenient and quick-to-access means of financing.
Unlike most traditional lending companies, you can apply online in just a few minutes and have all the funds you need in your bank account as soon as the same day.
This is exactly what many people are looking for since these loans are often taken out to cover unexpected or emergency costs, such as the repair bill for a broken-down car or emergency home repairs. In addition to this, there are lots of choices available for borrowers.
#19: Fewer requirements
Many borrowers gain interest in online payday loans because of their flexible requirements.
Online payday loan acceptance criteria are often less strict than other categories of lending companies and traditional lenders.
Borrowers with poor credit histories and lower incomes are often able to get approved by our direct payday lenders despite the fact that they don’t meet the essential eligibility criteria of banks and other well-known lending companies.
#20: Borrowers can choose their repayment terms
When you apply for an online payday loan, you do so at your liberty and free will. Based on the urgency of your financial situation, you can decide the exact period of time your loan offer should last.
Thus, before you decide to apply for funding via an online payday loan, we strongly advise that you know the exact repayment period that works best for you.