A payday loan is an easy way to get emergency cash to pay bills or meet other financial obligations between pay checks. There are only a few basic qualifications necessary in order to gain approval for most loans.
1. Have a job (this is obvious)
2. You must have an active checking or savings account.
3. You must meet certain minimum monthly income requirements.
All of the companies that we deal with support a 100% online transaction process. When your loan is approved the funds are typically transferred directly to your bank account by wire transfer or direct deposit. Bacause all transactions are conducted online it will allow you to access payday loans any time 24 hours a day, 7 days a week. Repayment plans will vary from one lender to another. You should take the time to investigate the terms and conditions of a lender before applying. In most cases, repayment is due on your next payday, but the term of the loan can usually be extended by paying additional fees to the lender. The amount of money that you can borrow will depend upon your income and the laws of the state in which you reside.
Typical fees charged by the lender will include transaction fees and interest fees. Because most payday loans do not require a credit check or background check, interest rates tend to be somewhat higher than a conventional personal loan. Many payday loan lenders charge a flat fee for each day or some other fixed period of time. Please read the terms and conditions of each lender before making a decision. On average the cost for each $100 borrowed is in the range of $10 - $20.
All lending companies are required to post an annual APR including transaction costs as well as interest rates. This is required by federal law. You can use this APR to compare the rates of one company to another. Because of the convenience of the Internet you may check these rates from the comfort of your home at any time of day or night. Many online lenders will offer a loan at a reduced rate for first-time borrowers.
A payday loan is much easier to acquire than a conventional personal loan. Because of the fast turnaround of a payday loan it may be more attractive to you if you are in need of fast emergency cash.
Your credit score will not be effected provided that you re-pay the loan on time. Your credit score can be damaged in the event that you do not meet your repayment obligation.
The general system of getting a payday loan usually involves the signing of a loan agreement between you and the lender. The agrrement will detail the terms and conditions of the loan, the contact information of you and the lender, a disclosure of all fees and any other obligations that are required of each party.
You may end up in court if you fail to repay your loan. It is very important to ensure that you will have the means to repay before agreeing to a loan with the lender.