Advantages of a Payday Loan.

Advantages to Payday Loans

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Q. What are the merits of a payday loan?

The attractive thing about payday loans, is that there are no prolonged waiting periods before you receive a formal notice of approval for your loan. In a lot of cases, you can receive a decision on your application within minutes! Whereas conventional loans or a special arrangement with your bank would normally take at least a few days if not weeks. Furthermore, most payday loan lenders offer the convenience of being able to apply online or on the go, via smartphone technology, eliminating the need for faxing and bothersome red tape.

Depending on the lender, consumers have the choice to either have the loan released by the lender and directly deposited into their bank account without even the need of visiting the payday store, or if preferred can at times be collected in cash from the lenders local storefront on the very same day!

There are fees for a payday loan but if the loan is repaid appropriately on time without incurring any additional fees or penalties, then the initial loan fee may often be cheaper than the cost of having to bounce a check, re-connecting a disconnected utility, the additional bank charges incurred for exceeding an overdraft limit, the cost of exceeding the credit limit on a credit card or incurring late payment penalty charges.

Some major payday lenders also offer the option to make loan payments ahead of the allotted time frame, which in certain states may make you eligible for a refund of all or part of your finance charges or fees upon prepayment.


In general, most payday loans will not affect your credit status because most companies that provide payday loans do not report the information through to any of the three major credit bureaus (Equifax, Experian or TransUnion) as other conventional credit lenders would, thus leaving the borrower stress free in regards to other financial obligations and circumstances.

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