Payday loans offer people a helping hand when they are in a financial bind.
What exactly Are The Payday Loans?
It’s a short-term loan, usually until your next payday, that can help you to cover unexpected expenses. Payday loans are intended for emergency type situations. For example, if you have to fix your car and lack the money. Or, if you missed some time at work and are now short of coming up with your rent. When used responsibly payday loans can be a tremendous resource for anyone that finds themselves with a cash shortage at an inopportune time.
The amount of interest paid when you take out a payday loan is usually calculated per $100 borrowed. In most cases, the fee for every $100 borrowed is between $15 and $30. While this is a high fee, you have to remember that this is a short-term loan. You won’t be making loan payments for months or years. You’ll just have this one time fee, then your loan is paid off. When you think of payday loans in these terms, you should be able to see how you can actually save money by taking out this type of loan, rather than dealing with years of payments on a traditional loan.
Why Payday Loans Are Better Then Other Quick Cash Options
While payday loans often get a bad rap, the truth is that they offer a valuable service, and they are a better option than many of the more common approaches that people take when they are short on cash. Chief among those approaches are credit cards.
Credit cards, in theory, are the perfect solution for anyone that wants access to cash when they need it. Your car has broken down and you can’t afford to fix it? A credit card can help! Can’t afford your electric bill this month? A credit card can help! See a new television on sale that you can’t afford? A credit card can help! That last bit right there is a perfect example of how credit cards can turn from helpful to a financial disaster in the blink of an eye.
When you have credit cards it’s too easy to simply charge something and pay it off later. That mentality has led to many people suffering from crippling credit card debt. The ideal way to use a credit card is to pay for a purchase, then pay off the balance before the end of the next billing cycle. But, for many people, the allure of buying something now trumps good financial sense. Before they know it they have a mountain of credit card debt that hurts their credit and places a huge burden on them as they struggle to make their payments each month.
Another option that people frequently choose over payday loans is over drafting their checking account to help cover expenses. The main problem here is that the overdraft fees charged by banks are often higher than the fees charged by payday lenders.
Why would you pay more for the money that you need than you have to? Plus, when you use your overdraft protection once to cover a cash shortage, the one time use can quickly snowball into a cycle of using it all the time. On the other hand, a payday loan is a one-time solution to your short-term cash problem.
Payday Loans Don’t Rely On Credit Checks
If you don’t have good credit then you probably know just how difficult it can be to get a loan from a bank or other traditional lender. Banks look at your credit history, and if it isn’t good then they determine you are a risk. That means either a much higher interest rate or not being approved for a loan. That means that for many people with bad credit, getting a loan is either impossible, or the terms make it unfeasible. One of the great things about payday loans is that they don’t rely on credit.
Lenders simply look at whether or not you have a checking account in good standing, and if you have a job. If you can meet these simple qualifications, there’s a very good chance you’ll be able to get the loan that you need.
But, if you have good credit, does that mean you should opt for a traditional loan? Not necessarily. If you have good credit, then you need to do everything you can to protect it. Nearly everything in the financial world involves credit. Did you know that when you apply for a traditional loan that your credit is checked? Did you know that simply by checking your credit, your credit score is negatively impacted?
That’s right, even if you don’t actually go through the process and take out a loan, just applying for a loan is going to hurt your credit score. So, even if you have good credit, you may not want to get a traditional loan for a number of reasons, chief among them being the negative impact that loan will have on your credit score.
Payday Loans Offer More Flexible Repayment Plans If You Ask For Them
One of the biggest selling points of payday loans is being able to pay off what you borrow quickly. Instead of making small payments for months or years, your loan is paid off on your next paycheck. But what happens if you can’t afford to make that payment and pay it all off at once? The good news is that if you contact the payday lender you can work out a slightly longer repayment plan. This will give you the flexibility to either pay of your loan quickly as you intended to, or you can pay it off in installments if that works for your budget better.
Why would payday lenders agree to this? Besides helping their customers, the payday lending industry is subject to oversight by the CFSA. According to the law payday lenders are required to offer an extended repayment plan to a borrower once a year. This allows people who may feel trapped in a cycle of getting repeated payday loans a safety net of sorts. Remember, payday loans are meant to be a short-term solution to an unexpected problem.
They were never meant to help you deal with long-term cash shortages. So, if you use them the way they were meant to be used you shouldn’t have any problems. But, it is still nice to know that there is a safety net should you have need of it.
Payday Loans Offer Help To Those That Traditional Lenders May Turn Away
When other lenders say no, payday lenders are more than happy to extend a helping hand in most cases. Does that mean that payday loans are only for people with credit problems? Not at all. Payday loans are a great option for anyone that needs to come up with some quick cash. It just so happens that payday loans happen to be the only real option for people with credit issues.
How Much Can I Borrow?
What you have to remember is that a payday loan is a short-term loan. You aren’t taking out a loan that you’ll be making payments on for years to come. Instead, you are taking out a loan that you’ll be paying off on your next paycheck. How much can you borrow? That depends entirely upon how much your paychecks are on average. If you have more questions about the amount you can borrow, or about anything else, we encourage you to contact us here at QP Loans.
We Can Help You Get The Money You Need Quickly
Here at QP Loans, we understand that if you are coming to us, you probably need a loan fairly quickly. That’s why we’ve made the application process so simple. You can apply in just a few minutes, and a few minutes later you can have the funds that you need. We really have done everything we can to simplify the process and would be more than happy to try to help you. Please, contact us today so we can get you the money you need.
If you are in a situation where you aren’t sure how you can come up with the cash you need to cover an expense, we may be able to help you. There is any number of reasons why you may be a little short on cash, and no matter what that reason is there is help available.
May be you got sick and missed some time at work. Maybe your car needed repairs. May be your electric bill went up more than you expected during the summer. The point here is that life happens. You can’t always predict the future, but what you can do is make wise decisions about how you get the money you need to cover yourself until your next payday. Don’t make the mistake of using overdraft protection.
Don’t fall into a pit of credit card debt you may never climb out of. Instead, contact us at QP Loans so we can show you how a payday loan can be the perfect solution for you.