Payday Loans Compared To Other Forms of Credit

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<h1>Payday Loans Compared To Other Forms of Credit</h1><strong> Author: <a href='http://www.articleseen.com/profile_Robert L Murphy.aspx'>Robert L Murphy</a></strong><br /><p>Less restrictive requirements than other loans and credit cards Most people that qualify for payday loans have been declined for other types of loans and credit cards. This is due to traditional loans and credit cards having rather rigid credit requirements that many people cannot meet. The payday loan, however, was created in mind with individuals that have poor credit so that they would still have a means of receiving emergency cash when no one else will lend to them. No collateral = no restrictions Collateral is a form of property/asset that secures a loan. An example of this would be a mortgage. The mortgage is the loan, and the house that it is tied to is the collateral. Most loans require collateral, and when this is the case, the purpose for the loan is restricted to its collateral. For example, you cannot obtain an auto loan and use part of the loan to pay your rent. Payday loans, however, do not have a collateral requirement, which means you do not need to own an asset to receive one, nor are you restricted to what you can use the loan for. In fact, most payday loan companies do not even inquire about what you will use the loan for. The Payday Loan Process Can Be Completed Online When applying for most traditional loans, you must almost always appear in person to complete the process. You may be able to begin the application online, but the bank will typically need you to sign paperwork in person. Payday loans and cash advances, however, can be done from start to finish online, with no need to go to a branch. Quick Processing Time One huge advantage of payday loans over other types of credit is the rate at which they are completed. The entire payday loan process can be completed in as little as one hour, while other forms of credit typically take several days to weeks to complete. Short Payoff Time Most forms of credit are designed to keep you in debt for years while the bank collects thousands of dollars in interest from you. The longer you remain in debt, the more stress it puts on your finances. The payoff schedule of a payday loan is one that is usually completed in 2 to 4 weeks at most. This quick payoff method has helped many people alleviate the prolonged financial burden that most loans create, making for an overall stronger financial future.</p><strong>About the Author:</strong><br /><a rel="nofollow" href="http://www.paydayessentials.com">Original Source: See: Benefits of a Payday Loan</a><p> Article Source: <a href='http://www.articleseen.com/Article_Payday-Loans-Compared-To-Other-Forms-of-Credit_27588.aspx'> http://www.articleseen.com/Article_Payday Loans Compared To Other Forms of Credit_27588.aspx</a></p>

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Keywords : payday loans, cash advances,

Category : Finance : Loans