There are a number of stark differences between payday loans and other kinds that you will definitely want to know about. If you are in need of funds right away, a payday loan could be a real life saver. While it’s true that you are going to have a lot of different loan options, not all of them will provide you with the same benefits that payday loans do. When you take the time to learn about these differences, you will be in a much better position to make a good final decision.
Borrowing amount
Another difference between payday loans and all others is that the borrowing limit is usually somewhat lower, though it depends on a number of factors. The total amount that you are allowed to borrow with this type of loan will depend on what your credit is like, how much money you make from your job, and the lender you choose. Some lenders are more open than others to lending higher amounts. You can expect to get up to $2,500 to $3,000 with one of these loans, but only if you make enough.
Uses
Most people get payday loans because they have some sort of emergency expense they need to pay right away. A lot of other loans are meant for non-emergency expenses, so you will need to keep that in mind. One of the reasons that people who are in desperate need of cash tend to turn to payday loans is because there are so few other appropriate options available. Payday loans are sometimes referred to as “emergency loans” because they are used for things like paying off hospital bills, credit card bills and even auto repairs.
How fast you get the money
With payday loans you typically only have to wait about 24-48 hours to get your funds if your application is approved, but you can expect to wait much longer with other types. The reason that payday loans have become so big is because they can provide eligible individuals with the money they need quick. If you absolutely cannot wait to get cash for some crucial expense, this is certainly a good option to consider. The fact is that you will probably have to wait a lot longer if you get any other type of loan, which is sometimes just not an option.
Interest
The interest rates on payday loans tend to be higher than many other kinds, but it does depend on what your credit is like as well as the lender you choose. This is all the more reason for you to take the time to find the right lender, because otherwise you could end up paying more than you really need to. There are a lot of different types of loans, but payday loans usually come high rates. As long as you make a point to research your lender options though, you shouldn’t have any issues.
Approval
One of the great things about payday loans is how easy they are to get, even for those with questionable credit ratings. A lot of other kinds of loans can be quite difficult to get, especially unsecured loans. If you have been rejected for other kinds of loans in the past, you will definitely need to keep this option in mind. Many people get approved for payday loans every single year, and chances are you can too. As long as you meet the bare minimum requirements for this type of loan, you shouldn’t experience any problems with getting your application approved.
Final Thoughts
The fact is that payday loans are vastly superior to most other types in a number of ways. If you need money fast for some sort of emergency expense, you will definitely want to make a point of exploring this option very closely. There are quite a few different loan options that you are going to have, but not all of them will provide you with exactly what you need. As long as you get the necessary information, you shouldn’t have any difficulties whatsoever. Payday loans offer the perfect way to get money quick, especially for those who have less than great credit.
