How Fast Is a Payday Loan?

Where the speed of funding is available, one must admit that it's hard to outmatch a credit card where the funds are available essentially as soon as one swipes the card through a machine. However, the payday loan industry has moved largely online, allowing for loans to be made in minutes with no drive time involved. While this may take a few more minutes than swiping a credit card, the slight delay actually does have some advantages for the consumer.

A credit card is, essentially, a device that's built around the impulse buy. The human brain tends to derive pleasure from the process of acquisition and there is no gratification quite as intense as instant gratification. This psychological feature of the human consciousness has long been known to and used by merchants and lenders to increase their profits. Though most people intend to use their credit cards sensibly, this is not the use for which these devices are designed by the issuers. In fact, those customers who pay off their balances every month are referred to as "deadbeats" by the credit card industry as they fail to generate any financing profit for the company.

The payday loan products offered on the Internet only take a few minutes to secure. They are a more controlled form of spending, which affords the borrower a few minutes to get some perspective on whether they're making an impulse or necessary purchase. As powerful as the prospect of instant gratification may be, it quickly dissipates when one is taken away from the situation and, oftentimes, consumers quickly realize that what they intended to purchase was neither needed nor worth the expense. A payday loan can still be quickly taken out for necessary expenditures, but even filling out the paperwork tends to reinforce the fact that making purchases does have consequences and that it might not be in the best interest of the consumer to follow their urges.

A payday loan is usually used for more necessary expenses, such as bills and fees which have to be paid immediately when the consumer has no funds to cover those expenses. While these loans are fast, usually obtainable in under 15 minutes, they fit a model of controlled spending more than they do a model of frivolous impulse buying. Because they are paid off within weeks, there are few opportunities for the consumer to pretend that the debt was not incurred and, thus, these loans tend to require some responsibility on the borrower's part.

A payday loan can be taken out in a few minutes and deposited directly into one's bank account. The availability of the funds will depend, from that point, upon the bank.