Payday loans are basically for anyone and everyone that have a need for cash and meet certain minimal qualifications. There is a basic, underlying theory that if you are prepared you would never have a need for a payday loan, but that is a mytth. Financial issues can arise anytime and can happen to anyone. So, who needs payday loans and why?
You never know when you are going to have unforeseen medical bills or need car repairs that were not anticipated. In some cases, such as a wreck, these things can happen at the same time. Even if you are fully prepared with a backup savings account, there might not be enough to cover everything. Also, there is no rule that says an emergency has to wait until your finances recover from the previous emergency. What if you had to use up your entire emergency fund and then have another emergency? What if you do not use credit cards or do not qualify for them? What if you could get a bank loan, but it would take too long? These are all potential reasons why someone would not be sufficiently prepared for an emergency through no fault of their own. Of course, it could just be that you did not prepare, and now there is an emergency. We all make mistakes, and hind sight is 20/20. It is time to move forward and take care of business. These are all reasons why a payday loan may be needed.
It is very possible that for one of these reasons or another there is no emergency stash of cash and cash is needed quickly. If you have bad credit, your options are limited. It may even seem that there are no options. However, a payday advance is an option even if you have bad credit. Payday advances for those who have bad credit are available. Most often, there is not even a credit report pulled. Borrowers simply have to prove they are employed and are of legal age, and they can get their cash quickly and easily. Some lenders do require proof of a bank account and information related to it for depositing funds and drafting repayment.
The most common reason anyone needs a payday advance is a need for fast cash. Even if you have other options available, they may not be options that will pay out fast enough for the specific situation. When you go to a storefront for a payday advance it is possible to walk out with cash in hand in just a few hours. Even when applying online, funds could hit your bank account in as little as 24 hours. Therefore, sometimes a payday advance is the best option when cash is needed fast.
The fact is, payday loans get a bad reputation. However, they can be a useful financial tool for anyone at any time. While they work well for those with bad credit, no access to credit cards, and a lack of emergency funds, they can be a valuable tool for anyone in the face of unforeseen financial issues.