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HomeFinance6 Situations Where Only A Payday Loan Can Help

6 Situations Where Only A Payday Loan Can Help

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Falling short of cash can come when you least expect. In this situation, you need instant cash to save face. The easiest and quickest way to get out of the cash shortfall is to get a payday loan. This is a short term loan to help you survive until your next paycheck. It is the most effective solution when you need emergency cash for various needs.

How a payday loan works

After finding a reliable agency to get a payday loan, the money is immediately deposited to your account after approval. When you apply in person, the money is handed to you. Keep in mind that the terms of paying back the loan varies.

Some creditors might request for a post-dated check to guarantee payment while others make direct deductions from your salary. The duration of paying back the loan also varies. Some creditors need paying back in about 2 weeks or for several weeks depending on the agreement terms.

Situations where only a payday loan can help

Paying for an emergency expense

Living expenses today are quite high. This is making life hard with chances of failing to cater to some of your needs including emergency expenses. Perhaps you have an emergency bill to pay but with limited cash on you.

Getting out of this situation requires a payday loan. This avails you with quick money to pay off your rent arrears.

Bailing out a loved one

When loved ones get into trouble, you have an obligation to help them get out of trouble. This might include helping them out of financial trouble. Perhaps your loved one has a high medical bill or owes creditors money.

You can get instant cash money in Nanaimo by applying for a payday loan. This avails money to help your loved one get out of their predicament. However, ensure that you have the funds to pay back this loan in case they fail. This will save you from exorbitant interest rates.

Unable to get a bank loan

Getting a payday loan also comes in handy when unable to get a loan from the bank. After your application, you can get a payday loan in about 24 hours. Applying for a payday loan takes about 5 minutes unlike traditional loans from the bank.

After reviewing your application, the company accepts your offer immediately and tells you their rates. After agreeing to the terms of the contract, the loan amount is deposited shortly into your account.

Applying for a payday loan is a simple process. You can do it online with a likelihood of getting the funds in your account in about 30 minutes. The chances of qualifying for this loan are higher than those of traditional loans. And, you don’t need a plethora of documents to qualify for this loan. The criteria to qualify for a payday loan includes:

  • 19 years or older
  • Permanent address
  • Active bank account
  • Regular source of income

Having a bad credit rating

Acquiring a loan from a bank is quite hard when having a bad credit rating. Qualifying for a traditional bank loan requires having a good credit history. Luckily, you can get a payday loan without a credit check. This increases the chances of accepting your loan application regardless of your credit rating. And, getting a payday loan is quicker since there is no need to spend time going through your credit history.

Lacking security

The success of a traditional loan application requires having assets as collateral. You need stocks or other forms of investments for use as collateral to get a loan from the bank. However, applying for a payday loan doesn’t require collateral.

So, there is no worry about the lender seizing your property for defaulting on your loan repayment. Companies that give out payday loans need having an active bank account with regular income to mitigate this risk.

Paying a bill with a high-interest rate

Another situation that can make a payday loan the best solution is when having a bill or loan with high interest. Missing payment on such a loan puts you at risk of having to pay a higher interest rate. This makes paying back the loan even harder.

Fortunately, you can request for a payday loan that comes in a short while to pay off the other debt. This saves you from a hiked interest rate and denting your credit score.

Final thoughts

No one is perfect at handling money. Chances of ending up facing financial problems are inevitable. There is a risk of having to pay for an emergency and a high-interest loan.

Alternatively, you might just want to bail out a loved one. The quickest and easiest way to get money to handle the emergency is to apply for a payday loan. There is a likelihood of getting funds in your account in about 30 minutes after sending your application online.

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