If you need a quick financial injection to tide you over until your next payday, a payday loan may be the ideal solution.

Whether you need additional disposable income right now or whether your credit card has been maxed out - we’re going to discuss why payday loans may just offer the ideal solution.

Do you need extra cash?

Imagine the following scenario – it is the middle of the month, everything has been going smoothly and all of a sudden something horribly unexpected happens, the car breaks down or the fridge needs to be repaired, and suddenly you end up with an unexpected expense that has to be handled immediately.

How can a payday loan help?

When you experience a cash emergency, an online payday loan can help. Let us tell you why this is a brilliant idea and an easy solution to your given scenario.

Fun facts and features aside, there are many other benefits to payday loans that make them an even better option than your usual standard personal loan.

What are payday loans?

They are short-term loans of a small amount, that are always just a fraction of the borrowers’ income and are due to be paid in full on the borrowers’ next payday. These loans can be considered or thought of as a quick cash advance to cover unexpected expenses until you receive your next pay.

Another prominent feature of a payday loan is that they never exceed your affordability parameters and will always only be a fraction of your monthly earnings, therefore, the amount you qualify for is subject to your income and expenses.

Payday loans are convenient – here’s why

The beauty of payday loans is that they are fast and can be used for a range of purposes. You can apply online for a payday loan and have an answer on your loan request within mere minutes, the process is incredibly streamlined for your convenience.

Furthermore, once you have been approved, your loan amount will be transferred to you immediately and an automatic repayment has been set up on your account for your next payday so that you do not need to worry about remembering to pay your loan back on time.

Quick & easy loan applications

A payday loan application has much less paperwork and fewer requirements in order for potential borrowers to be approved. No need for multiple forms, proof of identification or bank confirmation letters. You simply need to fill out the short online application and voila you are done and ready to submit your application request.

Qualify for a larger loan amount

Once you have successfully taken out an online payday loan and your loan contract has reached its conclusion (you have received the loan amount and paid the loan off on your next payday), you are eligible to apply for a larger loan amount the next time you wish to take out another payday loan.

No security & bad credit rating? No problem

Possibly one of the best and biggest benefits of a payday loan is that borrowers are not required to produce any form of security in order to get a loan, nor do they need to have a good credit rating.

Even those with a bad credit history can still successfully apply for payday loans at any time, the only requirements are that borrowers are over the age of 18 and have a fulltime job.

Your credit rating is protected

Unlike other loan types, payday loans are unique in the sense that they protect your credit rating. This happens due to the fact that the loan amount is assured to reach contractual completion by your next payday, making it impossible to miss a repayment.

With other loan types which have longer terms (a few months or a few years), borrowers undertake the risk of facing a financial crisis such as a loss of employment which leads to missed loan repayments followed by a lower credit rating and creditworthiness.

Top benefits of payday loans

  • They're are unsecured
  • They offer small sums of cash which can be repaid by your next payday in full
  • No need to commit to long term debt
  • You can apply for a payday loan online in minutes
  • All documents and applications can be completed digitally so no paperwork or printing needed
  • Those with poor credit can also qualify for a payday or bad credit loan
  • Once approved you’ll receive your cash in minutes

When it’s best to avoid a payday loan

If you’re experiencing any form of financial difficulty including a loss of employment or an inability to manage debt, taking out a payday loan will very likely make your situation worse.

Taking out a payday loan to repay existing debts is also a big no no. This is because they come with high interest and may very well make your debt situation worse.

Instead of repaying your overdue loan and interest, you will have to repay a higher loan amount for this new loan, making it even more difficult for you when payday rolls around.

What other options do you have?

There are a wide range of alternatives to payday loans and this includes short-term loans and credit cards.

Short-term loans are a good option that may offer larger loan amounts and repayment terms that extend over a number of months. These two benefits may accommodate your needs better and be more budget friendly.

Credit cards may offer the best alternative as you can spread your repayments over a few months. Another credit card benefit is that the interest may be lower than that charged on most payday loans.

Unexpected expenses need a quick cash solution

We can not imagine that any single person would want to be faced with unexpected expenses at any given time, unfortunately, life happens when we least expect it or are poorly prepared for it.

Thankfully in this modern day and age, we are abundantly blessed with options to assist us in any given scenario life may throw our way. The next time an annoying financial hiccup arises, be sure to consider applying for an online payday loan.