The ordinary working man or the workforce is sadly discriminated against when it comes to borrowing money from traditional brick and mortar financial institutions, most especially banks. These banks require outrageous amounts of paperwork just for the candidate to be considered for approval. And then, after submitting these papers and documents and several trips to and from the bank, countless phone calls, only to find out that they do not qualify for a loan. Unfortunately, this scenario is often played out all too often across the world. On the other hand, because of the need, more innovative financial help companies have come up with the answer, the payday loan. To know more about this amazing product, continue reading about what makes this kind of loan the go-to solution for those in need of emergency funds.
Fast And Convenient
As opposed to traditional banks policy of multiple and original copies of documents, a payday loan has a very little requirement in terms of documentation. In most cases, they will only need the applicant to be of legal age, meaning that they should be 18 years old and above. The applicant should have a steady cash flow coming into their account on a monthly basis.
This would actually mean that this could work even for those that are freelancers and project-based earners. Another requirement is access to a checking account and also in some cases, even if not under their names. In terms of speed, when the lender receives the documents and after you satisfactorily complied with the requirements, the money can be in your account in as little as an hour. A conservative estimate will put the entire process from start to finish in one day, which is like way better than any bank can match.
No Great Emphasis On Credit Scores
Most payday loans in md will not even require your credit scores to be pulled up and checked. This will actually help you recover and slowly rebuild your credit history. Furthermore, the money you get out of the loan can be used to pay your bills, further reducing the harm on your credit. This aspect of a payday loan is the one single thing that helps the working man get out of a financial bind, making the product a very appealing option among those in need.
Wrapping It Up
Payday loan opponents would argue that payday loans have higher interest rates than banks, but what good is a lower interest rate (and really not by much) if you cannot be approved in the first place right? If banks know better, they can put their money where their mouths are and approve more loans for the ordinary working man. The higher interest rates are nothing compared to the convenience of getting your money when you most need it.