Payday loan companies offer an opportunity for you to get quick cash when you need it most. Payday loans are affordable, they often feature low interest rates, and they are very efficient at providing short-term cash. Below, you will find some of the top reasons why online payday loans are misunderstood and are actually smart use.
#1 – Payday loans actually have reasonable interest rates
A lot of people will tell you that payday loans are too expensive, primarily because of their interest rate. The interest rate for payday loan is actually affordable. Most people believe that it is very high, only because it is measured as a yearly rate. The interest rate for payday loans is calculated as an APR. This stands for annual percentage rate. The amount of money that it takes you to pay back the payday loan is generally very small because complete repayment is supposed be accomplished within as little as 3 to 4 weeks. For this reason, the amount of interest that will accumulate throughout this time is pretty low and that is what makes payday loans affordable and reliable.
A payday loan company will generally provide fairly reasonable repayment terms as well. You won’t have to worry about having to have everything on your loan paid off within an incredibly quick time. They will be flexible and understanding if you happen to need a little extra time to repay the loan than the average customer. Of course, you will have to review these terms before you agree to the loan, as this is not something that can be negotiated afterwards.
#3 – Payday loans have a simple and easy application process
Payday loans generally have a much easier application process than other types of loans. Your credit will not have to be checked, your background history will not have to be checked, and the entire loan will rely completely on your current employment status. For instance, if you have a job and you receive regular paychecks from work, this should be enough to qualify you for a loan. They will not have to check your credit at all, no payday loan companies check credit, primarily because it is not an accurate indication of your ability to repay the loan. Payday loan companies believe that your current standing in regards to employment is much more efficient at judging the character of their clients.