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Bad Credit? 4 Practical Reasons For Choosing Online Payday Loans Over Bank Loans

  • September 28, 2020

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bad credit

Struggling with bad credit?

Most of us picture a bank when we hear the word ‘loan’. Well, banks actually were the go-to place for anyone who needed to borrow money but that is a thing of the past now. With the advent of technology and the internet, a lot has changed for the better especially considering loans. There are a lot of reasons why people suggest going for an online loan over a bank loan.

While most reasons are based on advantages offered by new technology, some are actually based on morals. Let’s have a look at some of the most practical reasons on the list.

Banks are slow

When you approach a bank for a loan you have to fill up an application form which is frustratingly lengthy and time-consuming. You have to submit various documents of proof and the whole process including actually transferring the money can sometimes take up to 14 days. This is an incredibly slow process compared to the 24-hour processing speed promised by some companies offering online payday loans.

The online process for payday loans is quite interesting so you can click here to learn more on online payday loans for bad credit and understand how it actually works. This incredible speed at which the process is done has greatly helped a lot of people who need money in an emergency.

Related: Survival After A Pay Cut: How Online Payday Loans For Bad Credit Can Help

The Moral Factor

It is true that business can not be based on morals but that doesn’t mean that morals shouldn’t be considered. A lot of speculation has gone into the activity of demanding mortgage from people who request a loan. Mortgaging is a very ancient way of conducting business and is looked down upon by new loaning agencies especially the ones providing online payday loans.

Unfortunately, banks still indulge in such business tactics and that is another reason why we urge people to simply apply for an online payday loan instead of a bank loan.

Rate of Approval

There is a huge difference when we calculate the rate of approval of a bank loan compared to an online payday loan. The latter has a much better rate of approval due to one very important factor. A majority of people face rejection from bank loans because they either have a low or no credit score.

This is simply not the case when you apply for an online payday loan as the process involves private lenders who don’t necessarily consider your credit score to lend you money. Thus the rate of approval is simply a lot better for such types of loans.

Control your money

You’d be surprised to know that the money that you are loaned by the bank can’t really be spent as and when you like. The money is sent to the place you mentioned in the application form and there isn’t any flexibility provided with it. This is another major reason why we give a higher stature to online payday loans.

They transfer the loaned money to your account and you can use it in any form you like. Any new emergency or monetary requirement can easily be dealt with.

Related: 3 Wealth Tips To Manage Money As A Couple

Loans are made to help us out and make life easier for us. Even though bank loans do the same, online payday loans just do it a lot better. In the time of emergency and need you should be getting the best and most suited form of monetary help.