Is a Payday Loan the Fastest Way to Borrow?

There are many different options for borrowing money but if you need money in a hurry then you may be looking around for a loan that is fast to arrange. You may feel that a payday loan is the only option for you as they are well known for being fast. However, there may be other options that are also pretty speedy too. It is worth looking into the different options that you have so that you will be able to choose the option that will suit your needs the most.

Arranging a new loan

If you have to arrange a loan it can often be a very long process. You could find that you will need to go through lots of paperwork and send in lots of documents and then wait a long time to find out if the loan has been approved. Then you might have to wait a while before you get the money. This can be extremely tedious and stressful. If you get turned down, then you will have to go through the whole process all over again. You will also find that this loan refusal will be noted on your credit record and will count against you when you try to apply for another loan.

Using an existing loan

It might be that you have an existing loan that you can use which will be a lot quicker. This could be a credit or charge card or an overdraft. If you have a card and you still have credit on it then you may be able to use this to get the money that you need. It might be possible for you to draw cash on it, although this will be expensive as there are extra charges associated with this. With an overdraft you will be able to draw money on your checking account as long as you have not maxed it out. If you have an authorised overdraft then this could be at a reasonable price, but if you do not then you could be charged more and this could be very expensive. Both of these loans will not need to be repaid quickly. Although this could seem like a good thing, as you will not have the stress of finding the money, it means that you will be charged a lot of interest and they could work out to be very expensive. It can be easy to leave them and not repay them and then you will end up having to pay interest for a long time.

Using a payday loan

A payday loan may feel like a similar option to the first as you have to arrange a new loan. However, it is very different because you will not take very long. Most payday loans are extremely quickly to arrange, although you may want to check with the lender to be completely sure. You will find that not only is it very easy and therefore quick to apply, that you will find out quickly whether you have been approved for the loan. Many payday lenders will be able to get you the money within a few hours of you first applying. This means if you have an emergency and need money really quickly, you will be able to get it with this sort of loan. This is an extremely fast turn around compared with many other types of loans. There are some payday lenders that will also work all hours. This means that even if you need the money overnight or at the evenings, there will be someone available to help you and to organise the loan for you. This means that they really can help you out in an emergency.

So, in some circumstances you might be able to get a loan ore quickly than a payday loan. This could be if you already have an overdraft or credit card. However, if you need to arrange a loan form scratch you will usually find that it will be much quicker to organise a payday loan than any other type of loan. The speed is partly due to how easy it is to apply, to the fact that they have staff there all of the time and that they just try hard to make sure you get your money as quickly as possible. They do not do a credit check either which can also help to speed up the process.

It is worth making sure that you also look at other features of the loan as well as the speed. It is so easy, when you need money in an emergency, to just pick the fastest lender and not think about anything else. It is important though to make sure that you are getting good value for money. Make sure that you compare the price, service and reputation of the lender so that you are sure that they will suit your needs.

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