Comparison Between a Quick Payday Loan and Conventional Loan

A quick payday loan for the UK consumers does not need any additional introduction these days, as most of the people in UK are using this service for catering their unforeseen emergency financial crisis. It is a very easy and simple stand-by solution for any kind of small cash shortage at any given time, as you can get an instant payday loan online and once approved you would get the money into your bank account the same day. Short term payday loans have some significant differences compare to any other loan and in some cases it serves way better than a traditional loans from the bank.

Traditional Loan and a Quick Payday Loan Comparison

A traditional loan is provided by conventional banks and requires aplenty documents and a good expiation for obtaining a loan. When you apply for a traditional loan the financial institute would be required to go through your credit history and you have possess a good credit record to be eligible for taking a traditional loan. Sometimes the bank asks for your employment history and might refuse your loan application if you have not been with the same employer more than one year. On top of these you have to appear at the bank or the financial institution and have to go through a bunch of paperwork just to apply for the loan. On the other hand, cash advance payday loans are provided by rather unconventional financial establishment whom are known as the direct lenders. Most of these direct lenders maintains their operations online and the borrowers can get short term payday loans from anywhere with a smart communication device with internet access. The eligibility requirements from the direct lenders for short term payday loans are remarkably flexible compare to a traditional loan. If you are an 18 years old UK resident with a steady income going into your bank account then you are eligible to get short term payday loans. The best feature of a quick payday loan is that most of the time it is provided in small amount and for a short period of time so you would not get spiraled into a long term debt.

Although a payday loan has much higher interest rate compare to a traditional loan, but taking in account the other factors, to get an instant payday loan is much better than a traditional loan in the time of financial emergency.