There are several benefits to taking advantage of the payday loans nz offers. In this post, we’re discussing 8 that you have to know.
When disaster strikes but your paycheck is nowhere in sight, turning to a payday advance company can be a good option.
Also known as a cash advance, these businesses provide short-term loans for people who need them in a hurry.
If you’ve never done business with a payday loan lender before, you may not be aware of the many benefits that come with this service.
Here are the Top 8 reasons to choose payday loans NZ:
1. Easy to Apply
Compared to a tradition bank loan, the application process for a payday loan is a breeze.
Instead of having to fill out piles of paperwork, the information you’ll need to provide for a cash advance is minimal.
Most of the time, all a lender requires is that you are 18 or older and that you have a job.
If you’re looking for work and still need a payday loan, some lenders will still lend to you if you have a guarantor or even a phone plan.
Either way, the application process is quick, and can even be completed online.
2. Quick Approval
If you need money fast, payday loans NZ is the way to go because of the quick approval process.
With a traditional bank loan, you will have to wait days or even weeks to know if you are even approved for the loan.
That doesn’t include the time it will take to transfer the money into your account.
With a payday loan, once you’ve filled out your application, many lenders will approve you within a few minutes to a few hours.
And once your application receives the green light, the funds should be transferred right away — depending on the amount you borrow.
The entire process for obtaining a payday loan can be done from your home or workplace, making it convenient in many ways.
Because the process is done online, you don’t have to go out of your way to go to the bank, wait for a loan officer or book several appointments.
Additionally, because you receive cash with a payday loan, you can use the funds for a variety of purposes.
With most traditional bank loans, you are required to use the money for a specific reason — mortgage, car, home repair. But with a payday loan you can spend it on whatever you need it for — medical bills, groceries, car repair, or whatever else has come up.
Payday lenders are also open outside of regular banking hours, which makes them easier to access than a traditional bank.
So if you have an emergency in the middle of the night, reaching out to a cash advance lender may be the perfect solution for you.
When you apply for a payday loan, you can rest assured that your information is safe.
Licensed lenders are required to follow strict laws established by state and federal governments to ensure customers’ personal and banking information stays protected.
Also, these businesses are not allowed to sell or otherwise distribute your information to anyone else.
5. Bad Credit? No Problem
If you’re worried you won’t get approved for a cash advance because of your bad credit, think again.
One of the benefits payday loans NZ offers is lending to people with a less than stellar credit score.
If you have a job, in most cases, you are approved. Most lenders are simply wanting to make sure you have a way to pay back the loan amount you are looking to borrow.
You may also have to provide proof that you have a checking account as well as proof that you are a resident of where you live.
Your credit score may be checked when you apply for a payday loan, but the lender is more concerned with if you will currently be able to pay back the amount you are requesting.
6. Increasing Amounts
If you’ve never applied for a payday loan before, your lender will most likely limit the amount you can borrow.
This will be based on your salary as well as the individual lender’s policies.
However, if you borrow a fixed amount and pay it back on time, and do this on a consistent basis, your lender may choose to increase the amount you are able to borrow over time.
The amount you are able to borrow is determined on the business itself as well as the laws that govern your area.
By limiting the amount you are able to borrow, it helps to prevent the cycle of debt and makes it easier to pay back.
7. Safeguard Your Credit
When you are approved for a payday loan, the period for repayment is usually within a few weeks.
This is different from a traditional loan, where you have years to repay what you have borrowed.
However, the short repayment period with a cash advance can actually work in your favor.
For example, if you are paying on a long-term loan and you lose your job or become ill and default on the payments, your credit will be affected.
With a shorter window for repayment, it is less likely something will occur that will prevent you from repaying your loan.
Additionally, a payday loan can be advantageous over using a credit card in protecting your credit score.
When you use a credit card to pay for goods and services, your spending can get out of control quickly because you may not realize how much you’ve spent.
On the other hand, when you are using cash you’ve received from a payday advance, you know exactly how much you have, and you can budget your money better.
8. Useful for Emergencies
Emergencies happen, and sometimes you don’t have the money you need right away.
By utilizing a payday loan, you can get back on your feet without losing any time.
If your car breaks down and you need money to fix it now, but you don’t get paid for another week, having access to a cash advance is the perfect solution.
As long as you pay back your loan on time, you’ll avoid the fees and penalties and will remain in good standing with your lender.
Payday Loans NZ
If you have further questions about obtaining payday loans NZ, contact us today!