Bank loans and payday loans are two very different means of getting cash, and each has its own benefits. While a bank loan is usually taken to fulfill long-term financial commitments(college tuition fees, buying a house, etc), a payday loan can be used to get instant cash and to cover immediate expenses. Paying your rent, repairing your car, paying your exam fees, shopping for Christmas, buying appliances for your home, and a host of other expenses can be taken care of with the help of an instant payday loan.
A bank loan may take up to a couple of weeks to process, and will involve a lot of paperwork including filling numerous forms, and submitting paperwork in the form of faxes or letters. A payday loan, however, can be applied for online, and does not involve any paperwork at all. They are therefore also known as no-fax payday loans. You can apply for an online payday loan from the comfort of your own home, without enduring long lines or filling up a number of forms.
Banks have quite stringent lending criteria, since they lend very large amount of money, for a long period of time. Payday lenders on the other hand have extremely relaxed lending criteria. A current checking account and a regular source of income are all you need in order to secure a payday loan. Most banks carry out exhaustive credit checks, wherein they analyze your credit history, and give an approval decision based on this analysis. Payday lenders do not conduct such lengthy credit checks, and you stand a very good chance of being approved for a payday loan even if you have a poor credit rating.
A bank will also take a while to process your application, and it may take more than a couple of weeks for you to receive your loan. With a payday loan, your cash will be wired to your bank account within a matter of hours, provided you are approved for the loan.
Finally, bank loans are long-term loans, and therefore their interest rates may be considered to be low. While payday loans do come with relatively higher interest rates, this is because the loans are for an extremely short while(mostly a month) and they are unsecured, which means the lender is taking quite a large risk by providing these loans.
Payday loans are the fastest and most convenient means to get instant cash without the hassles of credit checks and paperwork.
