How to Apply for a Payday Loan
Have you ever been short of cash? Do you need to apply for a short-term loan but want to avoid complicated applications? Then payday loans can be your answer!
What Are Payday Loans?
A payday loan is considered the most convenient and easy way to have available funds for urgent or unexpected expenses. What made payday loans attractive compared to other types of loans is their process for application, uncomplicated requirements, and fast release of the cash loaned.
Below are more reasons why millions of Americans consider applying for a payday loan instead of bank loans and other secured loans.
- There’s no need for collateral. Secured loans are considered to be such because lenders require potential borrowers to provide them collateral or an asset to get approved. It’s a form of assurance that borrowers have the capacity to pay the loan back. In contrast, payday loan lenders do not require any guarantors or collateral.
- It can be received through an online application. Compared to bank loans, applying for a payday loan is so much easier. You just have to meet the basic requirements, fill out an online form and credit agreement, and then you’re good to go.
- There’s no impact on credit score. Unlike bank loans, payday loans won’t have a positive or negative impact on your credit score. Whether you were able to pay your loan earlier than expected or not, the information won’t be sent to the major credit reporting companies at all.
Where Can You Use Payday Loans?
This type of loan is usually availed to pay for urgent and essential expenses. Some of these expenses can include rent, medical fees, or even school tuition. Due to the urgent nature of the service, payday loans usually get approved within a few hours.
The Application Process
To apply for a payday loan, you have to meet basic requirements in accordance with the Consumer Financial Protection Bureau (CFPB). The applicant must:
- Be of legal age (at least 18)
- Have a reliable source of income
- Possess an active bank account
- Have a valid ID
Here are the steps on how to apply for a payday loan:
- Fill out an online loan application form. To make this process faster, prepare your income documentation and other necessary documents beforehand.
- Compare lenders. Before deciding which lender you’ll get a loan from, read and compare all the terms and agreements of the service providers.
- Sign the credit agreement of the chosen lender. You will be asked to provide the necessary documentation and bank account information for the payment. This is also done online and will be processed through a secured website.
- Receive the funding. Normally, the money should be available in your account within 24-48 hours.
Thus, the advantages of choosing a payday loan over the other types of financial services are clear. Always make sure to choose your best option in case you need emergency cash!