Payday loans are a form of short-term, high-interest borrowing where a lender extends credit depending on your income. They’re unsecured personal loans as they require no collateral. A payday loan provider normally needs you to provide proof of income (pay stubs) to determine how much to lend you. People take payday loans for varying reasons. Outlined below are the top six reasons to apply for a payday loan.

To cater to financial emergencies

Financial emergencies are sudden/ unexpected expenses or bills that need immediate attention. They’re financial needs you haven’t planned for. Since a financial emergency is something you have no time to save for, and you may not have an emergency fund to cater for it, the situation can be quite stressful. Luckily, payday loans, including weekend payday loans, come in handy during such situations. You can apply online, get approved in no time, and have the money in your account in 24 hours.

It’s convenient

Payday loans, primarily the online options, are quite convenient. Most providers allow online applications, implying you can make your application from anywhere, provided you have a stable internet connection. This makes payday loans a fast way to get the funds you need because you don’t have to travel anywhere or wait in long queues. Online payday loans don’t involve any paperwork, which makes it hassle-free. Plus, the application process isn’t complicated.

All you have to do is give some personal details, proof of income, and identity to the lender to decide if you’re an ideal loan candidate. Unlike the traditional bank loan application process, payday loan applications are more straightforward and fast.

If you have bad credit or no credit at all

If you have poor credit or have no credit at all, getting approved for a loan can be difficult. While some lenders may approve you for a loan even with a bad credit score, others have minimum credit score requirements that every lender must meet. Fortunately, payday loans don’t involve credit checks. This makes them an appropriate alternative for those without credit/ poor credit, provided they meet the minimum requirements set by the payday loan provider.

You’re not restricted on how to use the funds

While most loan providers need to be clear on what you need the money for/ how you’ll use it, payday loans don’t have such a requirement. They come with no use restrictions, meaning you can spend the money however you wish, provided you can repay within the agreed timelines. You spend the money on rent, vacation, and more.

Payday loans are easy to qualify for

Payday loans are meant to help borrowers get fast cash relief until their next paycheck. They’re designed to be easy to qualify for. Most payday loan providers require you to be of legal age (at least 18 years) and have a valid identification. You’re also required to provide proof of income and possess an active checking account. These requirements are easy to meet, making payday loans accessible to most borrowers.

Fast approval

Payday loans have fast approval times, making them ideal for those with emergency needs. A decision regarding your application is made within minutes, and if you’re approved, some lenders disburse the funds within minutes and others in 24 hours.

Endnote

Different people turn to payday loans for varying reasons. Familiarize yourself with the top reasons you might have to apply for a payday loan.