Why You Should Consider Borrowing
What's the point in payday loans? Well, if someone is credit poor and short on savings, but has an emergency of some kind - from a utility bill that's due, to a doctor demanding payment up front to see your child for a fever, to coming up short on your rent, to needing gas to get home to visit an ailing parent - short-term financial solutions, also known as cash advances, may be just the thing. Everybody needs someone they can turn to when they're in a spot of trouble. But not everyone has somebody like that. Some have split off from family or have made mistakes handling credit or taking care of other loans on time. But they still need a bridge loan from time to time.
Maybe they're a single mom with kids who need shoes, but your check is two weeks away. The snow and the rain won't wait until then to soak into their daughter's socks on the way to school, now will they? Or maybe they're a divorced man who has been forced by the court to put up child support that they want to pay, but which they can't afford. That leaves them a little short to get the axle replaced on their truck so they can get to work and make the bucks it takes to support themselves and their children. Well, an advance on their check might be just the right help - NOW - not in a week after they've missed so much work that their boss has to let them go.
Borrowing is especially helpful for those who haven't got credit cards or who have had problems with debt and so can't get a traditional loan or a new credit card. These are the core reasons that borrowing a payday loan could be just the ticket for many Americans:
- Simple - As you probably know, these financial services have the easiest loan application process going. Unlike other lenders, short-term providers don't ask everything from your last late credit card payment to your blood type. No, they want to know two essential things: How much do you want to borrow? And how will you take care of what you owe? This is about as straightforward as it gets.
- Fast - As you probably know, advanced funds can be applied for and paid out in as little as 24 hours. In the traditional lending industry, that is almost unheard of. But when cash is needed for emergencies, which by definition must be addressed A.S.A.P., time is of the essence. And payday loans or cash advances are the quickest way for someone in a fix to get the cash they need.
- Credit irrelevant - What difference does it make if someone made a credit card company mad by missing the due date one or two times? When borrowing, what matters is whether an applicant has a job that can be verified and a verified checking account. That's it. Plain and simple. Only those who've proven that they abuse this vital service in the past or who have falsified information on their application are denied.
- Small to large micro loans - Not every emergency costs hundreds of dollars. In the scenario above, a little girl needs shoes. A real emergency to a mother living in Chicago in December! But she need only borrow, say, $50 from her local lender. Why borrow ten times that as some traditional lenders would. Then again, a new axle, in the other example, can cost over $500 with installation. If a credit card limit put this person over the limit for that repair, it could really end up hurting financially. But with a payday loan, if his income allows, he can borrow up to $1,500 from many providers. And that range means flexibility for consumers.
So, why rely on these services from time to time? Because good people need them, plain and simple.