Are you in dire need of instant cash? It is easy to gain access to much-needed funds if you apply for payday loans. Payday lending companies can process and approve your application in minutes and make the funds available within the day as long as you meet the basic requirements for such type of short term loans.
Understanding the Real Value of Payday Loans
Notwithstanding the negative information and arguments against this type of subprime lending service, this form of short term loan remains to be an important financial tool for consumers. It serves a specific purpose and should not be considered as an alternative or substitute to regular loans. There are instances where you will be faced with emergencies and financial situations requiring your prompt response or action. In such cases where you are running short of cash and payday is still a few days away, payday loans can be your best option in generating the needed funds. In short, this type of short term loan is your best option if you are in need of some form of bridge financing until you are able to sort out your cash position.
Payday Loan Application Process
The simple and fast processing is probably the key feature that separates this type of short term loans from the other types of loans. Consumers only need to comply with a few and simple requirements to qualify for payday loans. By furnishing the payday lending company with some information about your person, your citizenship and your employment status, you can already avail of the funds that you need within 24 hours. In fact, leading providers of cash advances and similar types of loans are now offering online services where consumers are no longer required to file their application in person.
Fast Turnaround by Payday Lending Companies
The application process involves a painless and simple procedure. A consumer only has to submit documents to establish his identity, citizenship, employment and income. While a bank account is not a stated prerequisite for application, consumers need to have an active bank account for the automatic fund transfer arrangement that comes with the loan agreement.
Consumers can avail of this type of short term loans for up to 30 days with an option to renew the loan account. However, it is important for you to understand that this type of short term loans is not meant to be used to comply with long term or recurring financial obligations. Payday loans are stop-gap measures which should run for not more than 30 days.
APRs and Payday Loans
The high Annual Percentage Rate (APR) is the main argument against payday loans. The APRs could run as high as 500% for some payday loans. This is the reason why some quarters claim that payday lending companies are engaged in predatory lending practices. However, such assessment is somewhat deceptive. Cash advances and similar types of short term loans are not meant to be used for more than 30 days and such financial tools are not designed as substitutes to regular loans. You must understand that such type of loans performs a unique function that is beyond the range of regular loans. You need to look at the nominal cost and not the APR when assessing the importance of payday loans.
