Payday loans are short-term loans given in small amounts. It is for people who need financial assistance during times of emergencies. Payday loans are also called payday advances or payday cash advance. Since it is meant to be a form of filler until the next paycheck comes, online payday loans may be as small as $100.00. Companies usually have a cap of $1,500.00 for every payday loan. It is short-term because the due date is on the next payday or two weeks.
It is quick and easy to obtain a payday loan application. The internet has thousands of businesses offering payday loans. Most offer payday loan application processing in just a few minutes time. Some can even go as far as claiming that approval can be had in just two minutes! Companies also offer the No Fax processing which means that they don’t require the borrower to fax documents to their offices.
Companies offering payday loans will not check your credit history. They are aware that the people who avail of their loans are ones who don’t have a credit history yet or who have a bad credit history. However, if you have a previous experience with another payday loan company and you were delinquent in your payments, they will know this and may not approve your loan.
The requirements for a payday loan application online are a proof of income of at least $800.00 a month or more. The borrower must also be able to provide an active and open bank account. There must also be no active payday loans from other companies. The loan approved will be deposited in the borrower’s bank account. On the maturity of the loan, the lender will automatically deduct the loan amount plus interest plus fees from the bank account registered by the borrower. Online payday loans assure the borrower of quick approval of loans with the cash being deposited to their bank accounts. This way, the borrower need not even leave the comforts of his home to obtain this loan.
A payday loan application can also be done in various establishments or actual stores offering this service. When you apply, you must bring with you your documents – your proof of income or your last paycheck, your proof of employment and your check. These stores require that you issue a post-dated check as payment in exchange for cash. If you have all the necessary documents, this whole payday loan application process will only take 15 minutes.
It is indeed quick and easy to process your payday loan application whether you do it online or prefer to pass it in person. A word of warning though, payday loans should only be taken for matters of pure emergencies or when it is better to take a payday loan instead of incurring a higher interest rate elsewhere. If you have to constantly take out advances from your paycheck, carefully consider what else you can do to improve your financial situation. Payday loans are short-term solutions only and must not be the solution for problems accrued over time.