Common Questions on Payday Loan Answered

Most of the Americans live from paycheck to paycheck. The moment they receive their paycheck, they spend it in paying their bills and other necessities leaving it no money left for emergency expenses. Consider getting the paycheck and spending it to pay the bills and grocery expenses. The next day on the way to work, an unexpected inconvenient situation is encountered. It is the most difficult time when you get short on the budget. Perhaps, you have engine trouble on your way to work, not to mention, you catch a cold and there isn’t any money left in your pocket. This is where quick cash loan comes in. 

What is a payday loan?

This is a type of short term borrowing. Think on it as an advance payment from the company where you are working with. The only difference is you borrow a small amount of money with an interest. Normally, it is called as cash or check advance loans. Lenders provide cash loans to their customers in their time of need. Say you are experiencing a financial hardship and lack money before the next payday, lenders can provide a small temporary cash for emergency expenses. 

How much cash loan is allowed?

Lenders are able to provide from $100 up to $800. However, there are certain factors lenders consider before they approve the cash loan. Some online payday loan lenders provide an application which is convenient for their customers and for them as well. The one page application is where and how lenders decide on how much can they lend to their customers. 

How is the payday loan approved?

This is the reason why most Americans prefer payday loans because it gets approved instantly. As you apply for the loan and the moment you click on submit, the lenders will be able to receive the request. Then they recommend an amount that they can lend. The process in borrowing the money may be simple in payday loan compared to a conventional loan which is complex. But just like any other loans, customers with bad credit or no credit are most likely impossible to be approved.  

What are the requirements to get a cash advance?

Lenders only cater to customers who are employed. You have to be a US citizen, 18 years or older, holds a valid phone number and a checking account. Since the lender needs to verify on the customer’s employment, you will be asked to provide for employment information. In addition, the social security number and the checking account information will be required.

When will the money be deposited to the account?

Lenders ensure their customers to receive the money within 24 hours. Customers are not advised to apply for a loan on holidays or weekends since they are not open. Else, it is advisable to apply on weekdays to be able to receive the money within one business day.

What makes it different from conventional loans?

Most conventional loans require documents to be sent through fax. Meanwhile, online payday loans are convenient. The entire process is done online.

It is important to have knowledge on how a payday loan works beforehand.