Positive Aspects of Payday Loans

Pay day loans were devised to help out someone who was cash short before pay day.  The original intent was not dissimilar to that of popping into the pawn shop and hocking the family silver until the next pay day, and then redeeming it for a fee. This has the great advantage of providing an emergency cash influx for those who run short of cash, particularly those who are unable to obtain credit from other sources.  The borrower knows where he stands and what the terms are, the lender makes a handsome profit, and everyone is satisfied. This is just one of the positive aspects of payday loans.

Discretion is guaranteed with a payday loan and the application is not recorded with any of the three key credit bureaus. It is a person’s ability to repay the loan which is important, rather than their past handling of credit. Payday loans are only granted to those with a checking account and a steady income of around $1000 per month. The loan should be repaid in full on receipt of the next pay check.

The fact is that millions of Americans are already dealing with debt as an everyday way of life. Emergencies can happen and an immediate cash influx becomes necessary. Handled responsibly, a payday loan can be a positive way of obtaining emergency funding quickly. 

The person utilizing a payday loan is most likely ineligible for standard credit or loans, due to a bad credit history. Perhaps a person needs cash but is already maxed out to the limit on their credit card. They suit those who do not wish to approach employers, friends or families for a quick loan. Perhaps they don’t want others knowing about their financial shortcomings.

There are instances where a utility bill is overdue and disconnection is being threatened; using a pay day loan in such circumstances prevents a reconnection charge being applied, which could be more costly than the loan used. In some cases people have already been caught out with high interest rates and charges on credit cards and prefer the more straightforward aspect of pay day loans.

Whilst criticism is made of the high fees attached to payday loans the fact is that it is actually possible to use them and pay nothing. Due to the competitive nature of the industry many companies are now trying to attract new business by offering the first loan to a customer fee free. The only associated charges would be if the customer defaulted on the loan.

It only takes a simple search on the internet to find free offers which enable one to borrow the necessary funds with no associated charges or fees at all. This is the most positive aspect of payday loans. As these types of loans are not meant to be utilized in general, but only in times of desperate need for funds, it is a wise borrower who takes the opportunity to borrow for no cost at all.

One of the positive aspects of payday loans is you know the exact costs of repayment. The terms and fees are upfront, not hidden in the small print somewhere. This suits many borrowers who will know in advance exactly how much they need to repay on pay day.

Thus if a fast payday loan is needed it is possible to use them and only benefit from the positive aspects of payday loans.These are discretion, availability, an instant decision after a very quick application, and the chance to borrow money on occasion at no cost at all.