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Payday loans are small cash loans, $1,000 or less, that are usually paid back on your next payday or the next time you receive money from another regular income source, like Social Security or Disability Benefits. The terms and conditions of the loan, fees, the amount you can borrow, etc. depend on your state laws and income.
If you don’t have any other option to get quick cash during a financial emergency, requesting an online payday loan is the best option.
New payday loans involve the following:Request Process
You can request a new payday loan by submitting a simple and easy online payday loan request form. This request form is sent to a large network of lenders who review your request. If approved, a lender who wants to lend to you then contacts you directly to get further details or explain the terms and conditions of your loan.Approval Process
You get quick approval and notified immediately about your small payday loan approval. Payday advance loans are approved fast as they do not involve any credit checks. Your credit score does not influence the approval decision. People with bad credit scores are also approved fast.Getting Your Fund
Once your request is approved, you get the money directly transferred to your bank account the next business day.Repayment Process
The repayment of a payday loan is also simple. The total loan amount with interest is automatically withdrawn from your bank account on the repayment date, which is usually your next payday.
According to the latest payday lending statistics in the United States, payday loans are used by people from all demographics and regions. 12 million Americans use payday loans every year. 7 out of 10 borrowers use payday loans to pay bills, which include utilities, car payments, etc.
The commons reasons to take payday loans as per payday loan statistics:
The basic requirements to qualify for a small payday loan include:
Yes, you can even qualify for a payday loan with alternate sources of income that can prove you can repay the loan. If you are unemployed, your lender may review your financial information to verify the other source of income. Your lender may accept the following alternate sources of income:
The maximum payday loan amount you can borrow depends on your state’s laws and your income details. Most states have a payday loan limit between $300 and $1,000. However, that doesn’t mean you will get the maximum amount allowed in your state. Your payday lender will check your income, expenses, and payment history to determine the maximum amount you can receive.
It depends on your state of residence and lenders. However, it’s not recommended to take another payday loan to pay the first one. If you are considering taking out a second payday loan, keep the following things in mind:
Review the eligibility criteria carefully – Some lenders specify that you can’t use a second payday loan to pay the first loan. Therefore, you may not qualify for the loan you were once qualified for.
Check your finances – Check whether you can afford the loan repayment. If you can’t make multiple loan payments, you should consider other financing options.
Payday loan fees are regulated by state’s laws and vary considerably. Depending on the maximum amount you have borrowed, the loan fees are generally $10 to $30 for each $100 borrowed. This converts to an annual percentage rate (APR) of 400% (approx.) for a two-week payday loan.
For example, if your payday loan amount is $400, before the next payday, you may be required to repay $460, assuming a fee of $15 per $100. We will have to pay more if you have a payday loan for a longer period.
As part of your loan agreement, you are required to give the lender access to automatically withdraw money from your bank account. If the debits are not successful, the lender might try to withdraw money in smaller chunks. You may face penalties and unnecessary bank charges for each failed attempt. Ask your lender for an extended payment plan if you are unable to repay the loan amount on the due date.
No, according to federal law, you cannot be arrested for an unpaid payday loan. Never ignore a court order, appear before the court, and provide all the required information. You should consult with an attorney to help you with the legal process. Most unpaid loans are referred to collection agencies.
When you can’t pay back your loan on the due date, some lenders may provide you the option to renew or rollover the loan. You have to pay an additional fee for this option. However, many states do not allow renewals or rollovers.