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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Advance America: 4 Reasons Why Payday Loans Are Easy to Get

Payday loans are a quick way for borrowers to get the money they require without the hassles of a typical conventional loan. People looking for a same-day solution to their financing needs may want to consider a payday loan for the following four reasons:

1. Fast and easy online applications

Although many payday lenders still have brick-and-mortar locations, many loans can also be applied for and approved over a computer or smartphone. This allows customers to apply directly from the comfort of their homes instead of finding a way to go to a physical payday loan store. Applications can be approved within a few minutes, and since a connection to the borrower’s bank account is typically established as part of the process, funds can often be transferred immediately.

2. Poor credit is acceptable

With conventional loans, one of the greatest challenges applicants face is a credit check. If a borrower has run into financial trouble in the past or been the victim of identity theft, then they might not have a great credit score, which will prevent them from qualifying.

This is where payday loans can be an advantage. Although it may be difficult to find payday loans with no credit check, many lenders have less strict requirements and will consider additional factors like a borrower’s income and employment history during the approval process. This gives the applicant a much better chance of getting approved and receiving the funding they need.

3. Flexible debt-to-income requirements

Another challenging aspect of the conventional loan process is that they usually have strict requirements regarding debt-to-income ratios. A debt-to-income (DTI) ratio is a metric that divides the applicant’s total monthly debt by their income. The result is a ratio that serves as an indicator to lenders as to how leveraged the applicant may be.

While some loans (such as mortgages and auto loans) are strict about DTI ratios, just like credit scores, payday lenders are often much more accommodating. They will still ask the applicant for the information needed to calculate their DTI ratio, but loan approval will also take into account other factors beyond just this criteria.

4. Funding can be used for any purpose

When someone applies for a payday loan, there are no stipulations as to what the funds can be used for. This is not the case with some conventional loans. In those situations, if a bank or lender does not agree with the reason for borrowing the money, then the applicant may be denied.

Meanwhile, payday loan applicants may use the funds for anything they need, such as rent or vehicle payments. They may even use the funds to cover basic living expenses until they receive their next paycheck.

The bottom line

There are many reasons why payday loans are so easy to get and can offer immediate funding. Borrowers may apply online and use the funds for any reason they wish. On top of that, payday lenders also are very flexible with poor credit history and high DTI ratios, making them a go-to choice for people who have struggled financially in the past.

Contact Information:

Name: Keyonda Goosby
Email: keyonda.goosby@iquanti.com
Job Title: Consultant

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