Reasons Why Payday Loans Are Easy to Get
Payday loans are easily the most popular type of small short-term loans. They are offered broadly around the state and people apply for them no matter that they interest rates are much higher than the ones for regular loans. Generally, such loans are offered for the period of 2 weeks or 30 days maximum and lenders do not carry out any serious background checks. This is one of the reasons for payday loan popularity among payday loan customers.
No Credit History Check
First of all, payday lenders do not practice credit history checks and this makes the whole procedure all the speedier. Surely, this is possible as payday loans are small credits and are offered for short term. No one will offer a car loan or a mortgage for a person without a credit check; however, banks do not issue even small customer loans without making sure that borrower is creditworthy. Payday lenders in this respect are worried only about customer being solvent. One of the requirements that a borrower should meet when they apply for a payday loan is the proof of income that is more than $1000 a month. If a person s able to provide such a proof, this is quite enough for the lender.
Very Fast Processing Time
Due to the fact that payday loans do not involve credit checks, the whole procedure takes less time than any other regular loan application. The only things that lenders require from their potential borrowers are the proofs of identity and income. A lender does not need much time to verify this information and you will get cash on your account in no time. It might take several weeks before you are approved for a credit card loan, instead.
One of the benefits of payday loans is that they can be applied any time - especially this refers to online loans. Online applications are even faster to process and it just takes several clicks to apply, get the approval and get the loan.
Easy to Compare
When it comes to bank loans (credit card loans, for instance), they might be cheaper in term of interest. However, their loans are harder to get and longer and more complicated when it comes to approval. They are also long-term for the most part, which might not be a plus when you just need some fast cash infusion.
No Credit Affect
Generally, all the loans are reflected on a person's credit history. That is why banks are so interested in it. However, payday loans are not and they won't affect your credit history state even if you had to extend a loan several times in a row.