When many people think of direct payday loans, they think of this as a way to consolidate existing debt into a single loan. The truth is that there are many advantages to the use of direct payday loans.
First, the initial interest rate on these loans is much lower than any other credit card company. Many people worry about their credit score being negatively affected by a high credit card rate and never considered a high-interest loan. Although a higher initial rate of interest might be acceptable to many people, they rarely find out until the due date is approaching.
By contrast, with a direct payday loan, you will only be charged a small higher interest rate, and possibly with a zero percent introductory period. You can take out one loan with the zero percent introductory period and have the money applied to your next payday if you so desire.
Second, by not having a credit history to worry about, you can go directly to the lender and inquire about the interest rate they are offering on their loans. This not only gives you peace of mind but also allows you to find out all the information you need for an informed decision.
Third, many lenders offering direct payday loans provide money transfers, which means that they can transfer the money you get back to your bank account directly. This enables you to deposit the money straight into your checking account without having to give the money to anyone else.
In fact, many people do not like to pay a large sum of money to someone else to deposit a check into their account. With the money is coming straight from your paycheck, it is easier to do without someone else’s assistance.
Fourth, the fact that you can take out and pay off your loan with just one credit card makes it easier to repay your debt when it comes due. Some people worry that they might get behind on one of their credit cards and have no place to put the extra cash.
With direct payday loans, you only need one account, and the best part is that if your card gets declined, the money is already in your checking account. This enables you to make the appropriate arrangements, even if the card gets declined, and you are still able to get the money transferred to your account.
Fifth, direct payday loans are offered at very competitive rates. Because these lenders are competing with one another for business, they tend to offer different prices and terms on loans.
This allows borrowers to choose a short term loan that allows them to start making payments at a higher rate, and a long term loan that pays off faster and has lower monthly payments. This ensures that people getting payday loans know exactly what they are getting into before they sign up.
Sixth, you can get a bad credit loan without a good relationship with a local banker. When people want to borrow money, they usually have a trusted local banker to help them navigate the financial maze of banks and lenders.
However, payday loans are not available to everyone, and although many people find it helpful in times of crisis, others find that they are less useful. By taking advantage of the high-interest rates on direct payday loans, you can get the money you need, but you also can benefit from the benefits listed above.