Payday loan is an option which is growing in popularity by leaps and bounds, and only within a small period of time, it has been introduced as a viable option for borrowers who are in need of ready cash for a short term need. The rise of popularity of payday loans in the UK has been phenomenal in the past years, and is constantly growing.
The reason for the growth, popularity and wide acceptance? Payday loans are seen by many as a first choice and last minute resort if they need instant cash for meeting an urgent need. But why is it that millions are getting attracted to payday loans and seeing them as the ideal solution to their problems?
Payday Loans – Why Are They a Good Option for the People?
Payday loans work to offer small advances in cash for a short time period, which lasts for around a couple of weeks or just until the next paycheck is due. This way, if anybody is faced with an urgent expense and is short of cash, and cannot wait for the next salary check, they can apply for this loan and get the amount easily on an urgent basis.
The easy availability of instant cash on loan is what makes payday loans a great choice for many people.
What Is The Payday Loan Amount Usually Used For?
A good way to understand why payday loans are a great option is to know what the loan amount is used for. According to statistics, around 86% of the borrowed amount is used to meet urgent food and utility costs. While 29% use the instant payday loan amount to pay off other loans, around 5% use the amount for house repairs. All in all, the loan amount is utilized to deal with any and all urgent needs and emergency requirements, for which one needs ready cash available in a short span of time.
Benefits That Make Payday Loans the First Choice of Millions of People
The reasons why millions of people find payday loans to be a very good option are,
- They are easy to apply for
- The qualifying requirements of the payday loans are easy and lenient
- Any fees and charges can be discussed with the lender
- The payday loan process is very quick, ensuring access to the required loan amount within the same day, few hours or till the next day
- Payday loans have a very high acceptance rate policy
Payday loans can therefore, be used to cover a shortfall in cash, till the next paycheck. The maximum loan amount you can apply for is subject to the regulations of the state one resides in.
Payday loans are also available online, which means that you don’t have to travel to the lender and wait for your turn to apply for a loan. Also, payday loans do not take bad credit into account, which means that anyone who won’t be able to secure a loan from the bank due to their bad credit history can easily qualify for a payday instant cash loan.
The above mentioned reasons are the basis on which one can assume that payday loans are a good and viable option for millions of people.