What Is A Payday Loan?
A payday loan is a non-traditional short-term credit loan that allows the borrower to get cash quickly. Although payday loan lenders operate in storefront locations, typically a shopping center or “strip-mall”, the majority of these types of lenders can be found online making it that much faster and easier to choose and apply for a payday loan. Applying for a payday loan is easy with an online application that takes only minutes to fill out and submit. Payday loan direct lenders can approve you right away and deposit money directly into your bank account within 24 hours. Non-direct lenders may take a little bit longer in getting you approved as they work to find a lender that will accept your loan. With a minimal amount of information needed, getting a payday loan is practically paper-free. Most lenders only ask for a bank statement and will have you “e-sign” so you don’t have to worry about receiving or sending anything through the mail.
Once you are approved, your loan amount will be directly deposited the next business day. If you apply on a Friday, your funds will be available in your bank account the following bank business day. This is always a Monday unless a holiday happens to fall on that day and the bank is closed. You will most likely have to fax or email the lender your most recent bank statement. In the event that the lender doesn’t receive your statement, or has questions regarding it, the loan processing time may take a little longer.
How Much Can I Get With A Payday Loan?
Your loan amount will depend on the state you live in and the payday loan laws that govern that particular state. Each state is different in the amount a person can borrow. The average range is somewhere from $100-$1000 and will depend on your monthly income. Most lenders will require a minimum income in order to approve you for a loan. As with the loan amount, the fees, rates, and terms of a payday loan will vary. Once again, this has to do with what state the borrower is living in. It is always important to research lender rates and fees before you enter into a loan agreement. Credible lenders will have a “rates” or FAQ page and will sometimes give examples of loan amounts and costs.
The payoff for an online payday loan or cash advance is set up as a debit from your checking account so you will not have to worry about sending in your payment. It will be scheduled to come out of your next direct deposit paycheck. Some lenders will even give you a courtesy reminder call letting you know that the payment is scheduled to come out of your account. In the event that you cannot make your payment, it is important that you communicate with the lender to make arrangements to get the loan payment made, and ultimately, the loan paid off.
A payday loan can be a great solution to getting cash when financial emergencies and unexpected costs arise. With the convenience and timeliness that these types of loans offer, getting financial help in a hurry is feasible. It is important to remember, though, that a payday loan is just that; a short-term paycheck advance that is paid back on your next payday.
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