Usually, you can borrow small loans at extremely high-interest rates to meet some excess expense using payday advance. These are also called as payday loans and are a popular term for companies and agencies helping borrowers and lenders meet and agree on a deal. The borrower is supposed to repay the extra money back to the lender.
A Clear Solution for Your Emergency
An emergency is something that was unplanned and yet happened. For example, a medical expense or damage recovery and so on, there are no hidden fees and complications with opting for payday loans. It is offered against your salaried account and you can repay the advance by the next payday, that is, the next month. Hence, we call it clear. With this option, you can get the money to your account in only a few hours and there is a lot of flexibility as well. These loans are different from bank loans in several ways, and you can benefit from them.
Short and Small Payday Advance Only
These payday loans are for the short-term loan needs and emergencies or an expense not planned earlier. There is a limit on the money you can borrow and it varies from one firm to another. It all depends on the portfolio of lenders they have and are willing to lend. At times the maximum limit can be just $1000 while it can be $10,000 in some cases. Because these loans are for short-term only, the repayment is also short-term. That is, you can go for flexible EMIs for up to 24 or 30 months depending on the agency.
You should always carry out thorough research before opting for an agency. One might be more useful to your purpose that the other. They are small amounts but always instant once approved. It is also easiest to obtain and hassle-free in all aspects.
Loans Only for the Hard Times
These loans are only meant for the rough times you are in your life, and not for a regular thing. Because it comes with a very high-interest rate, you must use it only for those basic expenses that cannot wait. It must not be used for vacations or parties for example. In those cases, you can opt for a small amount for a quick repayment, just like you’d borrow from a friend. The interest is high, so keep it short. That is the goal.
Although, if you have a good credit score, you can look for payday loan agencies that follow a proprietary model for interest rates. Many will ask you just 1.5% per month for a good score and you can borrow money at a good rate compared to banks. At this, you can buy that gadget, that bike or something that needs that extra cash.
Banks Go for Verified Candidates
With banks, the idea is completely different. These are secured and collateral deposits and much more work needed. The paperwork can, at times, need weeks to be done. In the case of banks, the documentation and credit score are the things that matter the most. Whereas, in quick payday loans everything is minimal and often nothing more than a single application, there are credit checks so that only high scores applications are passed. Also, banks give loans to any big amounts that can be paid back for years.
The operation motive of banks and instant loan disbursal agencies are different. One comes handy when there is a crucial need, while the other comes handy when you need a big amount for a long-term venture.