At some point in most people’s lives, they find that they are short on cash. It may be for an unexpected bill, vehicle repairs, or any other reason that you may need cash fast. One great way to get the cash that you need is through a payday loan.
What Is a Payday Loan?
A payday loan is a short term loan, which is typically due between one and two weeks after you receive the loan. Payday loans do not require that you have good credit and they do not require you to provide any collateral.
What Is Required to Qualify for a Payday Loan?
In order to qualify for a payday loan, you need to meet certain criteria.
Income: In order to qualify for a payday loan, you must have income from a job, disability, or unemployment. Most payday loan companies require that you make between $800 and $1,000 per month. You would need to provide the loan company with your employer’s name and telephone number, or some type of documentation to prove your income.
Bank account: In order to qualify for a payday loan, you must have a valid checking account. A bank account is necessary because the loan company will deposit the money into your account, and remove it when the loan becomes due. You would need to provide the loan company with your account number and your routing number.
Personal information: The payday loan company would need your personal information to process your loan. They would need your name, address, telephone number, date of birth (you must be 18 years of age or older to qualify), and your social security number.
How Does a Payday Loan Work?
To get a payday loan, you would first need to fill out the online application. This application would request all of the information listed above. It typically takes only minutes to find out whether or not you were approved. After you are approved, it can take up to 24 hours for the money to get transferred to your account. How soon usually depends on your bank. In two weeks, when the loan is due, the loan company will automatically remove the loan amount along with the interest due.
How Much Can I Borrow?
Because payday loans are short term loans, the amount of money that you can borrow is between $200 and $1,000. The amount of money that you would qualify for depends on your income. If the loan company believes that you make enough to repay $1,000, you would be allowed to do so, however, many payday loan companies do not allow you to borrow the maximum amount the first time. You would need to have had a loan with that company in the past to qualify for the maximum amount.
What If I Cannot Repay the Loan?
If you do not have the money to repay your loan when it is due, you can request an extension. This will give you an extra week to repay the loan, however, you would be required to pay the interest on the additional week. If you default on your loan, the payday loan company will report the default to the credit bureau, which would have a negative effect on your credit score.
A payday loan is a great way to get the money that you need. Most companies do not require faxing any information at all, making this a simple and convenient way to get cash fast.