What You Need To Know About Payday Loans
Do you need money to pay utility bills by the end of the month or to be able to afford food and groceries until your next paycheck comes? Have you looked into getting a loan? If you have a job but are struggling to make ends meet, you may want to consider a payday loan.
A payday loan is a high-interest, low-balance, short-term loan. Also sometimes called a cash advance, short payday loan, check advance loan, post-dated check loan, or deferred deposit loan, it is made for those who need some quick cash before they get paid at work.
Who can get a payday loan?
Generally, payday lenders ask the following requirements from potential borrowers:
- You have to be at least 18 years old.
- You have to possess an active checking account.
- You have to be able to present valid identification, such as a driver’s license or passport
- You will also need to provide proof of income, such as your payslips.
How do you apply for a payday loan?
Compared to other types of loans, such as a car loan and a housing loan, payday loans are easier to apply for and faster to process and approve. These days, applying for a payday loan can be done online by simply searching “online payday leans near me” or “payday loan offers online” to get listings of lending companies that can help you. Even if you have a low credit score, you can still secure a payday loan, as many payday lenders for bad credit exist these days that are willing to loan money to people with bad credit.
To begin your application for a payday loan, whether a payday car loan or payday house loan, here are the steps you have to take:
Go to the website of your chosen lender and fill out their application form. Usually, these forms are pretty straightforward and ask for some basic information from potential borrowers such as your full name, complete address, date of birth, phone number, email address, bank account information, and loan amount. Whether you are sending your loan application to a lending company that offers payday loan for bad credit borrowers or a financial institution with various loan offers you found after searching ‘payday loans near me with bad credit’, the first steps is basically the same.
After you file your application, you’ll need to collect, scan, and upload the required documents. These include your valid IDs and documentation of your employment status, employment length, employer name, nature of your job, employer contact information, monthly pay, schedule of your next payday, and so on. Your lender may also require you to submit a marital status certificate, copies of existing loan documents, and more.
Once you are done, you wait. Unlike when applying for typical loans, the processing of payday loan applications is much faster. Some larger loans may require you to wait several days, weeks, or months, however in the case of payday loans, you will only have to wait between a few minutes to a few hours.
If you meet the criteria set by your lender, you should have no problem receiving approval. If approved, you should receive a confirmation email that contains details of your payday loan. Make sure to read the loan agreement thoroughly and do not be afraid to contact your lender if you have questions. If you are happy and content, go ahead and finalize the deal by electronically signing the document.
How do you get your money?
It should only take a few minutes to get your money transferred to your bank account. Always be sure to check that you’ve included the correct bank account details on your application form to prevent any delays or problems. The most trusted and reputable lenders even offer expedited payment options to borrowers that urgently need cash. To avoid hassles, contact your bank ahead of time to find out their payment processing period and when you can gain access to your loan and withdraw the money.