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Payday Loans Vs Traditional Bank Loans

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The Process of Approval

When you are short of cash and have urgent bills to pay, you start thinking what loan to take. Lots of people think that same day payday loans and conventional bank loans do not differ at all. In fact, they are poles apart, when it comes to terms of payment and papers you have to submit.

Whereas a traditional bank loan can be a real lifesaver when you desperately need money, you have to meet lots of requirements, which not always easy. As we have already said, some people mistakenly think payday loans to be the same. There are, however, some differences between traditional bank loans and payday loans. Let us examine them in more detail.

First and foremost, the process of application is quite different. While in case of payday loans you have to visit your bank and to waste time in lines, payday loan lenders offer online services. The application process is pretty simple: all you have to do is to fill out an application form and send it online. The whole procedure takes no more than several minutes.

As for the process of approval, it is also done online, and you can get your cash on the very same business day, while regular loan applications might be processed for weeks and even longer. Once you have filled out your application form, you will be notified whether your application has been approved. The process of notification lasts from 2 to 24 hours, depending on a payday loan lender.

Want to know the approval rating? - Well, payday loans lenders do not require a good credit history for you to be approved on such a loan. But you have to be at least 18 years old and have an active bank account. As soon as you get approved, the money is deposited to your account in the bank.

So, imagine you have been approved. What is the payment process like? - It is also different and the major difference is that you can pay back online as well. As a rule, the amount of the loan you are given is deducted from your next month's salary. Plus your payday loan interest, of course.

And last but not least, the interest rate. On the one hand, payday loans interest rates are a bit higher than the ones of traditional bank loans. On the other hand, their main advantage is that they are fast, the application process is simple and not time-consuming and you get your cash delivered within several hours. Isn't the game worth the candle?