Monday, July 1, 2019

7 Reasons Why Payday Loans Are Ideal for Working Quinquagenarians with Poor Credit

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Finances can become a touchy subject for a quinquagenarian (a person between the ages of 50-59). By the time you've reached this age, in most cases, you're either comfortably wealthy to the point of already being an investor or entrepreneur, or you're like most others who are still in the position of needing to work to pay their bills. 

If you're in the latter group like the vast majority of the population, it can be easy to find yourself encountering financial jams as you get older due to compiling debts and obligations combined with increased forgetfulness. This is why you might want to get a payday loan.

Payday loans are sometimes criticized for their short-term repayment requirements and above average interest rates, but for many people, they can provide a means to fixing their finances in a hurry. 

They're particularly ideal for older citizens who don't want to create additional long-term debt commitments and only need a quick band-aid to turn around a minor financial predicament. Likewise, they can often be the only option for people with poor credit.

With that said, here are seven reasons why payday loans can be ideal for an employed quinquagenarian:

1. You Only Need Proof of Income to get a Payday Loan

Regardless of your age, if you have poor credit, you're going to find it difficult to obtain approval for any kind of financing other than a payday loan. Payday loan providers are able to offer loans without conducting any credit checks because they verify proof of employment before granting approval. 

Furthermore, when you get a payday loan, you'll be initiating a direct deposit agreement with your bank to automatically transfer the loan amount to the lender on a specified date – typically the date of your next paycheck. In this way, lenders are able to issue payday loans while only requiring proof of identity and proof of employment.

2. You Can Be Approved Quickly

Submitting an application for a conventional loan of any kind can leave you waiting for days to receive an approval or denial notice. Payday lenders can approve you on the spot and the money will be transferred to your bank account within 1-2 business days. If you visit a physical office location, you can walk out of the building the same day with your loan in hand.

3. Failure to Repay Generally Does Not Affect Your Credit

One of the biggest concerns when taking out a loan is that it might negatively affect your credit if you're unable to make payments on time. That's certainly a valid concern, especially if you already have a low credit score. 

While you should always make your best effort to make repayments as planned, failure to repay a payday loan usually won't affect your credit report or score in any way. There are cases in which a lender could sell your debt to a collection agency, which could then file a claim with one of the major credit reporting agencies, but in the vast majority of cases, this does not happen. 

However, keep in mind that failure to repay your payday loan will render you ineligible for future payday loans from the same lender or network, which is a significant consequence for someone who can't obtain approval for any other kind of loan.

4. The Terms and Fees Motivate You to Repay it Quickly

One of the dangers in creating any sort of debt is that you could wind up being burdened by repayments and taxed by interest and fees for years to come. While long-term loans will usually give you better interest rates, they'll also have you making repayments for many months. 

On the other hand, payday loans generally charge higher interest and fees for late payments, so you'll have all the incentive you need to get your debt squared away instead of putting it off with minimum repayments.

5. You Don't Even Have to Leave the House to Get the Money

Applying for a payday loan is a process that can be handled fully online. You may need to take a picture of your ID to submit along with your application. All of the information required by loan providers can be submitted on their website or via email. 

Once approved, the money can be transferred directly to your bank within a matter of 1-3 business days.

6. The Loan Amounts Are Doable

Borrowing ability can be just as much of a risk as it is an advantage when over-utilized. Since payday loans are given in modest amounts that range from $100 to $3,000, they keep you from over-extending yourself with a $5,000 to $10,000 personal loan. 

Plus, the recommended repayment and loan amounts are calculated based on your income, so you should have no problem paying them back with a bit of discipline. Furthermore, since the amounts are usually small, you give yourself a fighting chance of getting out of the hole even if you were to fall behind on payments.

7. They're Enough to Cover Most Household Bills

If you're struggling to pay your bills on time and are looking for fast relief, payday loans are an ideal option because they're usually enough to cover essential living expenses like rent, utilities, internet, phone, gas, and food. 

If you have a part-time job that doesn't pay much, you might have a hard time getting approved for a higher amount that will make the loan worthwhile. As such, these loans are usually better for people who are employed full-time.

Try to Avoid an Income-Reducing Debt Cycle

Although all of the above points are definitely valid reasons why quinquagenarians can benefit from payday loans, there's also a downside in that your next upcoming paycheck will be less than usual due to the interest and fees. 

Since most payday lenders will offer to immediately renew the loan, that's often the best option for making sure you still have spending money left on payday. However, it may be better to practice restraint and refrain from renewing the loan repeatedly, as you could get into a cycle that has you losing a significant percentage of your income to interest.

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