Payday Loans Can Help You Beat The Credit Crunch!

What is the Credit Crunch?

Before I begin to describe how payday loans can help us during this credit crunch, let us first see what exactly a credit crunch is.

• It basically means that there is no credit to be had in the market. This in turn means that the traditional lenders like banks, etc., have no money to lend you, as there is no liquidity in the markets, forget about personal loans.
• And even if they have money they will still not lend–why? Because they are looking for 'safe' parties to lend to, common people like you and me are not in that category anymore. Additionally, if you have a bad credit rating, like so many of us in these times, then they will not even consider your personal loan application.

What are the implications of this credit crunch for you?

• The result here is that the commoners, i.e. us, who are already grappling with job cuts and pay cuts now have an additional monster to fight. Your trusted bank, to which you have given regular business for so many years doesn't care what your situation is! Sad, very sad state of affairs indeed!
• The net effect being that, due to your urgent needs you are forced to go for alternative means like over drafting your account, cash advances on credit cards, late fees, etc.
• All these methods are not just expensive and affect your credit ratings, trapping you into a vicious circle but they also magnify and perpetuate the problem of the credit crunch.

Now, on to the brighter side of the 'credit crunch' i.e. the payday loan

• A payday lender acts in exactly the opposite manner to the big institutional lenders. A payday lender would not look at how 'safe' you are, nor do they have anything to do with your credit rating.
• This is essentially because a payday loan is a short term cash advance that needs to be paid with your next paycheck.

How payday loans beat the credit crunch

• So, unlike the banks, a payday lender works independent of the markets. Credit crunch or no credit crunch, the payday lender is always there to fulfill your needs.
• In that sense, when markets are struggling with liquidity shortage, payday loans are a great way to put money in people's (i.e. your) pockets for you to spend on your needs and hence that infuses some liquidity and confidence.

The additional benefits

• Besides all the advantages listed above, payday loans are also incredibly easy and fast to secure. Just an online application and, if you are approved, voila, the cash is in your account, sometimes in less than 2 hours, thanks to direct deposit.
• Typically, no need to fax anything and no credit rating checks. It does seem incredibly good when everything around seems to be dark and dreary. Incredible but trustworthy!

So, remember next time you need some cash urgently, don't waste your time at the bank, running around in circles for nothing. Instead, maybe you should get in touch with a short term loan lender and apply for a payday loan. ... click here to read the rest of the article titled "Payday Loans Can Help You Beat The Credit Crunch!"