To many payday loans
A personal loan takes at least a couple of days to be approved and sometimes people don’t have that much time. This is true
for example if cash for medicine is needed by a sudden accident or illness, a personal loan cannot solve this kind of problem but a payday loan can.
Payday loans do not require thorough credit checks or collateral which makes them very attractive for those who have bad credit or do not own a property. In fact, requirements for a payday loan are minimal; you just need to have a bank account and a job. Compared with all the requirements needed for applying for a personal loan, especially at banks, payday loans are a far more accessible financial option.
When you don’t have enough time, nothing compares to payday loans. No bank or lender could ever approve up to $1000 in less than 24 hours, the time needed to fill and approve all the paperwork required for a personal loan takes far more than that.
Payday loan lenders, on the other hand, are used to process loan request within hours. There are few requirements to check and before you know you get the money transferred to your account. A payday loan is usually due by the time your next paycheck arrives. So you don’t have much time for repaying, nor have you, except in certain situations, the possibility to extend the repayment program. This loans are intended for an emergency situation, that being said, if you won’t be able to repay the loan you should use the time you gain to get approved for a more flexible personal loan, repayable in installments. To many payday loans