Millions of Americans apply for payday loans every month. For most borrowers, the loans provide relief when they need cash fast in between paychecks.
Since the onset of the credit crunch in 2007, the average American household has been struggling to make ends meet. Today it’s common to find people working more than two jobs to make ends meet.
Despite this move, getting credit is not an easy task. Banks have tightened their regulations and locked out a majority of households from accessing credit. So where do the people with less than perfect credit go to when they need financing? The answer lies in payday loans.
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Americans prefer payday loans for various reasons. However, perhaps the most common reason is that these loans are easier to get approved. The typical payday loan gets approved in just under an hour, compared to a traditional loan that may take weeks or months to get approved.
The convenience of applying for the loans online is another factor that makes them attractive to people that need quick cash. Borrowers do not need to visit storefronts or bureaus to apply since the loans are available online.
To apply for a payday loan, borrowers fill a simple form online indicating their contact information, how much income they get, and the amount they wish to borrow. Some payday companies offer quotes from different lenders, providing borrowers with the most competitive quotes in the market.
The terms of payday loans are clear from the onset. Borrowers do not get surprised with hidden charges the same way they may with traditional bank loans. Most payday lenders charge between $10 and $15 for every $100 borrowed. The amount may have to be paid within 7 to 30 days depending on the terms of the lender.
Payday loans are one of the best credit options for American households that do not qualify for credit from banks and traditional lenders. The loans are easy to get approved for and take a short time to be disbursed. This explains why millions of Americans have opted to use the loans as alternative financing.