Traditional Loans vs. Payday Loans

Money problems are common for people of different ages and backgrounds during the unstable economic times. You never know when you’ll need some extra cash advance to cover unexpected expenses. Emergencies do happen now and then, so it is better to be prepared. If utility bills are increasing, your car has just broken down and your relatives experience some financial troubles, extra cash is of crucial importance in such a case. But where can you get it? Of course, it’s great if you have some savings or can ask your friends for help, but what if not? There are two options: go to the bank and take out a loan or get a pay day advance. Let’s compare those and decide which one works better in case of emergency.

Time matters

When comparing traditional and payday loans you can see that the latter are faster to get. Banks and other financial institutions require a pile of documents, so it takes quite some time to collect those. Besides, you have to prepare for an interview and talk to a credit officer. After that, banks carefully study your application and make a final decision. Sounds like it will take you at least a week, doesn’t it? When it comes to emergency payday loans, you can save hours of your time. You need to register at a website, fill in an application form and wait for available options. Then you should select the most suitable one, provide some personal data and, if you accept the terms, your electronic signature. Your loan can be transferred to your bank account within one business day.

Documents

In contrast to banks that ask you to bring many papers to prove your ability to pay, online lenders usually ask only for a basic document stating that you have a source of income and can meet your obligation in the future. So, payday loans can be easier to obtain if you don’t want to collect all the papers needed for a traditional loan.

Bad debts

A bad credit history may be a significant obstacle for borrowing money from the bank. Financial institutions pay close attention to your credit score and may not accept your application if it is too low. So, if your credit history leaves much to be desired, payday loans might be a better solution. Online agencies have a network of lenders who can give you money even if your credit score is lower than excellent.
In conclusion, it is essential to emphasize that payday loans may be great tools for those who need cash urgently. There is no need to perform burdensome paperwork or wait days for acceptance as online lenders can help you to get cash really quickly.

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