Should You Apply for a Quick Pay Day Loan? Five Reasons to Say Yes!

Even the most budget-conscious consumer may occasionally find himself in an unexpected financial crunch. An unanticipated car breakdown, a child’s doctor visit or sudden spike in utility bills can catch anyone off-guard and temporarily strain a family’s finances. Fortunately, a consumer has several problem-solving options in a financial emergency. A quick pay day loan, sometimes called a cash advance, is one of them.

Following are five reasons a consumer may want to opt for a short-term cash loan instead of any other option.

1. The cash is available almost instantly.

Compared to traditional bank installment loans that typically involve a long and complicated application process, you can usually apply for a quick pay day loan in a few minutes and the funds will become available overnight — oftentimes, even the same day.

During a financial emergency, time is of the essence.

You may need your car to get to work, your child may need medicine right away in order to feel better, or your utility company may threaten to disconnect your service. In these sorts of emergencies, a fast and easy loan can get you out of a jam and rescue your family from a bad situation quickly.

2. You will avoid a long-term financial obligation.

A quick or same-day payday loan is a one-time arrangement with a no-nonsense loan company. You simply borrow the money and pay it back in a short amount of time, usually a week or two later, along with the requisite fees and interest. That’s it: One loan, one payment. No headaches.

When the loan is repaid, you needn’t worry about ongoing, revolving balances that are all too tempting to acquire with a credit card.

3. Your next paycheck will cover the amount of the loan.

A payday advance works best for someone who earns an adequate, reliable paycheck and who expects to be able to easily repay the loan.

If you’re this type of consumer and a short-term loan is all you need to pay an unexpected bill, a no-hassle payday advance means that a minor financial emergency doesn’t have to cause your family any unnecessary hardship while you wait for your next paycheck.

4. It is quick and easy to qualify.

Unlike a bank loan or credit card, you can be issued a payday loan even with a low credit score. A credit rating can be particularly troublesome for a person who may have let a bill or two go unpaid in the past, and in fact even small unpaid debts can keep you from qualifying for a traditional bank loan or a credit card.

In contrast, many cash advance lenders simply require proof of employment, an ID that verifies your citizenship and age, and a bank account if you will have the loan direct-deposited. Check with your lender for additional requirements, but you may find there aren’t any.

5. Your credit score may benefit.

As long as you repay your quick pay day loan by its due date, you need not worry that your temporary financial emergency will prevent you from getting larger loans in the future. In fact, borrowing a short-term loan and repaying it in full, in a timely manner, can boost your credit report and show future, more traditional lenders like banks that you are a responsible borrower.

It’s important to have repaid loans on your credit report, as a good payment history will result in more desirable interest rates should you later decide to get a traditional bank loan for a larger purchase. It’s ironic but true: Responsibly borrowing money now may save you money in the future.

So, should you apply for a quick pay day loan? If you need cash immediately and will be able to repay it in a timely manner, it is easy to see why this sort of loan might be your best option when a financial emergency arises.