How Payday Loans Work For Both The Rich And The Poor People In Need
Who in this world is exempted from having to undergo the traumatic experiences associated with money issues before? You might agree that everybody has his or her own bad situation about finances though at different levels. The affluent person, the average wage earner and the lowly individual on the street have their own fair share of this worrisome problem to handle. The rich could be very busy where to spend his wealth; while the worker and moneyless have always wearied their minds thinking where to source those precious dollars. The former could be the financier of payday loans whom the latter two could be sourcing for that personal loan accommodation. All are experiencing the same stressful predicament even at great variances between them. At any rate, let’s leave the rich lender and take a closer look on the plight of the two; where getting a payday loan will make a big difference on their days.
Why people resort to payday loans
As we have taken the viewpoint of the employee and the poor, we have assumed that both are in urgent need without other means at their disposal. This means that they were shut off from the other alternative credit facilities that they could have availed before finally drawn to this high interest credit scheme. If they have the resources, they could have been eligible for a credit union loan, a car pawn loan, or other consumer loans. They could have availed of a paycheck cash advance from their companies or a bank overdraft provision from their banks and those could have possibly bailed them out. All of these loan facilities are low interest bearing as compared to a payday loan which could run to as high as 460% annual percentage rate or APR. A traditional loan for a new car is charging only 4-7% APR, if you will take note. The difference in APR between the two is really frightening which could make these two borrowers really poorer.
However, borrowers are not daunted with this significant interest upon their bad credit loans for the simple reason that they were left with no option. They must take this last opportunity to get hold of the cash the soonest possible time so they can settle what they need to immediately before more bad things will befall them. Truly to them, the payday loan is heaven sent. They don’t care about the cost of acquiring the loans but set their focus on the solution it offers at that point of urgency in their lives.
Other reasons why
Aside from the lack of options left to their disposal, the bad credit loan is easy to get and convenient to all. Where can you find a loan that is credited to your account without leaving your home? This is possible with the online processing of this fast loan and with minimal or sometimes no documentary requirements at all. The application form is very short and simplified in such a way that all the data needed by the lender is all contained in a one page document. Simply search for payday lenders on the Internet and choose the creditor you want to apply. Of course make a comparison of their terms, requirements, amount of maximum loan allowed and speed to process the application. Once you have made the pick, simply click to their application form and fill it up then the submit button. If you happen to file your application with a broker, it will take a little time to match or refer your application to their network of lenders. The process is faster if you pick a direct lender. Once approved, the company will deposit the proceeds of the loan to your active bank account. In a couple of hours within the day you filed it, the money is there for you to disburse.
No other stipulations
Payday loans have no limitations on where you can spend them. They are clean short term loans that are generally collateral free. Your only guarantee to the lender is your proof of employment or in some cases a steady flow of income aside from your work. You are not required to have a good credit standing in order that your payday loan application will be granted.