Payday loan is a type of unsecured loan that requires you to pay back on your next pay day. Anyone can apply and you don’t need a guarantor to get approved. There is no background check and hard inquiry when you apply for payday loan. Since they do not check your credit report,they will approve the application even if you have bad credit or in post bankruptcy situation. The funds from a payday loan can be used for any current expenses that you must settle, for example, tuition fees, car repair, plumbing fee, and food.
Payday loans can give you access to cash on the same day you apply. If you are short on cash, you just visit the payday loan site and fill in the form on how much you need to borrow. It takes lesser than 5 minutes to fill in all the required information in the form at the site. It is free to submit the form. You don’t have to pay any application processing fee.
The loan request form will ask for important information like loan amount, duration, salary day, next payday, monthly salary, partner income, monthly expenses, employment information, name and mailing address. It is important that accurate information is entered into the form. The lender may call your employer to confirm that you work there and the salary that you receive every month. If there is any incorrect information, the lender will have to call you and ask you to clarify it.
Borrowers can borrow up to $1,100 to spend on emergency expenses. The loan amount that is approved will depend on the income that you are earning. Basically, you must earn more than the loan amount that you have applied. Within seconds of submitting the application, a staff will send you an approval decision. You can see the funds in your bank account in as fast as 1 hour if you receive an email that states your payday loan is approved.
Some payday loans online lenders will require you to submit a few documents, for example, a pay slip as proof of income if you work for an employer. If you are self employed, you must provide proof of the bank account statement so that they know you are paid by your customers. They will also require you to submit a state issued personal identification document such as driving license to confirm your citizenship. You must have a savings account in good standing that is opened in a local bank. In addition, you also have to be 18 years old or above to legally apply for payday loan.
Payday loan has expensive interest that can reach as high as 900%. They also charge hefty fees if you need more time to repay the loan. Therefore, before going to the lender, make sure you have the money to repay back the loan in full when the due date arrives. Payday loan needs to be repaid fast in 2 weeks – 3 months. Some lenders allow you to pay back in a number of installments while others require you to pay the full amount on a single due date.
When apply online, the lender can fund your loan in various ways including direct deposit to your account, and debit card. If you are at a local payday loan shop, you can receive the funds in cash. For your safety, it is best to obtain a loan from a payday lender that is regulated by an established organization such as FCA. If the lender is not regulated, they may use illegal means to get you to pay back when you did not submit payment by the due date.