Payday loans are, to put it simply, instant (or near-instant) small loans paid to you by a direct bank transfer or cash payment. With a payday loan, you can get up to $2,000 quickly and without much trouble. The repayment term for a payday loan can vary from 7 days to 30 days.
People, for many reasons, do tend to run out of money before their payday arrives. That’s the primary reason why they need payday loans.
This shortfall of cash can be a result of many things – from poor money management to sudden and unexpected expenses. Some common reasons include:
In short, to meet an urgent requirement of cash, people need and seek payday loans.
Bank loans are usually larger in sum and they can be repaid over a long term – stretching from years to sometimes, decades. Payday loans, on the other hand, are small loans and they need to be repaid over a short term.
In addition, screening tests and other formalities mean that a loan from a bank takes time to get approved. However, payday loans are generally initiated and approved much more quickly, usually within hours.
No. Payday loans and cash advances are much the same, for all practical purposes.
‘Cash advance’ is a rather traditional and colloquial term for what we refer to as ‘payday loans’ today.
It’s much easier to apply and receive a payday loan than a bank loan/credit. There are many ways in which you can apply for a payday loan. These include:
Most would know that applying for a bank loan/credit is a lengthy procedure requiring document checks, credit checks and physical verifications.
However, you only need the following to get a payday loan:
The qualifying criteria for a payday loan can differ from one lender to another. More about it can be read here.