There are many benefits to payday loans when it comes to improving your overall credit rating. Since many lenders do not require a credit check then you can easily borrow a small amount, say �100 or �200, and pay it back on your next payday.
Borrowers who have previously successfully borrowed and paid back money on time will see an improvement to their credit file and they can usually borrow money again from the same lender at a better rate or a larger amount should they wish to do so.
Almost anyone can use this method to improve their credit rating since often a credit search is not even carried out when applying for a payday loan. You usually just need to be over 18 years old and have some form of regular income. Basically if you can show that you can realistically pay the loan back soon then you should be able to get a payday loan.
Benefits of Getting a Payday Loan
1. It is quick and easy to apply for a payday loan. There is not a long waiting period or large form to fill in.
2. Applications are usually completed online and can be done in the comfort of your own home.
3. Faxless payday loans are becoming more popular, this means you may not have to photocopy personal documents and find a fax machine to send them off.
4. Some payday loan companies allow you to repay the loan by using a credit or debit card, this means you wouldn�t necessarily have to spend time writing cheques and posting them, or visiting a high street store.
5. Repeat customers can often borrow money again at a better rate or for a larger amount.
6. Existing customers with a poor credit rating would not normally be able to borrow money at all from high street sources such as banks or building societies but they are able to borrow larger and larger amounts as time goes on.
7. Many payday loan companies will be flexible with the repayments and are used to changes in circumstances and emergencies. This means they are often able to defer your repayment to the following payday should you find it hard to repay on time.
8. Quite often a payday lender will act as a broker for several actual lenders. This means you can get the best deal available to you given your circumstances without having to shop around yourself.
9. Since payday lenders offer very short term loans there is no long cooling-off period before you can get the money. In some cases it can be in your account the same day.
As you can see there are many benefits to payday loans. They are great if you are looking to borrow a small amount of money and improve your credit rating at the same time. They are ideal for one off emergencies such as paying unexpected health bills, repair bills or making a one-off purchase.
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