The payday loan has slowly turned into a most significant financial tool for a considerable number of consumers. Most consumers are now seriously looking at their options for acquiring credit without the usual lengthy and stringent processing of applications. Amid the lingering problems in major economies, it is but natural for consumers to explore their options and go for such financial tools that they believe can help them survive the challenges of the times.
Among the long list of safety nets that consumers can opt for, payday loans are turning out to be the top choice. So, how can we explain this strong vote of confidence by consumers on a subprime lending service that is being pilloried by some sectors as predatory? Payday lending companies offer funds of up to as much as £1500 with a regular term of 30 days without the need for the prospective borrower to go through the usual credit check the is adopted for regular loans. This translates to higher approval rate and faster turnaround. In fact, there are companies that can process and release funds within 24 hours from the filing of loan applications.
Payday Loans Perform a Specific Purpose
Payday loans, also known as cash advances or payroll advance, perform a specific function or purpose. This financial tool serves as bridge financing that consumers can harness to resolve temporary or short term cash shortfall. It is not meant to solve recurring or long term financial obligations. This means that such subprime lending service is not designed to be used as substitute or alternative to regular loans. Thus, it is not appropriate to do an apple-to-apple comparison between payday loans and regular loans.
The requirements for such type of loan are pretty simple and the processing normally takes about 24 hours. In fact, leading payday lending companies are now offering online services and can process and implement the transfer of funds on the same day that the application is submitted to them.
Harnessing the Full Potential of Payday Loans
When used for its intended purpose, this type of short term loan can be a powerful financial tool for consumers. You don't even have to personally visit the lending stores or offices of payday lending companies to file your application. Leading and reputable lending companies are now offering what is now referred to as "faxless" payday loans, where consumers are allowed to file their application online. This is a zero-contact type of loan transaction that offers unmatched convenience to potential borrowers.
The process is pretty simple. In times of urgent need for cash, you are just required to accomplish an online application form and provide basic information that will support your identity, eligibility to enter into a binding agreement, source of income and your citizenship. Your application is then acted upon by the lending company and funds are released through automatic fund transfer. The entire process would normally take about 12 to 24 hours. The cost of the loan would largely depend on the amount that you are going to borrow as well as your capacity to pay.