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Easy and Quick Personal Funding: Payday Loans Vs. Other Loans

Nearly everyone needs some help with money every now and then. Life happens. For some people, getting a loan is extremely difficult due to a myriad of factors. Payday loans are one of the most reasonable solutions if you have trouble getting other types of loans. They differ from most loans because they are generally easier to access and repayment is dictated slightly differently.

Many people think of payday loans as personal loans, but they are not the same. Payday loans are better for short-term, relatively minor expenses for people who may not even be able to access a personal loan. Here’s a brief overview of what sets payday loans apart.

Best Option for Poor Credit

Payday loans are very accessible for just about everyone. They have a very high acceptance rate regardless of poor credit. Low or no credit score is the major hurdle in getting any type of loan for many people. What can they do if there is an emergency? For anyone who is struggling financially or has hit a low point, the risk of falling even deeper into trouble can be made much worse if they run into a situation where they need money fast. Payday loans are a smart choice to keep you afloat.

All You Need

To get a payday loan, all you need is an open bank account and a paycheck. It’s that easy. As we already mentioned, most lenders do not conduct a full credit check or they do not let poor credit deter them from approving your loan. Do some research and use caution when choosing your lender, as there are always those few out there that are looking to get borrowers in a payday loan trap.

How to Choose a Lender

To avoid choosing a lender that may take advantage of you, there are some key things to look for before taking that payday loan. Lenders such as are unique on the market in that they provide flexible repayment and terms, guiding borrowers through the payday loan process with care. A good lender will work closely with you to determine the affordability of your loan so that you don’t end up in deeper financial distress. Many payday loan lenders will tack on an increasing interest rate that usually starts at around 0.8% per day, but reliable lenders offer fixed rates with no added fees. Moneyboat, for example, sets their fixed rate at 0.7%, significantly lower than most other lenders. Moreover, they offer direct loans rather than through a guarantor as many payday loan sites will do. Lastly, when you deal with any financial institution, always look for a payday loan lender that keeps your privacy a priority.

Payday loans are not a long-term financial solution, but they can be an absolute lifesaver for anyone in a pinch. If you are wading through a bit of a rough patch and you are in need for emergency funds, a payday loan may be the perfect option.

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