Payday loans have a bad reputation. It’s no wonder, considering they can come with industry-high interest rates and intimidating collateral requirements. However, it is also important to remember that, if used appropriately, a payday loan really can help you out of a bind. It’s the people who misuse the payday loan concept who complain the loudest about payday loans, so it’s sometimes easy to forget that there are payday loan recipients who use payday loans responsibly and to their advantage. If you feel that you could be of the latter group, then here are five reasons to consider a payday loan:
Borrowing alternatives. Anyone who has ever had to ask to borrow money from family or friends knows how very uncomfortable the situation can be. What’s more is it can put a real strain on that relationship until the money is paid back. Avoid this sticky situation by going to a payday lender.
Limited loan amount. One good thing about a payday loan is that it’s rather difficult to get in over your head with the loan amount because payday loan limits are strict and small. Consider the alternative of getting a credit card with a max in the thousands and it becomes apparent how getting a payday loan can help assuage the temptation to overdo it.
Qualification process. There is no other loan qualification process that is as fast and easy as that required for a payday loan. If you can prove your identity, residence, and income, you can literally walk into and out of a payday loan center – cash in hand – in a matter of minutes.
Going without. Consider for a moment that you don’t get a payday loan and, instead, just skip that car or credit card payment, or wait to fix your car. Now weigh the cost of a payday loan against the cost of late payment fees, or having to skip out on work or ride the bus. It may cost you less in the long run to get a payday loan.
Credit reporting. Payday loans don’t report to credit bureaus unless you fail to pay and they have to collect. That means you can get the help you need, right away, and no one will ever have to know about it.
See? Payday loans really aren’t all that bad. It’s just a matter of how you use them and, as always, being informed is your best defense against financial pitfalls down the line. Take the decision to get a payday loan seriously, and your payday loan will do exactly what you expect it to.
About the Author: Kimberely Dosh is a full-time writer with a focus on finances and loans. She also enjoys using technology to enhance her business, and can often be found using Metrofax email faxing and other services to make her life easier.