What is a payday loan?
A payday loan, also known as a cash advance, is a short-term loan used to cover immediate expenses. (1) Typically, a payday loan ranges from $100 to $500, and is petitioned when the lendee is in need of emergency cash.
Who asks for a payday loan?
As payday loans are normally requested by people needing immediate cash, payday loans are normally distributed to individuals receiving a monthly income but needing extra money to pay for rent and other basic expenses.
What are other names for payday loans?
Payday loans are often confused or used synonymously with the following loan possibilities: cash advance, cash loan, short-term loans, bad credit loans, and check cashing. (2) A payday loan, however, is a short-term and unsecured loan granted to select individuals.
Who qualifies for a payday loan?
A payday loan is intended for people who need extra cash before payday. That said, payday loans are reasonably easy to qualify for. One must be 18 years or older and currently hold a job that pays over $1000 per month after taxes. The person must also have a permanent residence and an operating telephone number and e-mail address. (3)
Do I qualify for a payday loan?
If you meet the above criteria and have an existing bank account, you may qualify for a payday loan. You many not qualify for a payday loan if you are unemployed or currently serving in the military.
Does current state of residence matter?
In fact, one’s current state of residence may disqualify you from a payday loan. Restricted states include Ohio, Georgia, West Virginia, and Virginia. These four states offer other options for attaining emergency funds. That said, a cash loan may be filed and granted through the internet.
How do online payday loans work?
After locating a payday loan service, such as iloansnow.com, the lendee will be matched up with a lender. The lender will then adjudicate whether a loan should be made. If the lendee meets all prerequisite conditions, the lender will most likely grant the payday loan and stipulate the loan conditions.
What are typical payday loan conditions?
If the lender approves of the loan, you will be given repayment choices, rates and applicable fees. With payday loans conducted through the internet, the lendee may be required to electronically sign and approve the loan conditions.
What happens then?
Once the loan is approved and signed for, the payday loan will be electronically deposited into the specified checking account of the lendee. At this time, payday loans are not granted over the phone because of identity theft and fraud concerns.
When do payday loans need to be repaid?
There is no default time limit to repay a payday loan. The lender will set the terms; payday loans may be remunerated immediately or over an extended period of time. In most cases, payday loan companies will allow generous repayment options.
How long does a payday loan take?
The application for a payday loan may take as little as five minutes. Once the application is sent in, a site like iloansnow.com will link the lendee up with a lender based on the information in the lendee’s application. Fees and terms will be worked out with the lendee and not iloansnow.com or similar services. Lendees may decline the loan after seeing the terms but before signing.
What are the fraud concerns?
If the lender is certified by the Better Business Bureau, then you can be assured that your credit information will be handled with care. The lender, however, will need your account number and routing number to electronically transfer funds. In other words, you cannot consummate an online payday loan without furnishing the lender with basic credit information.
Where does credit score factor in?
A credit score is number assigned to an individual that indicates the likelihood for a lendee to repay a loan in a timely fashion. You may still qualify for a payday loan with poor or no credit. Although lenders may look at a possible lendee’s credit score, the credit score will typically have no impact on loan approval. As a perfunctory matter, some lenders will check credit score via credit bureaus like Experian and TransUnion.
What occurs after approval?
After lendees have been approved of a payday loan, they will be apprised of the loan conditions. These conditions will include the repayment term, interest rates and applicable fees. If the lendee agrees to the loan’s terms, the lendee will electronically sign and wait for the money to be deposited.