About Payday Loans
Unexpected emergencies arise all too often for most people. Such emergencies often come with unforeseeable expenses. A quick payday loan between pay checks can alleviate the burden of sudden expenses. A payday loan is a small loan of up to $1,000 with a short term period of repayment. It is enough to cover expenses without draining savings accounts or forcing the sale of assets. These loans are much faster and simpler than traditional bank loans and are expressly designed for emergency situations.
No Fuss, No hassle Electronic Applications:
Payday loans are unsecured, so you don’t have to offer up any collateral to cover the loan. Applications are usually completed within an hour. Applications can be found and completed online. The entire process is completely faxless. This no fax process is considerably faster to process and approve than paper methods. An electronic signature is used to verify the loan. Once the application is processed, you are sent a selection of lenders offering different payday loan options. Simply find a lender with an offer that suits your needs. There is no obligation to continue with the process if none of the lenders provided seem suitable. The online application can be canceled immediately.
Credit is not a factor in securing a payday loan. Even applications with bad credit will qualify for the advance. Most payday loan lenders require no credit check for these funds. Payday loan lenders operate on a system of trust that they will be repaid in a timely fashion.
Once the lender has approved the final application, they will place the requested funds in your account directly. The entire process is extremely fast. Most lenders offer same day delivery of funds. You don’t have to worry about waiting for a check or making a run to the bank.
What Determines Eligibility for a Payday Loan?
A payday loan works differently than a standard bank loan. The process is much simpler. Any person who meets the following criteria will most likely be approved.
1. You must be 18 years of age or older.
2. You must be a citizen of the United States.
3. You must present proof of current employment and be employed for at least 90 days prior the application date.
4. You must own a standard checking account that allows automatic debits and credits.
5. You must have and provide a valid email address and phone number.
Lenders will use the employment information provided as the primary determining factor for repayment. This may affect the amount of funds an applicant qualifies for, interest rates and repayment schedule. Lenders want to work with you and be sure you will repay your loan on schedule and with no hassle. While there is a certain stigma that short term lenders are “out to get you”, targeting borrowers who are likely to miss payments and end up owing more in fees and interest, this is usually not the case. Lenders will do everything possible to ensure your payday loan ends up being a positive transaction for everyone involved.
How is a Payday Loan Repaid?
All transactions with a payday loan lender are done directly through your bank account. The money is direct deposited and repayments are automatically deducted. There is no hassling with paper checks or relying on the mail service to get a payment deposited in time. Keep in mind that if a deduction causes an overdraft to the account, the account owner is responsible for all applicable bank fees. It is the responsibility of the borrower to ensure the proper funds are available in their account at the proper time. The lender will inform you of the repayment plan upfront, including all applicable dates. If you don’t believe you can meet the repayment schedule, it is wisest to find a different lender who may able to offer a longer term solution for repayment.
Even with a short term loan it is important to meet all criteria for repayment. Missing a payment date may cause a sharp increase in interest rate percentage and additional fees. Missing payments or defaulting on a payday loan can negatively impact your credit score just like a regular bank loan. If you accept the loan and later are unable to meet the repayment schedule be sure to contact the lender immediately. Many lenders will offer short extensions or a rollover on loan payment if contacted promptly. It’s best not to wait until the last minute. The earlier the lender is contacted, the more likely they will be to grant an extension.
Let a Payday Loan Help You
Payday loans online are there to alleviate financial stress in the worst of times. Used correctly and wisely, they are an excellent financial option open to almost any borrower with income of some kind. When life hands you an unexpected hassle, let a payday loan take some of the burden off.