Last Updated on Mar 30, 2022 by James W
Although we try to be very cautious of our expenses, we can run into money problems at any time. For example, there may be an emergency, a medical complication, or a heavy essential purchase we need to make. But what happens when such financial demands are way above what our current bank account can comfortably foot?
One way to go is by taking online loans. Unlike regular credit, you can apply and obtain an online loan — also referred to as a payday loan — regardless of your credit score. This means that just about anyone can get an online loan to settle their money issues.
But does that make it your best option? Why not try something else?
1. You’re caught up in a financial emergency
Your payday loan request may be approved within 24 hours, making it the best option if you’re in a financial emergency.
Perhaps you can’t find anyone to raise such an amount for you immediately, and you can’t wait days or weeks for a bank to approve your request – an online loan becomes a good idea. Engineeryourfinances.com is a valuable resource on payday loans and how they work so you might want to get yourself up to speed.
2. You’re confident of paying back before the due date
Notably, payday loans come with very high interest rates. That is what you get for their ease of processing and inclusiveness.
Given the high interest rate and short span, an online loan can be your best solution if you’re absolutely sure of your ability to pay back fully before the due date.
Like most other types of credit, a payday loan attracts late payment fees. Late payment only applies after the end of the loan term, which is usually after 30 days. If you pay on time, you never have to worry about that.
3. Your financial trouble is only temporal
It makes sense to seek an online loan if your financial challenge is only transient. For instance, you’re caught up in a financial mess and can’t access your savings or fixed deposit at that time. But, then, you’re sure that you’ll be out of the problem within some days or weeks, and you can back the loan capital and interest at once.
4. You’re a high-income earner
If you’re a high-income earner and expect to receive your salary or gratuity soon, you can quickly take a payday loan online to sort out whatever money problem you find yourself in.
In short, having a handsome income is one of the requirements for securing an online loan. Your lender isn’t concerned about your creditworthiness; all they want to know is whether you have the resources to pay back as soon as possible.
5. You can’t get such an amount from a friend
Some people are naturally not comfortable asking friends or colleagues for money. If, for whatever reason, it makes you feel embarrassed, you can use an online loan instead to save your pride.
However, this isn’t a standalone reason for you to resort to online loans. Your needs must also be very urgent; otherwise, you can seek a bank loan.
Having said all of that, it’s worth remembering that if you apply for an amount, you’ll get less than that because some charges will be deducted.
Whatever financial decision you make, ensure you’re well-informed and weigh all possible options.