Did you know there are more payday loan locations in the United States than McDonald’s? Maybe it’s because, much like the fast-food chain, this type of cash advance offers convenience, speedy service, and priced-to-sell services.
If you have never used a payday loan before, you might be curious as to the benefits of this type of personal loan. Why would someone want to use this service over another type of loan? We’re happy to answer, by sharing with you why others do. Check out these five tops reasons people prefer payday loans, and decide for yourself if it’s the right option for you!
1. Payday Loans Offer Small Loan Amounts
To fully understand the benefits of small loan values, let’s set up a scenario. It’s only a few days before your next paycheck comes in and suddenly you have a surprise bill. It could be the electric bill was higher than expected or your car had a sudden breakdown. Or, maybe you got the flu and need to pay the doctor’s bill.
Whatever the reason, you now need just a little extra money – enough to get you through the next couple days until you can pay it back. Can you go to your local bank and ask for a small loan? Maybe, but many banks don’t offer services like that. If they do, the application and approval process can be lengthy. In general, your credit score also has to be pretty good to get approved.
What about a cash advance on your credit card? You could, but cash advances on credit cards can be pricey – potentially charging you up to three different types of fees, including an ATM withdrawal fee, interest rates, and transaction fees. Interest starts accruing the moment that money leaves the ATM. And, credit cards have limits, so you may not have the available credit you need.
However, a payday loan solves all of those issues. You can borrow as little as $50 and, depending on the state you live, up to $1,000. Plus, the costs are clear; you’re charged a one-time flat fee based on a percentage of the loan. Your home state will dictate your interest rates, which you can check here.
2. Payday Loans Offer Fast Cash
Sometimes, time is of the essence. When the clock is ticking, other loan options just don’t come close to the speedy delivery of a payday loan. In fact, it’s quite a process to get a personal loan. Depending on the bank you choose, here’s how it generally works:
- Shop for a personal loan to find the best rates
- Provide in-depth personal information and fill out the application
- Personal loan application goes into underwriting, generally taking 72 hours
- You receive an approval anywhere from 3 business days to 10 business days
Then, there’s the risk. If you don’t get approved, you’ve now wasted days, if not weeks, waiting to hear a resounding ‘no.’
With payday loans, however, you can get cash fast. At LendNation, you can get cash as soon as the same day or the next business day. Same day cash is great – especially if you’re looking at late-payment fees if you don’t get the cash advance quick enough.
3. Payday Loans Are More Accessible
Money mistakes are, unfortunately, very easy to make. And to rub salt in the wound, a single mistake can stick around for years, impacting your credit score despite trying to turn things around. Even one mistake can make or break your ability to get a loan. Although there are options to get other types of low-credit loans, it can be expensive and time consuming.
Here’s where payday loans really shine through. Payday loans are designed for people with less-than-perfect credit and little credit history. You can still get a loan even with a poor credit score. It’s also why they’re designed to be smaller loans; we want to give you a chance to get from paycheck to paycheck with ease.
4. Payday Loans Offer a Quick, Online Application
One of the worst parts of applying for a personal loan is the lengthy application process. Let’s compare that with a typical payday loan application.
Personal Loan Application Process
- Visit a bank and speak with a loan officer
- Request an application
- Fill it out, and receive a list of documents you must provide to prove your application’s contents
- Documents may include: Returns, earnings statements, bank statements, passport, driver’s license, and more
- Your credit is checked, along with verification of your provided documents
- Drive home
- Wait to receive an approval or denial letter
- Go to pick up the check if you are approved
Payday Loan Application Process
- Visit a LendNation store or apply online and fill out the application in under 15 minutes
- Provide your bank account information and required documents
- Submit your application and receive a fast decision
- Receive your cash same day in-store or in your bank account the next business day
It’s easy to see that payday loans offer a simpler, quicker application process – and it can even be done from home!
5. Why People Choose LendNation
LendNation is more than a payday loan lender. We offer a variety of flexible loans and money services to those in need of cash including title loans, installment loans and payday loans. You can go to a local store if you prefer to talk to someone about options. Or, you can apply for a loan online if you want to get a loan from the comfort of your home. The right way of doing things is important to us and we strive to understand your unique situation. For more than 30 years, we’ve provided ways to make getting a loan easy and your cash accessible through simple, flexible options.
So, now you have it. Payday loans offer you the ability to get a little money a lot faster; we can help you if you have a low credit score; we offer quick and convenient applications; and we will treat you like a friend. Ready to decide if a payday loan is right for you? Great! Start your application today!