The payday lending industry has many critics, and these critics are often very vocal. But if everything they said about the industry was true, no one would choose to get a payday loan. And since all payday lenders haven’t gone out of business, there are clearly many customers who choose to use their services all the time. Obviously, borrowers see something that they like in this discount loan option, so it’s worth considering some of the specific advantages to these short-term cash loans.

In many cases, cheap payday loans are simply the best option in a bad situation. People who receive unexpected bills that they can’t pay on time might choose to pay late, and incur a fee, or write checks that overdraft their accounts—incurring another fee. Payday loans eliminate the need for either of those bad options, and in many cases, the loan fees are significantly less than the late or overdraft fee a customer would have otherwise had to pay. In a situation like that, it’s no wonder that people choose discount loans instead.

Traditional loans require lengthy credit checks and collateral, and in some cases, borrowers aren’t able to pass these checks or provide security for the loan. But as long as you have a regular paycheck, you can probably get a payday loan.

These loans are also popular because they’re fast. Borrowers don’t have to go through a lengthy application process, and spend days waiting while a bank decides whether you are worth the risk. Companies can make a decision on your loan application instantly³, and deposit funds into your bank account usually overnight¹. If you get your funds via MoneyGram, delivery can be nearly instant.

Reputable online lenders like Discount Advances are also extremely secure. Submitting your personal information in an application is no more of a risk than giving that information to your regular bank.

The Pros and Cons of Payday Loans

How do you know if a payday loan is a good solution for your emergency situation? Since each situation is unique, here is a comparison of the pros and cons of taking out a discount payday loan:

• Discount payday loans are often the only source of money for people with poor credit² or whom banks have denied.
• Because they come in small amounts, discount payday loans are a good stopgap in emergency situations.
• The amount of time it takes to apply, get approved, and receive the money is incredibly short and convenient.
• Payday loans are a discreet source of money for people who are uncomfortable asking their family or friends for help.
• Because they are a payday advance, payday loans are usually based on how much money you earn and how much you can reasonably pay back.
• When payday loans are used responsibly, they can be helpful in emergencies and also help build your credit back.

• Credit checks² are not usually required in order for you to be approved, which is convenient for you but makes you a higher risk for the lender.
• If you can't make full payments, you have the option of extending your loan, but this action generally results in more fees and longer periods of debt.
• Too often, discount payday loans become a habit or an "easy out." Payday loans should never be a financial practice! They should be for emergencies only.
• Sometimes, the amount of the loan is not enough for your emergency, which requires you to either wait through the long approval process with a bank or take out more than one payday loan advance.

Do’s and Don’ts of Getting a Payday Loan

If you’ve never taken out a payday loan, you may not know exactly where to begin when it comes to getting one. The web is full of sites offering discount payday loans, so make sure you do your homework and find the lender that’s right for you. We’ve compiled a list of tips that we hope will help you as you look for your first payday loan.

• Do shop around online to find the best rate available to you.
• Do read the terms and conditions of your loan agreement completely.
• Do decide how much you want to borrow, as this may affect how you can receive your funds.
• Do find out whether your lender offers special introductory rates for new customers.
• Do make sure that the lender you choose is reputable, with a track record of integrity and good customer service.

• Don’t borrow money to pay for things you just can’t afford unless it’s a real emergency.
• Don’t borrow more than you need. If you only need $250, there’s no reason to borrow more just because you can.
• Don’t extend your loan if you don’t have to. This will increase the amount of interest you pay.
• Don’t be afraid to get a loan if that’s your best option. Getting a payday loan is a better option than paying late fees or bouncing a check, both of which can hurt your credit.
• Don’t let APR numbers fool you. These numbers often seem high only because the term of the loan is so short that APR is a poor tool to measure the true interest rate. In most cases, the fees are probably smaller than you think they are.

DiscountAdvances wants all our potential customers to educate themselves regarding the loan process so they can make the best decisions to help improve their financial situation. The more you know, the better your borrowing experience can be.

Are You Eligible for a Cash Advance?

When a consumer is faced with an unexpected financial emergency, their eligibility for managing that crisis comes down to one thing and one thing alone – credit. If you go to a bank or credit union, your credit history will be the deciding factor as to whether or not you are approved for a loan. For this reason, millions of hardworking consumers rely on cash advances for unexpected expenses. Unlike traditional banks and credit unions, cash advance providers do not perform intrusive, time-consuming credit checks² that can potentially prevent a customer from being approved.

But just how accessible are cash advance loans? Even though hundreds of payday loan websites receive thousands of applications every day, just as many people are turned down for loans. There are several common reasons why consumers can be turned down.

• Employment verification. One of the basic requirements for getting a cash advance is that you must be currently employed and also be able to prove that employment status. Usually this requires providing your place of employment, a phone number, and a contact number for your boss or manager. If your employment cannot be verified, you probably won't be approved.
• Banking information. An equally important requirement for getting approved for a cash advance is a valid bank account with monthly deposits of at least $1000. You'll need to list your banking information on your loan application, which the lender must verify before you are approved.
• References. Because payday loan services do not perform credit history checks², they must take alternative routes to build points of reference for their customers. They do this by gathering information on customers from friends, relatives, or coworkers. People do the same thing on resumes because good references help employers learn more about potential employees.

In the end, cash advance loans are usually more accessible for the average consumer than bank loans and credit unions. Since good credit history is required for most bank loans, many consumers with poor credit history struggle to find sources of reliable, affordable credit.