Are Quick Loans Suitable For Emergencies?
There are times in anyone's life where the need for quick emergency cash is of the highest priority. Unfortunately, it is not always possible for many to meet the credit requirements that are normally required for a loan from a lending institution.
The concept of quick loans, or payday loans allows for the lending of smaller amounts of cash for short periods of time, such as from one pay cheque of the borrower to the next payday. In most cases the borrower simply needs to show a source of steady income and that he or she owns a checking account.
Never forget though that payday loans for bad credit can be a minefield, so watch out.
A Fast Application Process
The application for the loan is usually made online and the borrower learns right away whether or not qualification if granted for the loan. Then the money is advanced to the borrower via a direct deposit to the borrower's checking account.
There are lots of reasons for needing cash in a hurry. A vehicle that is required to get to and from work may have broken down, or a child may need to be hospitalized or a family member from another state may be ill. People can't help it if cash emergencies crop up, but now a quick loan or a payday loan can help in situations such as these.
Some forms of these loans allow for higher lending amounts, and for longer repayment arrangements, but the interest rates are still higher than normal simply due to the lower average credit scores of these types of borrowers.
Widely Available
The availability of quick loans is a very good service for people, as they for the most part would be unable to secure a loan that quickly, or at all from a local bank without jumping through hoops to get it. It certainly would take longer to fill out the loan application, and then have to have the application go before the loan committee just to take out the loan.
Due to our economy being what it is, with more layoffs that anytime in our country's history, more companies going broke and more mergers and downsizing than ever before. Many employees have been left in the lurch where many people are having to work two, and sometimes even three part-time jobs, just to make ends meet.
Most people, with a quick or payday loan, can borrow a little money at first, and then get it paid back by the next payday. Then perhaps for the next emergency, they can borrow a little more. This enables may families to get by just a little better when emergencies arise unexpectedly.
Please Note – If you are thinking of turning to a payday loan, please check out this useful BBC Q & A guide - http://www.bbc.co.uk/news/business-16067283
The following video highlights that the dangers of payday loans are not just limited to the UK.