What Are Payday Loans Most Commonly Used For?

What Are Payday Loans Most Commonly Used For?

Online loans offer a fast and easy way to secure the emergency cash you need for an unexpected expense. In the past, you would have needed to visit a credit union, bank, or other lender in person to fill out a physical application. In many cases, you would have then waited a few days for the lender to approve your loan request and send you the money.

Convenience

Online payday loans are typically more convenient than in-person loans. Instead of having to leave your house to speak with the lender in person, you can complete the entire process at home. In many cases, you do not even need to talk to anyone on the phone to receive your cash advance.

Speed

Online payday loans also tend to be faster than in-person loans. Of course, you save time by not having to go to a payday lender location in person. But the process tends to be shorter, too: submitting an application on your phone or computer takes less than ten minutes, in most cases.

Additionally, the best payday loans online can provide you with the funds you need in as few as 24 hours, giving you fast access to your loan money. If you need cash during an emergency, having rapid access to your loan is crucial to making the most of payday loans tennessee for yous your online payday loan.

Range of Options

Applying for a payday loan through one of the online lending marketplaces on our list gives you access to a broader range of loan options than you would see at an in-person lender. Marketplaces work with dozens of lenders to connect borrowers to the loan that meets their needs. Utilizing one of these networks makes it easier to identify a loan with the most flexible terms and lowest interest rate.

Most people use payday loans when they have an emergency expense and desperately need cash to pay for it. The fast fulfilment of these loans makes them suitable for small, short-term financial needs.

Is There Such Thing as an Instant Payday Loan?

No lender, whether online or in person, can instantly provide you with the funds you borrowed. Lenders need at least a few hours to review your application and transfer the funds. Similarly, you should never agree to a loan term without scrutinizing the fine print, which takes time.

The fastest installment loans can provide you with your funds within 24 hours. If a lender claims to offer instant loans, you can assume it is trying to scam you.

Can You Get a Payday Loan with Bad Credit?

The best online payday loan lenders offer loans to those with bad credit scores. However, in most cases, the lower your credit score, the higher your interest rate will be.

Some payday loan lenders do not perform a credit check when reviewing your loan application, while others will only perform a soft credit check to verify your credit score. If you have bad credit, look for lenders that advertise their loans for those with a bad credit rating or no minimum credit score.

Is It Possible to Get a Payday Loan Without a Credit Check?

You may be able to find some lenders that do not perform a credit check. In the case of a traditional payday loan, lenders might not need to know your credit score, as they would have your post-dated check available as security for your loan. However, be aware that if a lender does not take your credit rating into consideration, it will probably charge a steeper interest rate and high origination fees.