Trying to decide on what type of loan to take out is a big decision. You might wonder which type of loan will best suit you and your needs. There are lots available and many are very well-known or used a lot and others have been around for a long time. However, payday loans are a lot newer and this means that there are people that do not know that much about them. This is why people may question whether they are the right loan for them. It is important to be aware of the main features of the loan and then you will be able to work out whether it is a loan that will suit you and your needs.
With a payday loan no credit check is done. This means that if you have a low credit score then you do not have to worry about whether or not you will be approved. It might be the case that you are unable to get any other loans because you have a poor credit record and so this may be a good option for you. However, do not think that if you have a good credit score it means that you cannot use the loan. They are available to anyone and so if you feel that it will suit you then it is wise to use it regardless of your credit score.
One of the biggest advantages of a payday loan is how quick they are. Not only is the application process speedy and simple, you will get the money fast as well. Sometime sit can take a long time to apply for a loan because you have to fill out so much complex paperwork and this will just not be the case with a payday loan. You will also find that the money appears in your account much more quickly. Payday loans tend to be processed very much more quickly than other loans. Offices tend to be open 24/7 and so even if you need money outside of business hours you will still be able to get it. You will also find that the money takes only a few hours in some cases to appear in your checking account. This is much more speedy than other types of loans and means that they are the ideal thing to help you out in an emergency.
The loans are short term and this can be a good advantage for those that do not like having an outstanding debt for very long. The loan has to be repaid on your next pay day which means that it will only last a few weeks. You will then have to repay in full including the fees and interest. This means that if you are the type of person that worries about being in debt, you will not have to worry for long as the debt will be cleared pretty quickly. As it is repaid on pay day then you should be able to afford it as you will have had the money form your pay check enter your checking account. The lender will also set up a direct debit so that it is easy for your to repay the loan and there is no chance that you will forget.
Lump sum repayment
Some people worry about having to find money to repay loan instalments every month. This can be tedious and if you want to treat yourself to some things then you might have to wait until you have completed those monthly payments until you can buy it. Getting it all repaid in one lump sum means that you will be able to get rid of the burden of the debt quickly and no longer have to worry about it. Many people really like being able to do this.
However, you have to decide whether these features are important to you. You need to decide what is important to you and whether the features of the payday loan will suit you. Obviously, other loans have different features and you may feel that those will suit you more. It may be that you have no choice though. If you have a poor credit record or need money really quickly, then there may be no other option available to you. Do remember though that lenders will vary a bit and so you may find that there will be different features available from different payday lenders. So, make sure that you check out more then one and compare them to be sure that you are getting one that is a closer fit to your requirements. It is good to spend as much time as you can in comparing them as you may find that you will otherwise end up with a lender that is not as good a fit to your requirements as others are.