Month: April 2017

Payday Loans vs. Bank Loans

Banks used to be the only way someone could get a loan and with the extensive process and low approval rate, this made it hard for people in an emergency or tough situation to get access to cash when they need it.

Banks used to be the only way someone could get a loan and with the extensive process and low approval rate, this made it hard for people in an emergency or tough situation to get access to cash when they need it. Pawnshops and check cashing stores eventually began offering small advance payday loans using postdated checks as collateral. The advances of the internet over the years made it possible for lenders to begin offering online advance payday loans as well.

Advance payday loans are quickly becoming the best, easiest and most efficient way for people to get access to fast cash. The online advance is becoming the most popular as customers can apply and receive their money fast, all while sitting in the comfort of their own home using a computer or laptop.

Banks began to realize that the demand for these small loans was growing astronomically and many decided they wanted a piece of the action. While many banks don’t offer any types of unsecured small loans that could compete with the advance payday loans, they did join into partnerships with many advance payday loans lenders to enable these lenders to be able to offer advance payday loans in states where these types of loans are prohibited by law. Banks also began giving out loans to the advance payday lenders.

An online advance can be obtained the fastest, in many cases borrowers can receive their money within one hour after being approved. Banks simply can’t compete with the speed and ease of the advance payday loans process. Banks usually want to run credit checks and need a lot more info than online advance payday loans lenders. To obtain an online advance, most advance payday loans lenders only require that the applicant have a job, a bank account and be willing to authorize an ACH bank account withdrawal agreement in the event they were to default on their loan. In many cases the loans can be obtained without even dealing with a live person. Banks offer online advance but not the same as advance payday loans and often require a much more extensive process to go through. Plus they deny a high number of applicants, who, in turn, usually become the next great customer of an online advance or advance payday loans service.

When using a bank’s loan services the borrower may have to wait for weeks before being approved or denied. Online advance and advance payday loans can often be completed the same day and without any hassle as long as a few employment and other requirements are met. If the applicant for an online advance or advance payday loans has a checking account and has direct deposit setup between their bank and their employer, they can receive their money in as little as one hour after being approved.

It’s really no wonder why thousands of customers are turning away from the traditional loan services of banks and turning instead to the ease and speed of the online advance and advance payday loans.

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GiottoPress by Enrique Chavez