Payday loan companies and lenders provide such an efficient and convenient option that this application is becoming very common these days. Though the image of short-term payday loan industry is not good due to the bad reviews of media yet it is one of the best alternatives for financial emergencies.
The simple and fast online applications actually make these instant payday loans so tempting and alluring. You don’t need to visit anywhere to apply for a cash advance loan but you can do it in your pajamas get the money directly banked into the bank account within 24 hour provided if it is a business day.
Those who are looking for ways to lower the debt and cutting back the expenses, these direct lending companies can offer an easy solution for you. Most people look for quick fixes instead of eliminating the issue of having bad credit. Prior to using any more third party money, it is important to understand the credit utilization rates.
The rate of credit utilization is actually based on the calculated ratio between the amount of you owe lenders and the amount of money you could owe in the future. Gather all your previous credit card statements and then place them on a flat surface such as the table. Calculate the total amount of the still remaining balances for all the credit card statements. The answer will be your aggregate credit card debt. The next step is to go through your statements then find out the total of the credit limits. In this way you will come to know that if you charged each and every penny on these credit cards, you could get an idea about your debt. Lastly divide the aggregate debt by the potential debt in order to know your credit utilization ratio. If the score is high, then your credit score will be in worst shape. Take this ratio seriously as this is used almost as one-third of your credit score and you need this when you apply for instant payday loans.
The first priority must be paying off a debt then think about sparing some for any sudden or upcoming emergency expense. Why do we need to save and pay debt at the same time? This is a good question. As everyone wants to pay off quickly so they place it all on a credit card. It is actually a good idea, but in future financial emergencies can’t be avoided. It is important to save otherwise the future unexpected expense will appear again and your hard work will go in vain. In this regard the best solution is to use credit cards or apply for small loans with reliable payday loan companies on line. These options can be very helpful for those who have not created enough savings to cover the sudden and extra costs. Remember the trick only use what you have to use. Only use what you have saved then juggle from categories of non-fixed budget (i.e. fuels, groceries, and clothing). You can borrow the least amount of third party cash in this way.
You are lucky if you can access to credit or you are sure that you will be approved for a short-term loan by a direct lender. There are many such people who are experiencing the same situation but unluckily they do not qualify for this either.
Direct Payday Loans
Sometimes you are caught in a situation where you need cash urgently and you can’t wait until your next pay check. This is when payday loans come handy. When you apply for payday loans directly from a lender then its benefits are more as compared to approaching an introducer or a loan broker.
Obtaining an immediate decision on your application
When it comes to online offer then most lenders give an instant decision on the payday loan application as they only match the application with their lending criteria instead of matching it with third party or some other lender. On the other hand, your details are passed on to third party or panel of lenders if you put your application with introducer or a broker. More info on instant payday loans can be obtained online too. This is time consuming because you will be waiting for decision of each lender. Sometimes it can take few days so if you need cash instantly then this is not an ideal way.
Your application information is kept secret
When payday loan brokers or introducers pass your info of application to a panel of lenders then the worst thing that happens is that it is sent to some other brokers too. The purpose of this is to match the application with a selection of lenders and then a suitable lender is recommended to you. This is quite bothersome for your loan application as it would gain exposure to number of lenders. On the other hand, multiple payday loan applications as well as enquiries can also reduce the chance of obtaining an approval. All the parties that are involved may carry out credit searches which actually mean number of enquiries on your credit file. As brokers and introducers pass on the personal information of the applicants to third parties who are stranger for the borrower at the time and whom you would allow to handle the information. This can give rise to serious security risk.
The end could be really unwanted as they may sell your application details to the third parties not responsible for safeguarding your confidential information. Also you will start receiving huge number of text messages, spasm emails as well as phone calls to tell you about their latest offers of unsolicited loan products. Stay away from brokers or introducers that charge up-front service fee whether they approve or cancel the payday loan application. These are to be stayed away from at all cost. There are some brokers who collect a fee illegally from payday loan applicants and the worst part is that they never secure any loan to them. Such situation can be frustrating and disappointing. As payday loans lenders do not charge any fee for application: so it is not a good idea to waste your money by paying someone else to do this same task.
You always understand the payday loan product that you applied for
Payday loans lenders always provide complete information about the loan products that they offer. You can easily find it on their website. For any clarification, contact their customer services representative. Usually borrowers are made aware about the process of loan application from beginning to funding. For getting this information you can check the “How it works” or “FAQs” sections of the website. Moreover, you would know everything about loan interest charges, repayment conditions and APR rate. There is no doubt that applying for payday loans directly from the lenders is the best option.