In the current times, the financial world is nowhere like what it used to be decades back. A number of things have changed for the better. With the advent of the internet, procedures such as making transactions, investments, and applying for loans have become a lot easier.
Back in the days, getting a loan was very time-consuming and rather burdened with documentation of different sorts. However, nowadays, some kinds of loans are as easy as just filling up the form, providing proof of identity, and getting approval. The online payday loan is one such borrowing instrument that is designed to be quick, easy, hassle-free, and straightforward.
What Is A Payday Loan
A payday loan, also known as cash advances, is a simple loan scheme that is low-balance, short-term, and high-interest. The loans generally exist at usury rates. For an individual with quick cash needs, payday loans may be an idea especially if they are salaried. In different parts there are different names for the payday loan – this is also called cash advance loans, deferred deposit loans, check advance loans, and post-dated check loans.
How To Apply For The Payday Loans
The application procedure for payday loans is very simple and quick. If you have all the required documents and proofs, you can get one approved in a matter of 10-15 minutes. All you need to do is look for banks and lenders online who offer payday lending. Read their terms and conditions for the loans. Ascertaining that you fulfill the criteria, you can go ahead and fill up the online application for the loan and upload your documents. Once they have reviewed your application, you should get a mail of approval, and that is pretty much it. Be careful and be sure to pay attention to the fine print and don’t end up accepting terms that don’t fit you.
Although payday loans are fairly easy to get, you should still know different aspects of them to avoid any disturbances in the future. For your benefit, we have compiled a list of factors that you must consider before you proceed with the application. Let us have a look through it:
Payday Loan Brokers
The loan connection service commonly referred to as brokerage service helps make your process smoother. Based on the information you put up in your application, they take you to the lenders that best match your requirements. However, a broker also brings along several middleman disadvantages such as harm of privacy and service charges, etc.
Have A Source Of Income
This is a prerequisite for payday loans. Typically no lender would offer you a payday advance if you do not have a proof of income source. Therefore, when you bring your application for the loan, make sure you have a document to prove your income. Since it is a collateral-free loan, the income proof is rather crucial for the lender.
Documents You Need To Have
Though different lenders may ask for different documents and things, several items are going to remain mandatory in most cases. You need to have a Social Security number (SSN), photo identity proof such as your driver’s license, and an active check account, etc. Without these documents, you may not be eligible to apply for the loan.
Only For 18 Or Older
To ensure that you are not underage or too young to deal with complex financial situations, you are required to be 18 or older in order to send your application for the payday loan. In some cases, the age requirement may even be 19 depending on the region of your residence.
Write A Post-Dated Check
You may have to write a post-dated check with the principle and interest amount for your lender. This check works as a guarantee of payment for the lender. When the payment date comes due, you can either make a complete payment, or your lender will go cash the post-dated check. You can also ask for an extension if you are not prepared yet to pay.
Both Online & Offline
With these loans, you have the option to go offline or online at your convenience. Most lenders and banks process and approve your application without requiring you to visit them. However, if they have some special requirements, they may request you to visit them physically. That also helps you to get things clear.
Payday advances are a great financial instrument for every salaried person. Whether it is an emergency expense or payment of bills, you can count on payday loans to help you out. These loans are even easier when you know different factors about them.