Why quick cash loans are the real MVPs of loans
Payday loans are easy to apply for, quick, convenient and can be obtained 100% online. Whether you have good or bad credit payday loans in South Africa can offer you quick and easy access to cash when you need it most.
We’ve all been there - it’s been a regular month, everything has been going relatively smoothly and you’re certain that you’ll stick to your budget till the end.
You think you can make it to month end without a glitch and then suddenly your dog urgently needs to go to the vet. Your car breaks down. The element in your geyser stops working. And all this starts to happen one after the other.
It’s a week or two before payday, you do not have a credit card and these things need to be fixed, resolved or dealt with ASAP - preferably today still, so how do you pay for this? The answer is simple, a quick cash or payday loan.
What are quick cash or payday loans?
It is all in the name - these are short-term loan amounts that are generally not too large, usually only a fraction of the borrowers' income, that are used for annoying and uncomfortable emergencies like the ones mentioned above.
These loans are usually repaid either by the borrowers next payday or spread over a maximum of 3 pay cycles.
It is easy to see why these types of loans can be very handy and convenient - however, let us have a look at some of the other features of quick cash or payday loans, the good and the bad.
What can a payday loan be used for?
A payday loan is a versatile form of credit that you can use for any smaller expense. This includes school fees, car repairs and parts, a shortfall on rent money or even to buy groceries or a gift for a loved one.
The uses are endless but, it is important to never make use of a payday loan to repay debt as this is not only expensive but may make your debt situation worse in the long run.
Top payday loan features
Convenient is an understatement
These loan types are all about convenience. They are so quick and easy to obtain - you can apply for the loan online, have your request approved and the money in your account within an hour. How beautiful is that?
Also, these loans sort themselves out when it comes to repayments, along with your application and approval they set up an automatic repayment with your specified pay cycle.
No need to submit mountains of paperwork
If there is one thing we collectively dislike as a society it’s the need to sometimes fill in and provide a ton of paperwork even for the smallest of things.
When you are dealing with some kind of emergency as we mentioned in the opening statement, the last thing anyone wants to have to do is spend a lot of time filling out endless forms and submitting batches of supporting documents. When you apply for a quick cash loan there is very little paperwork involved.
No security required for payday loans
Since the loan amount you are getting is not too big and lenders operate on a good faith basis and repayments are automated, you are not required to provide any form of security when you apply for a quick cash loan.
Persons with poor credit scores can still apply
Persons with a poor credit history and credit rating are not prevented from applying for a quick cash loan. Any person can successfully apply for a quick cash loan, provided they meet the minimum requirements of being 18 years of age and having a full-time source of employment.
Summary of payday loan benefits
- Can be obtained online
- Easy and quick loan application
- No credit check required
- No security required
- People with poor credit can apply
- Money is received within minutes
- Small amounts of money offered
- You can repay over 3 months
Some disadvantages of payday loans
Higher interest rate & cost
Do not fret, the phrase "If it sounds too good to be true, it probably is" is not entirely true in the case of quick cash loans.
These loans are incredibly convenient and easy to obtain, however, they do come at a higher interest rate and loan cost than traditional personal loans that take longer to pay out and the repayment terms on those loans is usually much longer.
When you look at the interest rate and cost associated with a quick cash loan you need to consider why they cost a bit more - you get your funds within the hour and the application takes a few minutes - you pay for the convenience and service and in an emergency situation it is always worth it.
Can cause dependence on loans
Since payday loans are so easy to apply for and can be received so quickly, people may be tempted to use them continuously. Once using payday loans becomes a habit it may be hard to make it throughout the month without using credit to help.
Since you need to repay your payday loan once your salary enters your account, you'll have less money to make it through the month, hence the common phrase "debt spiral".
To avoid this debts spiral and to avoid heavy charges on short-term loans you must ensure you do not make using payday loans to make ends meet a habit.
A much cheaper option in such a case would be to use an overdraft facility from your bank or to apply for and use a credit card. Credit cards and overdrafts also carry a relatively larger interest however, generally speaking this interest is less than that charged on payday loans.
No person looks forward to unexpected expenses sneaking up on them, however, it’s very comforting to know that whatever the situation and no matter how dire things may seem - there are always options available to help you in your time of need.
A quick cash loan may well be the answer to your problem the next time life happens. Remember to keep your options open and consider more than one financial provider for any loan options you may need.