Advantages of Payday Loans

During the recent financial downturn, the credit markets across the country tightened dramatically. This has made it next to impossible for many people to obtain short-term unsecured personal loans. While getting a personal loan through a traditional bank can be challenging, people can still obtain short-term personal financing through payday loans. Payday loan proceeds can then be used to cover auto repairs, pay medical bills, or handle any other expense that you have. There are several advantages that come with payday loans, when compared to traditional loans.

Easy Approval

The first advantage of taking out a payday loan, compared to taking out a personal loan from a bank, is that the approval process is easy and practically guaranteed. When taking out a personal loan form a bank, you will have to meet many different pieces of underwriting criteria, including income verification, credit checks, and background checks. When taking out a payday loan, the underwriting and approval process is much easier. To qualify for a loan, all you will need to have is a recurring paycheck, a valid form of identification, and a bank account that accepts direct deposit and automatic withdrawals.

Quick Application and Approval Process

Another advantage of taking out a payday loan, compared to traditional personal loans provided by banks, is that the application and approval process is far less time consuming. When taking out a personal loan from a bank, you will have to spend hours gathering personal information and filling out a lengthy application. Once the application is filled out, you will then have to wait days or weeks for the bank to make a decision as to whether or not they want to provide you with a loan. When taking out a payday loan, the application can be completed in as little as ten minutes from your own home. Once the application is completed and submitted, you will only have to wait a few minutes before finding out whether or not you are approved. After receiving approval, the loan proceeds will be deposited into your bank account in just a few hours.


Many people also like payday loans because the repayment process is much easier. When taking out a personal loan you will need to write a payment check every month. With a payday loan, you will be informed of when money is due and the money will be taken from your account automatically when each payment is due.

Short-term loans are emergency credit products of relatively small amounts designed for short-term financial issues only and can become an expensive product if used for long-term purposes.

The owner and operator of is not a lender and is not involved into making credit decisions associated with lending or making loan offers. Instead, the website is designedonly for amatching service, which enables the users contact with the lenders and third parties. The website does not charge any fees for its service, nor does it oblige any user to initiate contact with any of the lenders or third parties or accept any loan product or service offered by the lenders. All the data concerning short-term loan products and the industry is presented on the website for information purposes only. does not endorse any particular lender, nor does it represent or is responsible for the actions or inactions of the lenders. does not collect, store or has access to the information regarding the fees and charges associated with the contacting lenders and/or any loan products. Short-term loans are not available in all the states. Not all the lenders in the network can provide the loans up to $1,000. cannot guarantee that the user of the website will be approved by any lender or for any loan product, will be matched with a lender, or if matched, will receive a short-term loan offer on the terms requested in the online form. The lenders may need to perform credit check via one or more credit bureaus, including but not limited to major credit bureaus in order to determine credit reliability and the scopes of credit products to offer. The lenders in the network may need to perform additional verifications, including but not limited to social security number, driver license number, national ID or other identification documents. The terms and scopes of loan products vary from lender to lender and can depend on numerous factors, including but not limited to the state of residence and credit standing of the applicant, as well as the terms determined by each lender individually.

APR Representative
APR (Annual Percentage Rate) is the loan rate calculated for the annual term. Since is not a lender and has no information regarding the terms and other details of short-term loan products offered by lenders individually, cannot provide the exact APR charged for any loan product offered by the lenders. The APRs greatly vary from lender to lender, state to state and depend on numerous factors, including but not limited to the credit standing of an applicant. Additional charges associated with the loan offer, including but not limited to origination fees, late payment, non-payment charges and penalties, as well as non-financial actions, such as late payment reporting and debt collection actions, may be applied by the lenders. These financial and non-financial actions have nothing to do with, and has no information regaining whatsoever actions may be taken by the lenders. All the financial and non-financial charges and actions are to be disclosed in any particular loan agreement in a clear and transparent manner. The APR is calculated as the annual charge and is not a financial charge for a short-term product.

Late Payment Implications
It is highly recommended to contact the lender if late payment is expected or considered possible. In this case, late payment fees and charges may be implied. Federal and state regulations are determined for the cases of late payment and may vary from case to case. All the details concerning the procedures and costs associated with late payment are disclosed in loan agreement and should be reviewed prior to signing any related document.

Non-payment Implications
Financial and non-financial penalties may be implied in cases of non-payment or missed payment. Fees and other financial charges for late payment are to be disclosed in loan agreement. Additional actions related to non-payment, such as renewals,may be implied upon given consent. The terms of renewal are to be disclosed in each loan agreement individually. Additional charges and fees associated with renewal may be applied.

Debt collection practices and other related procedures may be performed. All the actions related to these practices are adjusted to Fair Debt Collection Practices Act regulations and other applicable federal and state laws in order to protect consumers from unfair lending and negative borrowing experience. The majority of lenders do not refer to outside collection agencies and attempt to collect the debt via in-house means.

Non-payment and late payment may have negative impact on the borrowers’ credit standing and downgrade their credit scores, as the lenders may report delinquency to credit bureaus, including but not limited to Equifax, Transunion, and Experian. In this case the results of non-payment and late payment may be recorded and remain in credit reports for the determined amount of time.