While taking out a payday loan has been much maligned, certain reasons remain which could provide a solution to an immediate need. Payday loans become truly bad for personal financial health if it becomes a habit. Surely, payday loans can be convenient and an easy way to get quick cash, but it should only be used as a last resort. Below is a list of 10 of the most beneficial reasons to consider a payday loan and why applying on-line may be best:
1. Home foreclosure: The most important investment in you and your family’s well-being is a place to call home. If you are already behind on payments and the bank is threatening to repossess, nothing could justify a payday loan more than saving your home.
2. If you don’t have enough money to pay a bill before it is due. Late payments on bills affect your credit score for years, but a payday loan will have a much smaller, short-term impact. Keeping your credit in good standing ensures lower interest rates in the future when you apply for a mortgage or auto-loan.
3. Utility bills. Most utility companies don’t report late payments of under sixty days to the credit bureaus, instead they threaten to shut off service. Often you can call and make payment arrangements with the company, but if your level of debt gets too high, they may demand payment. In this case, a payday loan may be right for you to prevent the lights from going out in your home.
4. Medical emergencies. Some doctors or hospitals will treat people without insurance or money to pay for treatment, however, you can save embarrassment by paying the bill.
5. Other emergencies.
6. Getting a payday loan on-line is especially convenient to people who live in the country, far from a brick-and-mortar establishment.
7. If you know you will need money ahead of time and a bank denies your loan request, you can also try websites like Prosper to get a loan from your on-line peers. Rates can be very competitive and are offered to all credit levels.
8. Rising gas prices. Applying for a payday loan on-line saves gas and potentially a lot of money.
9. If you know for sure that you will be able to pay-off the payday loan in time.
10. It is better to get a conventional loan either through on-line peer-to-peer lending sites or though a traditional bank. Please use payday loans as a last resort.