What are the Unquestionable Benefits of Payday Advance Loans

Payday advance loans have been villified, criticized and even banned in many states, yet they have certain unquestionable benefits when used occasionally. Critics of pay day loans see only irresponsible borrowers who should be rescued from the evil lenders, failing to realize that there will always be irresponsible borrowers who will also dig themselves into a financial mess. Better the pay day loan lender than the illegal loan shark or some of the sub prime credit card issuers.

A large number of people who payday loans from time to time see them as a practical way of obtaining a short term loan and there are certainly some unquestionable benefits to doing so. When the borrowers understand the necessity of paying the loan back on time then payday loans can be used without creating problems.

There are many working people who choose not to have credit cards for any number of reasons, but manage fine with just an active checking account. On occasion funds are needed in an emergency. Perhaps payday is another fortnight away but the car needs a quick repair paying for in order to travel to the workplace.

At such a time a payday advance loan is quick to obtain and the borrower knows exactly when he will pay it back, which is when he obtains his next pay check. The bank probably wouldn’t have been interested in such a small loan and may have encouraged a larger one, which was neither needed nor wanted. The emergency car repair is paid off and the borrower is finished with the loan.

Then there are those who have a bad credit history and know that they have no other option for a speedy loan. Those who know that they won’t be accepted for a bank loan or a credit card because of their low credit score have the benefit of being able to use a payday advance loan, as the process does not involve a credit check. The lender is concerned with the borrower’s ability to repay the advance when his pay check comes through, not with previous financial errors.

Sometimes someone needs cash but does not want to leave a paper trail through the banks. They know that a payday advance loan transaction will leave no record if they simply deposit a post-dated check in person when they make the application, and take it back when they pay the loan off in cash. There are no questions asked on such a transaction. This is convenient for those undergoing a nasty divorce where they don’t want lawyers being privy to every financial transaction they make.

A payday advance loan is also of benefit to those who for whatever reason do not want to borrow funds from another available source, such as family, friends or an employer. Some people find this embarrassing and would rather make their own arrangements. Some employees may be waiting for a promotion and not want to give any reason to jeopardize this by approaching even the most understanding employer at this time.

Other unquestionable benefits to this type of borrowing are the ease and speed of the transaction, which can be done in person at a store, over the telephone, or online. The only paperwork needed is proof of a valid income, usually a regular wage but also social security payments; an active checking account; proof of address; and a personal reference.

Those who need a quick cash advance, which does not involve banks or credit card issuers taking their time considering advancing either a loan or credit, have an ideal solution here. The one off charge on a payday loan may work out cheaper than the costs associated with a long term bank loan or overdraft, or the interest on a credit card that is not used wisely. Those who know what they are doing when they take a payday loan, and pay it back in full when agreed, do reap the benefits of this quick and easy access to a cash advance.