When you need a payday loan, you probably want it on the same day you apply

Warning: Late repayment can cause you serious money problems

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Before anyone ever applies for a loan or any type of financial resource they have to consider quite a few things. An applicant has to fully consider if they truly need the finance and if so, know that the loan selected is affordable so they can repay the amounts back as agreed with the lender. Another thing to always consider before applying would be the actual loan in question, people can obtain short term finance such as payday loans over a single month or those which offer instalment repayments. In such cases an applicant borrows a set amount and then repay the balance over a number of months until the loan is cleared. Car based finance is another frequently used way of borrowing, people can purchase a car and then repay over a number of months or years and once the balance is fully repaid then the car finally will belong to that customer. Lines of credit such as credit cards can also regularly be obtained and these allow customers to purchase items or withdraw cash on credit and then pay their bill at some point the following month as agreed with the lender. In this article I am going to look further into the payday loan product and then explain what benefits it can offer to the consumers who use this resource as a way to borrow money over a short period of time.

One of the main benefits of what these loans can offer to customers is the speed in which they can be paid to the customer when the application is approved. (I am not referring to the speed of processing the application here, but the speed from approval to funding) Most of the applications for a same day payday loans are completed online normally in about 10 minutes. If a loan is then accepted then the customer can be funded that very same day as applying, however, if it is declined then the applicant will need to consider elsewhere to get the finance which is needed. There are some lenders offering these loans, that once approved a customer can be funded within just a couple of hours. The funding time can play a sizable part in payday loan borrowing as it is one of the unique product points. Of course the duration from applying to approval can vary from lender to lender, however most company’s now offer what is known as same day funding and will not charge for this feature. Having a loan approved and paid in a timely manner could be perfect for customers who need the money quickly due to an unexpected cost or bill.

Another benefit that a customer could be able to enjoy with the same day payday loan is the fact that they can consider accepting applications for customers with previously poor credit. People can get a poor credit score and a bad negative credit report if they take out loans and then simply do not make repayments and then the accounts enter a defaulted stage. Once an account is overdue and shows on a credit report then it will not be removed for up to six years. When payday lenders offer loans to customers with bad credit, what this normally mean is that they will look at your more recent history and not that from say 6 years ago. It does not mean that they will lend to anyone, irrespective of their credit. People should always once a loan is taken out make the repayments on time and as agreed with the lender as it really does have severe negative consequences for that person involved if repayments are missed and then not made up afterwards. 

In order to offer a balanced opinion I think it only fair to talk about the disadvantages of payday loans.

To begin with they are expensive compared to other types of borrowing. It is therefore always better to see if you can find cheaper credit elsewhere first, maybe from a friend or family member.

Another disadvantage is the consequence of missing a payment. Most payday lenders report to credit agencies. This could mean that future credit becomes less available or more expensive if you miss payments on your current loan.