Reasons Why You Shouldn’t Be Afraid To Take Out Payday Loans – Scooptimes

Sometimes, life can hand you lemons, such as sudden illness, injury, or unexpected home repairs. Sudden expenses like these can put a huge dent in your budget. You’ll most likely need financial help to weather the storms.

Thankfully, you can approach a licensed money lender to assist you. You can easily take out payday loans for some quick cash.

The thing is, payday loans are notoriously controversial. You may not like them because you think these loans are predatory. You may even fear these kinds of loans will ruin you financially.

However, many of those fears are unfounded. Here are three reasons why you should not fear payday loans:

Payday loans can be a good source of quick cash

A payday loan is easy to apply for, and approval is usually fast. It can even be as quick as 30 minutes, and you can have your cash on the same day you applied.

You do not have to present a lot of supporting documents. Often, all you need is your payslip to prove that you have a consistent monthly income.

Anytime you find yourself short of cash because of an emergency, like a sudden home repair or hospitalisation, a payday loan can be a lifesaver, especially if you don’t have any other way you can get the extra money.

The best way to get a payday loan is through a licensed money lender. Don’t worry; this is perfectly legal and safe. Just make sure to find lenders listed under the Ministry of Law.

No collateral is needed

A payday loan is known as an unsecured loan, which means you do not need to provide a collateral. In other words, you don’t risk losing any of your possessions to get the money you need.

Do keep in mind, though, that payday loans are high-risk. They charge higher interest rates than other types of loans, and the repayment period is quite short – you need to repay it in full on your next payday. That’s the reason it’s called a payday loan.

One tip you can keep in mind is to avoid taking out the maximum loan amount as much as you can. That way, your next paycheque will only go partially into paying back the debt. Also, you can avoid the high interest rates.

You don’t need a good credit score

Payday loans work well even if your credit score is not stellar. Licensed money lenders will not even bother asking for your credit score when you apply for a payday loan. All they need is proof that you are earning a regular income. The documentary requirements for this kind of loan are actually quite lenient.

Conclusion

If you’re in an unexpected situation that sets you back financially, you may look into payday loans for a quick infusion of cash. When you take out these loans from licensed money lenders, they are not predatory.

The interest rates may be higher and the repayment period shorter, but payday loans can be viable options for financial emergencies. Just make sure that the lender you choose is legitimate and registered with the MinLaw.