A survey conducted at the end of 2015 revealed that over 63 percent of Americans do not have enough money to cover an unexpected $500 emergency. When a problem arises people have to rely on their friends and family for assistance or look for other ways to get the money. Many consumers turn to credit cards, but this is not always a convenient option or one that is even possible. Here is why many choose a personal loan instead.
Options are Limited
Not everyone has a credit card. Some retailers and many individual service technicians do not accept credit cards. There may not be enough available balance left to cover the emergency if cards are accepted. If the money is needed to repay a loan to an individual, a credit card may be no use at all. This is especially true if the card owner cannot get a cash advance.
Lack of Discipline
People without financial discipline may refuse to have a credit card. It is very easy to make only the minimum payments. The repayment period could extend for years and the amount repaid becomes much more than what was borrowed. Any missed payments or slow payments damages credit scores and leads to higher interest rates on the card. Loans have a set rate to pay, so the loan is repaid within a pre-specified period of time.
Speed of Service
People that choose companies like Maxlend Loans do so because of the speed of service. Many customers receive their money by the next business day. The process is fast and easy and it is not restricted to people with perfect credit scores.
There are many reasons for people in need to choose a short-term loan. The application process is done online and there is no credit check, so credit scores are not affected. The terms of the loan are very clear and repayment information is provided before the loan is accepted. The borrower gets the money they need within hours and is able to manage their emergency without any additional worries. Anyone that needs cash quickly and thinks they do not have any options should check out this type of loan to see if it is right for them.