Payday loans, which are sometimes called cash advances, are unsecured loans that are offered over short periods of time. They are called payday loans because they are repaid the next time your payday arrives. In other words, they are designed to help you get by until your next payday. You can get a payday loan by applying online, and the money is deposited directly into your checking or saving s account upon approval.
What kinds of eligibility requirements are there for payday loans?
To qualify for a payday loan or cash advance, you must meet the following requirements:
- You should earn a minimum salary of a thousand dollars per month.
- You should be employed at an organisation or at least receive some type of income regularly
- Your monthly or annual salary should be directly deposited into a savings or checking account at a bank by your employer.
- You need to be a U.S. citizen, and you have to be at least 18 years old
Frequently Asked Questions Regarding Payday Loans
After receiving my payday loan, how may I use the money?
You can use the funds that you receive through your payday loan at your discretion, which means that you can use them for absolutely anything. Most of the payday loan lenders give you your loan amount in cash instead of a bank deposit or similar ways.
What’s the maximum amount that I can receive through a cash advance or payday loan?
Most of the payday loan lenders have a maximum payday loan amount limit of a thousand dollars. However, the amount that you receive will depend on a variety of factors and will be determined by the lender who provides the payday loan.
Do I have to pay a fee to apply for a cash advance?
You don’t have to pay a dime to apply for a payday loan at most payday loan lenders. However, you will need to of course pay an interest on the amount you have received as a cash advance at the end of your loan term which is your next payday.
How does applying for a payday loan work?
If you are filling out an application for a payday loan online, it’s as simple as filling out and submitting a simple online application. You will receive a notification about the status of your loan quickly. But be aware of information sellers who pose as payday loan lenders online, read all documents carefully before giving them your financial information. It is better to go for a direct payday loan with a local payday loan lender as you will get a better deal with them.
When completing an application, what kinds of information do I need to provide?
You’ll need to give the payday loan lender information about your bank account along with your name and address. You will also need to provide employment information to prove that you are currently employed and will receive a salary at the end of the loan term i.e. your payday.
What if my credit isn’t very good?
It shouldn’t be an issue. Very few payday loan providers check applicants’ credit. This is one of the benefits of getting a payday loan instead of a regular loan as the loan issuer doesn’t check the credit history most of the times you are trying to get a payday loan.
Is it okay to have multiple payday loans or cash advances at one time?
No, it is not permitted by most payday loan lenders for security purposes. Most payday loan lenders will not give you another payday loan until you have paid the previous one at the end of its term.
How quickly will my cash advance be processed?
Payday loans are usually processed in a single day by most payday loan lenders. Otherwise, they are completed by the following business day.
When do I have to repay my payday loan?
It will automatically be repaid on your next payday.
Can I repay my loan ahead of schedule?
It’s usually possible, but you need to contact your lender. If you pay it back early, you might be eligible for some type of refund.
What happens if my loan can’t be repaid on time?
If you know you won’t have enough money to repay your loan on the scheduled date, you should make it a point to contact your payday loan lender immediately. If you fail to pay your payday loan, most payday loan lenders sell your debt to loan reclamation agencies who use very questionable methods to retrieve the amount. It is wise to contact the payday loan lender and settle for a lower amount to be paid or convert the loan into an EMI with a higher interest rate.