23 Jun Why Is Applying for a Personal Loan Better than Payday Loan?

People apply for loans due to various reasons. However, because of the different loan types available, getting the best deal depends on choosing the most suitable loan type for your needs. For example, between payday and personal loans, one should be more beneficial than the other. But why is a payday loan better for instant needs? Here are some factors to consider.

1. Shorter Pay-Off Period

Financial institutions designed payday loans as quick and easy fixes for unexpected expenses people may have. They have also made it a short-time loan, meaning people can pay them as early as two weeks from their borrowing date. However, it’s best to understand that shorter pay-off periods can mean higher interest rates. Therefore, the time you can pay off the debt or if it’s worth paying the extra percentage from the amount originally owed.

2. Easier Application Process

Compared to personal loans, payday loans take at least an hour to get approved. For example, Loan Me It—a 24/7 loan company—promises to process a payday loan request in an hour. They only require applicants to fill out two forms that provide their personal information. Meanwhile, personal loans take a long time as financial institutions must run a credit check on every applicant. In some instances, running credit checks can affect the interest rates they place on personal loans.

3. Disregards Bad Credit

Since payday loans do not require credit checks for approval, people with a bad credit standing should not worry about getting declined. It is an excellent benefit as there are instances where people would need money for unexpected expenses but can’t get any financial assistance they need due to bad credit scores. But through payday loans, they can still access the financial help they need to get through an entire pay period.

How to Apply for a Payday Loan

Applicants who want to apply for a payday loan must know their options. Different payday loan companies have other eligibility requirements. Therefore, it is best to ask their representatives what are the conditions they ask for.

1. Choose a Lending Company

Picking the best lending company to apply for a payday loan is the first step to getting the best deal possible. Look for a company with easy-to-understand terms and reasonable interest rates. For example, Loan Me It offers payday loans with easy payment terms and low-interest rates.

2. Fill Out Application Form

Once deciding on the lending company to work with, their representatives should tell you the best way to apply for the loan. They should detail the requirements for the application and provide the appropriate forms for you to fill out. The application form consists of two parts, asking for additional information about the applicant and submitting the requirements requested.

3. Wait for Approval

After submitting the application form, you can wait for the lender to approve your loan. It is possible to get a signal in less than an hour. The lender should tell you the amount you can borrow and the interest rates you will be paying. It is also essential to check if there are any hidden fees you need to pay to process the loan. You can get the money through convenience checks or online transfers if everything is okay.

Conclusion

Payday loans should be the last resort when it comes to borrowing money. If you can, you should stack up enough savings in an emergency. But accidents can happen, and you can’t control them. So if you need emergency cash, you can apply for a payday loan and pay it off in no time.

Loan Me It is a 24/7 loans company offering instant payday loans in Canada. We understand that there may be unexpected times when our clients need an extra hand in managing their finances. Therefore, we aim to provide the financial help they may need while being reasonable with the deals we can provide. Get fast cash near you today by applying for a loan on our website today.