A small dollar loan is popularly referred to as the payday loan and is certainly one of the most efficient ways of getting fast cash for overcoming a financial emergency. This sort of a loan would be helping you in paying for late bills or unanticipated expenses before you get the salary for the month. It helps you in avoiding penalties that are imposed because of late payments. This sort of a loan is supposed to be paid back with your next paycheck. Usually, you would be in debt for only a few weeks. Payday loans or small dollar loans are known for their immense benefits. Here are some of the major benefits of taking a payday loan.
Incredible Processing Speed
One of the top benefits of small dollar loans is that you could get them easily and very fast. Once you decide that you would be requiring the money, you just need to walk into any payday loan store or you could submit your application online. In many cases, you would get the cash within a couple of hours only. The processing speed is simply amazing and no other types of credit could match this incredibly fast procedure.
Not Much Fuss About Qualifications
You could easily qualify for the payday loans. An exceptional credit rating is not the criterion. Your credit score need not be excellent for availing this sort of loan. Most of the payday loan providers are simply interested to know if you are employed and if you are getting enough salary every month to pay back the loan. They just wish to know that you have the means for paying back the debt. They do not care much for your credit score. Other forms of credit would be relying on a good credit score to approve your loan application. A payday loan lender is essentially a bad credit lender and helps you in a financial emergency.
Credit Rating Protection
The short period of time you get for paying back your loan may look like a drawback but in fact, it is a blessing in disguise. This is a great way of protecting your credit profile. If you are opting for any installment loan, you would be repaying the loan for a year or even two. During the extended period of repayment, a lot of untoward incidents could take place. You could be losing your job or may fall sick and end up missing a few installments. When you default on a loan, your credit score is bound to be impacted adversely. In the case of credit card loan, often you end up spending more than you could afford and that would worsen your credit score.
A small dollar loan is super quick and also a really convenient way of tackling financial crises and emergencies. You could easily get the cash you require badly, within just a couple of hours even with no collateral and with a bad credit. You have the freedom to borrow the amount irrespective of the purpose but you must make sure that you are repaying the amount when you get your salary the following month.