5 Good Reasons to take out Payday Loans
In Australia, payday loans are a part of the small loans market which is becoming more defined just like in Canada, the United States and the United Kingdom. With time, the larger financial organizations and regulatory authorities have started taking more interest in payday loans. A few years back, the small loans market was not highly regulated, but now payday lending is covered by the Uniform Consumer Credit Code (UCCC). However, there are still some lenders who use loopholes to avoid the UCCC. Thus, payday lenders have come under fire due to charging excessively high interest rates and accusations of predatory lending. In Australia, payday lenders charge 24% per $100 borrowed- 20% establishment fee and 4% monthly fee. Despite all these, there are a few good reasons why people take out payday loans. The top five reasons are-
Payday loans are easy to get. Simple terms and quick approval makes this type of financing favourable and easily available to anyone. In the past few years, payday loan has become very popular, particularly because it can be used to deal with any short term requirements. Ahead of approval you do not have to fulfil complicated requirements or go through a difficult application procedure. You can easily apply for a payday loan online and get it approved in just a few hours. The approved cash will get wired directly into your bank account within a few hours to one day. All these conveniences make a payday loan highly suitable for dealing with unplanned financial emergencies.
Easy To Use For Any Purpose
The financial institutions offering payday loans never govern the use of the money. Once you have been approved and the money has been deposited into your bank account, you are free to use the money in any way you want. Most of the time people apply for a payday loans to fill financial gap before the next payday. Some may also prefer to use this loan to pay bills in order to avoid late charges. Paying all your bills on time will help you to maintain a positive credit history.
They Are Affordable
Though the APR of a payday loans is much higher than conventional loans, these loans are actually very affordable because it is designed for short-term use only. You do not have to pay more than $25 for every $100 you borrow. The APR will depend on the lender providing you with the loan. Usually, there are no other hidden costs or charges to worry about when you apply for these loans. Straightforward cost means a payday loans can be very easily used as a personal finance instrument. If you need to manage your personal finance immediately and you can afford to repay back on time, payday loans are the right financial option. Making timely repayment will ensure you stay away from extra costs of missing your payments.
Bad Credit Holders Can Apply
Payday loans can be applied by anyone, regardless of what your current credit rating is. So, no matter how bad your current credit rating is, do not worry. You can still apply and qualify for a payday loan at the same competitive rate. Paying back the loan on time will give you the opportunity to improve your credit rating with time.
Easy To Manage
When applying for a payday loan, you do not need to worry about missing the repayment date or not being able to pay back the borrowed amount altogether. This loan is designed to be very flexible as well as easy to manage. You can easily repay back right after you have received your pay. It is your responsibility to manage your payday loan payment. If you already have a loan out it is recommended that you do not to take additional loans out. Even though obtaining the money is easy, paying back can be very difficult.