In order to make you feel more at ease about the procedures of payday loans, we have gathered some facts about the most frequently asked questions by other payday loan customers. The first time you go through the payday loan application process, you might find yourself a bit confused or curious about how these loans work. These facts should help alleviate the confusion and fulfill your curiosity about instant payday loans.
What is the definition of a payday loan?
A payday loan is defined as a small loan for individuals who cannot wait until their next pay period to obtain cash. The loans are most commonly issued to people who have poor credit or no credit. The money is often used for emergencies but serve many purposes to those who borrow from a payday loan company.
Are you a lender or do I have to go through another site?
We are not a lender. Our job is to connect potential borrowers with lending companies who perform payday loan functions. We find the best lenders to suit your personal situation. You then have several options to choose from.
What is the total amount of cash I can borrow on a payday loan?
The amount of cash that lenders are willing to extend to borrowers differs from lender to lender. Total weekly pay of the borrower has a great deal of impact on the amount available to borrow. The lender will inform you of what amount you are qualified to borrow from them.
What are the requirements for qualification of a payday loan?
There are a few requirements for borrowers in order to qualify for an instant loan. The most important item is a paying job. The borrower must make at least $1000 per month in order to qualify for most loans. The borrower must also have a checking account as well as direct deposit of their paychecks. Legal US residency is required to obtain the loan as well. There are no credit checks on payday loans, so the requirements are fairly simple to meet.
How high are the interest rates on payday loans?
Interest rates on payday loans depends on the loan company which you decide to obtain the loan through. Since we give you several options for different payday loan companies, the final determinate will be which company you choose. It is wise to do a comparison of payday loan credit interest rates prior to making a decision on the company you choose to acquire. The information on the payday loan interest rate can be found on the agreement listed on the lender’s page.
What happens if I default on the pay day loan?
If you default on a payday loan, the loan company will take you to court for legal action. This is a very rare instance because of the nature of the loan. The loan repayment is made through auto withdrawal from a checking account. It also requires that the borrower have their paycheck electronically transferred to their checking account. It is very difficult to default on a payday loan. If a default action is required, the borrower will be held responsible to pay the legal fees as well as court costs for the action to be taken to court. It is imperative that you pay the loan payments on time to avoid such action.
Do I have to have a checking account to get a payday loan?
In most cases, you will need a checking account in order to get a payday loan. That is the only way for the lender to feel assured that they will receive their payments in a timely manner. If you do not have a checking account and wish to obtain a payday loan, you should open a checking account before attempting to get a loan.
What if I do not have access to a fax machine and am asked to fax information?
It is not always necessary to fax information to a payday loan company. Pay stubs and identification may be necessary though. If you do not have access to a fax machine, you can either mail the information or find a business that performs faxing services for a small fee. Libraries and convenience stores often offer these services on a per page basis. If you mail the information, it will take much longer to obtain the loan, but it must be done in order to complete the process.
I am already paying on one payday loan, can I get another one?
Some payday lenders will still allow borrowers to take out more than one payday loan at a time. If you choose to do so, the loan company should be made aware that there is already one outstanding payday loan. A payday loan will not do you any good if you cannot pay them when they come due. Be truthful on the application because that is a legally binding contract and being dishonest could land you in hot water if it goes before a judge.
How long can I take to pay a payday loan off?
Payday loans can only be taken out for short periods of time. The normal payday loan must be repaid within a month or two of borrowing it. The amount of the loan taken out on will determine how much your total payment will be per month. Before signing the contract, make sure to understand how much each payment will be. If the payment seems too high to reasonably pay, do not accept the loan or attempt for a lower amount so you do not end up in deep financial trouble down the road.
Instant loans have been helping thousands of people with bad credit as well as no credit, to obtain the money they need for important things in their life. These loans make it easy and fast for anyone to obtain, making them desirable when an emergency arises. If used in the correct manner, these loans can be a lifesaver for some people. Take great care in applying for these loans so that you are able to borrow again in the future.