Why High Income Earners Use Payday Loans

2016.04.04

 

Online payday loans are often seen as a means to an end, or a quick fix for those who don’t have a lot of savings and need to obtain cash fast. There is also a perception that payday loan, or cash advance, customers have a consistently low income and possess bad spending habits. The reality is that payday loan customers come from many different walks of life, work in a wide range of occupations and all have their own individual financial history.

A payday loan is a smart little loan that is paid back in a few repayments or within a maximum period of 45 days*. Ferratum’s payday loans have a variety of loan terms and have flexible, tailor made payment dates as they coincide with the pay cycle of each customer. While these loans do have a higher interest rate than a regular loan from a bank or lending institution, in most cases the credit requirements are less strict. At Ferratum for example, there are no credit checks used to assess any loan application received. You can also apply for your cash loan online as the whole process is fully automated and takes only minutes to apply.  

Payday loans from Ferratum come in a variety of amounts ranging from $100 to $1000* to suit an assortment of financial needs. Many high income earners find themselves needing some extra cash now for when they need that little bit extra and do not want to apply for a long term financial commitment such as a credit card or a bank loan. These short term cash loans are extremely convenient given that Ferratum is open for business 24 hours a day, 7 days a week, ensuring that customers can apply for and be approved* for a loan whenever it is suitable for them. The customer service department is also open around the clock, so any queries you may have regarding your loan application will be attended to.

For those high income earners who have a bad credit rating, applying for a credit card or bank loan will no doubt prove to be difficult. Many banks and other financial institutions view applicants with a bad credit rating as high risk, especially when the application is for a long term debt. Contrary to popular belief, a lot of mid to high income earners can have a bad credit rating.

Investments can sometimes prove to be difficult to manage and when payments are consistently missed, the investor’s credit rating will be affected. Many mid to high income earners are still feeling the effects of the most recent global financial crisis and have had to drastically change their investment portfolios and look for other financial lending options. When people have a higher income, their outgoing expenses are likely to also be high. A large income gives you an opportunity to buy bigger houses, more expensive cars and obtain approval for a lot of financial lending products such as multiple credit cards. If you have all of these possessions, there are more repayments and sometimes these can be hard to manage at the same time.

A payday loan can be useful as a short term financial solution for those high income earners who have maxed out their borrowing power from banks and other financial institutions. As these loans are flexible and over such a short period of time, they can be useful for those unexpected bills or if there is an important occasion coming up that you would like extra cash for.

Before you consider applying for a loan of any kind, such as a payday loan or cash advance, it is important for you to be aware of all the financial services and options available to you. It is advisable that you explore all of these options so that you can pick the right solution for your specific financial needs. A payday loan is not a solution for you to pay off other debts or a way to get you out of a financial crisis. They are intended to be used as extra cash options for those who have unexpected expenses or would like to add to their cash flow for a personal reason.

*Loan approval is subject to Ferratum’s lending criteria at the time of application.

Apply Now for Your Cash Loan!