What are Salary Advances?
Salary advances is a topic that has been in the headlines for quite some time now. The term salary advances refer to borrowers taking out small amounts of loans for a shorter period often at the end of every month to meet their expenses or just to meet some extra edge. The repayment of these loans is either done in small installments or full amount as a whole with medium-interest rates. As the concept of Salary Advances are coming into the limelight slowly a lot of apps are helping people to bridge the gaps between their monthly expenses and their income. The factor that makes salary advances so desirable is that it has taken over the lengthy paperwork with a hassle-free online loan process. Hence, is easily accessible to all at their desired place and time.
What are Personal Loans?
Personal loans are the money borrowed from any bank, online lender, or credit unions that are to be paid back in a fixed period in installments. The interest rates can vary from 6 percent to that of 36 percent APR.
Salary Advance over a Personal Loan
As we can observe that there is a huge hike in the expenses and it is continuously increasing, it is easily understood that it’s a huge challenge for the people to pull through an entire month with just their salary. In such situations, people usually look for certain ways that could ease their burden off, so they often tend to find themselves borrowing from either their parents or friends despite living a very frugal lifestyle. This is mainly because people are either unaware of the concept of instant personal loans or these concepts terrifies them as they don’t have the just knowledge about it. Getting a Personal Loan Quickly in the beginning stages of your career, without paying high rates of interest, is difficult. However, you can now have a simpler alternative in the form of salary advances
Reasons to choose a Salary advance over a personal loan?
1. Age and Income:
To get your loan sanctioned by your bank several factors need to be taken into consideration like your age and income. If you have just begun your career then there is a high possibility that banks might hesitate to lend you money. Low-income rates are directly proportional to high-interest rates or having to submit more collateral but on the other hand, a salary advance provides loans at a very accurate rate.
2. Credit score a Basic Requirement:
To get a loan from a traditional financial instruction requires a decent credit score. if you possess a high credit score then the interest rate on your loan would be lower than that compared to a loan taken by the person with an average credit score. Most of the people in their early phase of employment cannot take loans because they have no or low credit score and need to build it. Taking credit in any form from any medium increases your credit score and hence taking credit from app-based salary loans and advances will help you increase the credit score in a hassle freeway.
3. More Flexible:
To get a salary advance all you need to do is go through a simple procedure. The repayment of your salary advances is normally deducted from your succeeding payslips. Advance Salary Apps like quick credit offer a dynamic borrowing limit depending on your needs.
4. Rates of Interest:
The rate of interest that is paid on personal loans is way too high but when it comes to salary advances the rate of interest is low moreover if the rate of interest isn’t high then the people have to submit a high level of collateral.
5. Quicker Disbursal:
Getting your loan sanctioned at any financial institution can take a very long time somewhere between weeks to months, and can also be a tedious task with excessive paperwork but salary advances don’t require either much of time or paperwork. During times of emergency then, they are by far the best option. Salary advances are a quicker option since it does not involve any middleman. There are many apps available today which can help you secure a salary advancement.