Payday loans are very useful especially when you need some cash to take care of unexpected financial emergencies. They can be used to pay for car repairs overdue utility bills buy an item that is on sale or just to keep a bank account on the positive to prevent hefty overdraft charges from being charged on the account. These loans have always been very popular but the number of people who currently borrow these loans has gone up significantly in the recent years due to the introduction of online payday loans. The internet has made it very easy for loan applicants to fill out application forms and submit them from any location. The only thing they need is an internet enabled cell phone or computer.
Important Facts About Payday Loans
It is important for potential borrowers to realize that these loans are short term. They normally have a term of less than one month. These cash advances are due on the next payday usually at the end of the month. This means that the outstanding balance principal plus fees must be paid off in one installment at the end of the month. Due to the short term nature of this credit facility lenders are normally exposed to very little risk so they do not mind lending to people who have poor credit scores. In fact many lenders do not usually run credit checks. The vast majority of lending companies only offer their credit facilities online but there are also others who offer these loans in brick and mortar stores.
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The Process of Procuring A Payday Loan
Applying for a payday loan is a fairly simple process. All a person needs to do is find a lender who has the best terms then submit a duly filled loan application form. Reputable lenders have high ratings with the Better Business Bureau as well as local review websites. Therefore potential borrowers should visit numerous sites to check the ratings of different lending companies before making their decision. Reading testimonials from previous clients can also help with the decision-making process. Loan applicants need to provide accurate information when filling out the application forms. This is because the lender will check all the details provided to confirm the identity and eligibility of the applicant. While no faxing of documents is necessary the lender may request more information if some of the details provided is inaccurate unclear or outdated. If everything is fine the loan will be approved and the funds wired to the bank account of the borrower. This normally takes less than one day. When the due date arrives the outstanding balance is automatically deducted from the account of the borrower.
Eligibility and Loan Application Requirements
Salaried employees business owners and any other person who receives a regular income from either employment or business activities among other sources can apply for this loan. However applicants must be at least eighteen years of age. Only citizens or legal residents can apply for these loans. Some of the details that may be required when applying for payday loans include employment information average monthly salary expected pay-day name of the applicant address phone number e-mail loan amount bank account information and social security number among others.
How to Apply
There are two ways of procuring payday loans. Loan applicants can either find the right lender and apply for the loan by themselves or they can work with payday companies or brokers. Payday companies normally act as a link between loan applicants and lending companies. After filling out the application form the applicant’s personal details are forwarded to the most suitable lenders. Loan offers are then sent to the borrower through e-mail. If the terms are favorable the borrower can sign the agreement. The money can then be wired to his or her bank account. Reading the terms and conditions page of the loan contract is very important. Please note that you can always find other lending firms with better terms if you are unhappy with the terms offered by a certain lender.