Chances are you have been turned down for a loan from a bank or a financial institution. Sadly, for the common man, these cases are regularly becoming the norm. Because of this, lenders have devised a new type of loan called a microloan where they approve a small amount of cash in an unprecedented fully online and super fast way. Why a working man's friend? This is because most of the people that need a fast and convenient loan belong in the middle class. It is a sad fact that most people that belong here would have a below average credit score making them unable to seek help from traditional financial institutions. Below are some qualities of a payday loan that makes them an appealing alternative to traditional bank loans of old.
A Payday Loan Provides Options
A payday loan such as https://webmoneyloans.com/payday-loans/ny requires very little documentation as opposed to a bank which would require you to send in a ton of paperwork and multiple trips to the bank just for you to get approved. An online payday loan would only need to establish your identity and your monthly cash flow in order for them to grant you a loan. They provide you an option if no other way is available for you until your next paycheck. These loans are usually paid within a pay cycle, hence the name.
Super Easy Compliance To The Requirements
Aside from having a very little requirement by way of documentation, payday loans are almost always certainly done online most of the time. They do not require you to be physically present at all. So long as you are of legal age, and usually have access to a checking account, you would be good to go.
A Payday Loan is Fast
No fax machine? No problem, most online payday loan lenders will accept a photograph taken by your smartphone and sent to their email as proper documentation and will process your loan upon receipt, provided they pass their scrutiny. Most applications are done via an online form in their website, doing away with the endless paperwork you need to should you have gone to a bank.
Prevent Damage To Your Credit Rating
Most payday loans only offer a short repayment or a short-term agreement attached to it. This is actually an advantage in order to protect your credit rating. Furthermore, most of these payday loan lenders no longer require a credit check, preventing your credit report score from being pulled up and taking a hit. Consider yourself paying for a long term loan, let us say a two-year loan. Anything can happen within this period and may cause you to default on your loan. Being in default means a hit on your credit rating and the accrual of fines and penalties. The short term of a payday loan means that you take these risks off the table.