Payday loans can be difficult to go through especially when it comes to repayment. They are loans that come with higher interest rates than most other ones do, and are meant to be repaid in lump-sum. The annoying part about these loans is the fact that they are needed to be repaid in wholesome. This can lead to a dicey situation if one doesn’t earn enough to compensate for his/her expenses as well as for the repayment of a payday loan.
People often prefer payday loans over traditional ones for various reasons. One is the fact that one can get them online. That means that one can access these loans at any time during the day or night, at a time that’s most convenient to the borrower. Since they are accessible 24×7, one doesn’t have to wait till the next morning or a weekday to apply and doesn’t have to visit the store only during “opening hours”.
The next benefit that one gets from choosing to apply for a payday loan is that they are quick solutions to one’s financial problem. Direct loan lenders offering payday loans do not include time taking procedures in their approval process which allows them to approve and fund their borrowers quickly, thus allowing their borrowers to cater to their emergencies without causing much of a delay, which is an advantage that traditional loans do not offer.
The third advantage of applying for a payday loan is that even bad credit holders can get funded. You see, payday loan lenders do not conduct hard credit checks since those are time taking procedures that do not allow quick funding. That’s why, majority of them instead rely on their borrower’s current income situation, which should ideally be a stable one. If their borrower does have a stable source of income on a monthly basis, funding is assured by them. That’s why, if a bad credit holder applies for these loans but has a stable income, he can manage to get funded by his direct loan lender. However, if he/she chooses to go to a traditional lender all while possessing a poor credit score, his/her request may not only be turned down but it may also cause a reduction in the credit rating, making it difficult for this individual to get funded elsewhere.
The next advantage of applying for a payday loan is that one doesn’t have to offer collateral. Again, processing collateral takes a while to get through which defeats the purpose of providing funds as soon as possible to borrowers. That’s why, even if one has a bad credit rating, he/she shall not be asked to provide security of any kind if he/she chooses to apply with a direct loan lender.
However, there is a disadvantage that comes along with applying for a payday loan. That is the fact that you have to repay your loan in lump-sum, which can make things difficult for borrowers who cannot take a traditional loan due to their own personal reasons. It can be due to wanting funds urgently, or not having the best credit rating or any other reason.
The reason why people prefer installment loans from banks is because they are easier to repay.
So, what if we told you that you can get an installment loan from a direct loan lender that offers the same benefits as that of a payday loan? Wouldn’t that be the solution you’ve been looking for?
So yes, the alternative to payday loans are installment loans offered by direct loan lenders that can be repaid in parts over the course of a few months. Installment loans from direct lenders allow you to get cash fast, with bad credit and without offering collateral at all. You also get to repay them easily since they’re not too heavy on your pocket when it comes to repayment and allows you to take care of other expenses of the month as well without losing every penny to repaying your loan.