Top Seven Reasons to Apply for a Cash Advance or Payday Loan
Cash advance loans, or payday loans, are an increasingly popular way to finance short-term needs. Their convenience and easy availability have made these types of personal loans the most common ways to bridge over the temporary cash shortfalls that occasionally occur in life.
A survey of a wide range of borrowers reveals these top seven reasons why people apply for cash advance loans:
- Vehicle repairs
- Home repairs
- Electronics purchases
- School supplies and tuition
- Clothing, especially that required for work or school
- Medication or other short-term healthcare needs
- Food and drinks, especially for guests
Since vehicles, particularly cars, are a necessity for transportation in many communities, it stands to reason that purchasing replacement parts and paying for labor costs for auto repairs are a primary reason why people seek cash advance loans. In many cases, a worker needs transportation in order to travel to and from work; therefore, these loans offer a quick way for the borrower to get back on the road, and back to work earning money.
Home repairs present the second-most-common need for cash advance loans. Many homes and apartments, especially older housing units, suffer from an occasional water leak or security issue. Perhaps a leak in the roof is allowing water to enter and damage property. Or, a door or window may lack appropriate security, requiring immediate repair. In all such cases the speed and flexibility of a quick loan can help preserve and protect the family home.
Whether considered as a luxury or as a necessity, today’s modern electronics such as cellular telephones, computers and other electronic equipment are an increasingly common reason why people seek personal loans. Because of the expense of such electronics, when a piece of equipment is suddenly lost or damaged the need to purchase a replacement may not be accomplished easily without a cash advance or similar loan.
School supplies and tuition
When school begins, it’s important that students be armed with the necessary tools and supplies, including money for tuition. Many borrowers seek a personal loan to cover the short-term needs of students returning to school, or to cover school trips and special costs.
Clothing, especially that required for work or school
Likewise, payday loans are quite popular for last-minute fashion needs of students. Of course, schools may require uniforms or other clothing to participate in sports or special events. And, workers too often discover that they must purchase additional clothing or footwear for their job, which may be costly. In either case, cash advances offer a way to move forward and assure that the person is properly clothed.
Medication or other short-term healthcare needs
All too often, people need a cash advance loan in order to meet short-term needs for healthcare or medication. For example, if a borrower or a family member runs short of prescription medication between ordinary refill schedules, he or she may consider a personal loan to purchase medication during that interim period.
Food and drink, especially for guests
Also among the top reasons for seeking cash advance loans are short-term needs for food and drink, especially for guests. Although food may seem an obvious need, most often the loan is to be used to purchase food and drink for guests, perhaps in the form of wedding or event supplies, or even as gifts of food, wine or other forms of alcohol for family and friends to celebrate birthdays, holidays and other important events.
In summary, after reviewing this list of the top seven reasons why people apply for cash advance loans, it can be said that such loans, also called payday loans or personal loans, offer a valuable tool to meet urgent short-term cash needs.