At least two days are needed to approve a personal loan, and sometimes people don't have that much time. For example, if you suddenly need money for medicine because of an accident or illness, a personal loan won't help, but a payday loan will.
Few Requirements
Payday loans don't require thorough credit checks or collateral, which makes them very appealing to people with bad credit or who don't own a property. In fact, you don't need much to get a payday loan. All you need is a job and a bank account. Payday loans are a much easier way to get money than personal loans, especially from banks, because they don't have as many requirements.
When time is important
Payday loans are the best way to get money when you don't have enough time. No bank or lender could ever approve a loan of up to $2,000 in less than 24 hours. It takes much longer than that to fill out and approve all the paperwork for a personal loan. On the other hand, payday loan lenders are used to processing loan requests within hours. There aren't many things to check, and the money will be in your account before you know it.
Most payday loans are due when you get your next paycheck. So you don't have much time to pay back, and unless certain things happen, you can't change the terms of the repayment plan. This kind of loan is meant for emergencies, so if you won't be able to pay it back, you should use the extra time to get approved for a personal loan that you can pay back in instalments.
Rate of interest
Payday loans have high interest rates because the lender is taking a big risk by giving you the money. In reality, the lender has almost no way of knowing whether or not the borrower will be able to pay back what he owes. To make up for this, he charges a high interest rate and gives the borrower a short amount of time to pay back the loan.
Amounts of loans
The loan amounts are usually between $500 and $1000, which is not a lot. But in some situations, you might be able to find lenders who will give you up to $2000. But if you need more than that, you will have to wait for a personal loan to be approved.
Excellent for people with bad credit
Your credit report won't be checked when you apply for a payday loan, so it doesn't matter if you have bad credit. To get the money, all you have to do is show proof that you have a job and give the lender your bank account number.
100 percent Online
There isn't a lot of paperwork. In fact, you can get payday loans online that don't need a fax. The whole thing is done on the Internet. It's not hard to find these lenders. Many websites give you access to a large number of payday loan lenders so you can compare rates and find the best one for your needs.
