Aquil Agility News Blog

Payday loans are a convenience. Consumers may spend less than one hour filling out the application to get approved for a payday loan. Subsequent loans take only minutes to get approval because the original application remains on file. A consumer may actually spend more time standing in line than actually getting processed for the loan because so many people are in line waiting to get serviced. In the age of e-commerce, however, consumers can apply for a payday loan online avoiding the trek down to the store.

Whether a consumer applies for payday loans in person or online, these institutions are commonly referred to as “stores.” Think about when you visit a gas station to pick up smokes, snacks, or some other household item. Those stores are commonly called “convenience” stores, in comparison to visiting a major supermarket where you must park in a stadium-sized parking lot, traverse an enormous maze of aisles, then stand in long lines at the check-out counter — a major time and energy waster. Equate a visit to the supermarket as visiting a large financial institution, having to wait to see a loan specialist, fill out long credit applications, then wait for approval from the highest banking official.

First and foremost payday loans are a blessing to those consumers who have no other recourse to get an emergency loan. But secondly, the convenience of payday loans minimizes the stress on consumers. For example, if a consumer is in need of an emergency plane ticket to visit a sick relative, but has not money to spare, they can get approved for a payday loan within minutes and on their way. Applying to a large banking house for the same type loan for the equivalent sum of money would not be so easy. Approval at a bank can take weeks maybe close to a month. By that time their relative’s health may have deteriorated.

The convenience of payday loans goes beyond the immediate, obvious benefits such as saving time. Payday loans avoid the credit bureaus and eliminate the need for the consumer to worry about the implications that a low credit score has on potential loan approval. Also after being approved the consumer does not have to worry about their payment history being reported to a credit bureau.

ADDITIONAL REFERENCES:

1) http://www.paydayloanadvances.co.uk/Regulatory_Bodies.asp

2) http://online.wsj.com/article/SB10001424052702304370304575151214152476000.html