Payday loans are the best way to resolve a financially difficult situation by raising fast cash. You can use these loans to pay for unexpected expenses like excessive electricity or phone bills, breakdown of car which is not covered by insurance, or some health emergency which is not covered by insurance. Let us look at some of the benefits of a payday loan
Fast approval and disbursal
If you provide the necessary information, most lending agencies approve a payday loan almost immediately. The speed is even more if you go through a loan broker. The application process is simple and can be completed online on the official website of the loan broker. In fact you will be able to get the funds on the same day or at the most the following day. It does not matter if you apply for the loan on a weekend or even a bank holiday. With conventional loans you may have to wait for days if not weeks for the loans to get approved and disbursed and this may be a hindrance if you are in an emergency situation.
Convenience
If you go through a loan broker then all the procedures for application and approval are conducted online. Neither a face to face visit nor a phone call is necessary. You can complete the application process from the comfort of your home or office and the approval will also be sent to you online. Another advantage of a payday loan over credit cards is that you get cash with a payday loan, whereas with a credit card you can only purchase services or products. The paper work involved in the payday loan is also minimal.
Protect your credit rating
The short repayment period can seem to be a shortcoming, but in fact it is an advantage. This is because you may have one or two years to repay an instalment loan, but anything can happen within that time and you may end up defaulting on your loan. This in turn can have a negative impact on your credit rating. On the other hand the tenure of a payday loan is around 7 to 30 days although some lenders also provide payday loans for longer duration. You can simply repay the loan in one go and get rid of it, thus protecting your credit rating.
What do you do if you have bad credit?
Even if you have bad credit then some of the reputable loan brokers in the UK have an answer to it in the form of personal loans bad credit. It is not that a credit check will not be made for your application because that is illegal in the UK. A credit check is mandatory for all lenders before they provide a loan. However, the good loan brokers in the country have tie-ups with specialist lenders who understand that an individual may have a bad credit score and still have the ability and the intention of repaying the loan. This is the reason that with the help of loan brokers you can get a payday loan or personal loan even if you have bad credit.
