In recent years, the hospitality industry has witnessed a tremendous surge in demand. More and more people are traveling, and notably, it’s not only for leisure but for work purposes too.
That being said, even travelers are not devoid of the financial crisis, every now and then. In fact, according to a study, around 85% of millennials sought short-term personal loans to fulfill their travel plans in the year 2019. Private lenders for loans at Personal Money Network opine that due to reduced formalities, these loans are easier to get for anyone in need. This makes up for the basis of why travelers have been opting for online loans.
Seeking a personal loan that can be repaid in installments is by far the easiest way to seek financial assistance. But the real question is if taking out a payday loan is also equally beneficial? Or even more alarming is the question that if it is, how do travelers apply for such loans?
Well, do not worry, if these questions boggle your mind too. We’ve got the answers for you.
So, keep reading to know more.
What are Payday Loans?
A payday loan is a form of unsecured personal loan. Usually, these loans are meant to cover up minor expenses such as grocery expenses, or emergency medical bills.
As the name suggests, these loans are usually termed from payday to payday. In other words, the borrowers can avail of a maximum tenure of 1 month for their loan.
Salient Features of Payday Loans…
Now that we are through, what’s a payday loan, it is time to understand how these loans can benefit travelers. And for the purpose of this, we would rather like you to know about salient features of payday loans.
Bad Credit Compatible
According to a report, half of Americans have a bad credit score or history. Consequently, they are devoid of accessing the conventional lending options.
To put this into perspective, usually, every lender requires to go through a credit check to evaluate the credibility of a loan seeker. Credit checks involve evaluating the outstanding debts, the number of loans taken, the variety of loans taken, monthly income and expenses, and several other factors.
On the basis of all this information, a credit score is generated. Typically, a credit score above 600 is considered to be the best. Likewise, a credit score below 300 is considered to be bad. As a precautionary measure, conventional lending institutions do not offer a loan to people with bad credit scores.
However, this is not the case with payday loans. Thus, making it a really convenient option for travelers, since they also are very less likely to have a credit history, let alone a credit score.
Easy Availability
When compared with conventional credit options, there are several restraints for borrowers. For instance, a good credit score, as already mentioned, is one of them. Besides, there are time constraints, such as processing time, working hours, and so on. And then there are constraints in terms of formalities to be fulfilled.
All these constraints make the conventional loaning process pretty cumbersome and time-consuming. Of course, when in urgent need of cash these loans are not a very good option.
On the other hand, online payday loans are available 24/7. And there are also minimal formalities to be fulfilled. All that a borrower needs to have is a working bank account and a regular source of income.
For travelers, it is clearly not convenient to visit a bank and fulfill the formalities. Besides, when traveling, it is pretty obvious that the loan would be needed almost immediately. Thus, online loans befit the needs and make up for the shortcomings of conventional loans.
Plenty of Lenders
Unlike seeking a conventional loan, where the lending institutes are limited, online payday lenders are abundantly available.
When applying for a payday loan with a private lender, this could be pretty helpful in getting a budget-friendly loan.
To put it simply, when applying for a loan with multiple lenders it is easier to compare the lending plans. Not every lender offers the same credit limit or tenure. Besides, the rates of interest also vary from lender to lender.
This is precisely where online lending options excel over conventional lending options. Of course, the borrowers cannot expect to apply for the same loan with multiple banks. It would require visiting banks physically, which is conveniently overcome with help of the online application process for these payday loans.
No Long-term Liability
It is noteworthy that conventional personal loans can last for as long as 5 years in tenure. A lengthy tenure, although, makes it easier to repay the loan, at the same time, it also increases the liability.
On the other hand, as already mentioned, payday loans are ultra-short-term personal loans. It means that the borrowers only have to make a one-time repayment.
As a traveler, carrying around a lot of liabilities, and that too in terms of debts could be daunting. Travelers need to manage their finances far more critically than permanent dwellers.
So, probably, taking out a payday loan would ease the burden and let travelers enjoy more of their well-earned financial freedom.
Flexible Lending
As already mentioned, every lender has a different lending plan in place. It depends on the applicants’ credentials that how much of a loan value they are eligible for.
Usually, what private lenders do is offer a credit limit to the borrowers. And the borrowers can take out any amount between that limit.
Having that little flexibility in loan origination can help travelers carefully plan their future endeavors. And thereby, manage their personal finances all the more precisely.
Not only that, with online payday loans, the repayments are also flexible. Borrowers can either repay the loan using online banking or pay via cheque. Or they can also deposit the amount directly into the beneficiary’s account at the end of the tenure.
Where to Apply for Payday Loan?
By now, you as a traveler must have all the valid reasons to take out a payday loan to get out of your emergency cash crunch. But, it could still be overwhelming to apply for the loan, especially, when you know there are plenty of lenders. And all of them claim to be the best.
We suggest that you try accessing a money lending network rather than applying with the individual lenders. A money lending network can give you all the insights in one place, so you won’t have to search for the official website of every lender. Thus, saving you a lot of efforts and time in the process.
It can be concluded that online payday loans are a great alternative to short cash loans for travelers, given that they need small amounts of money only. However, it is still advised to go through the offer document carefully before applying for a loan.
