How do I qualify for an online payday loan?

Posted on Jan 2 2013 at 09:49:38 AM in Finance & Investment

What is an online payday loan or cash advance?
A payday loan or cash advance is an unsecured, short-term cash loan to help you until your next payday. Customers who live paycheck to paycheck choose payday advances to cover small, unexpected expenses while avoiding costly bounced-check fees and late payment penalties. You can apply online for a payday loan and your advance will be electronically deposited to your checking or savings account.

What can an online payday loan be used for?
Whether you are paying off bills, celebrating a special occasion, or covering an unexpected cost, your payday loan is there to be used at your discretion.

How much can I receive? 

Your first online payday loan is based upon the information you provide in your application. You typically may request up to $1000. Ultimately the online payday lender will decide your loan amount.

How do I qualify for a payday loan?

You should meet all of the following requirements:

• Currently employed (or receive regular income)
• Earn at least $1000/month
• Be 18 years of age or older and a U.S. citizen
• Have a checking or savings account with direct deposit.

What is the procedure to apply for a payday loan online?

Complete and submit the application found on an online payday loan lead generation website. At that point, the approval process will immediately get under way as your information will go to an online payday lender in the online lead generation's payday lender database (and depending upon your application information, it may take a few online payday lenders to qualify your information before you are approved for an online payday loan) and then you will be notified of your of your status.

What information do I need to complete the application?

Typically, an online lead generation site will require your name, address, employment information and banking details in order to complete your payday loan request.

Is my personal and financial information secure?
Make sure that the online lead generation site uses a variety of security measures to maintain the safety of your personal information. All sensitive data transmitted between your browser and their website should use 128 bit Secure Socket Layer (SSL) encryption technology.

Is there an application fee?

NEVER PAY an application a fee to qualify for a payday loan.

Does submitting an application obligate me to take out a loan?
No; submitting an application simply states that you are applying for a loan and requesting options, terms, etc.  You may ask the lead generation company or ultimately the lender that approved your application any questions, and withdraw your request if you so choose. If you are ready to proceed, you may confirm your information and officially agree to the terms.

What if I have bad credit? 

Typically, online payday lenders do not perform credit checks with the main credit bureaus. As a result many people with less than perfect credit take advantage of payday loans and cash advances.

Does being a tenant influence my eligibility?

Whether you rent or own your home, it does not affect your eligibility for a payday loan.

Do I need to fax my information?

Only in rare cases will you need to fax any documents.

Can I have more than one payday loan at a time?

No, all other payday loans must be repaid before another may be granted.

Do I need direct deposit?

Your bank account must be set up with direct deposit to qualify for a cash advance. It is the most secure way that online payday lenders can secure loans.

When will I receive my payday loan? 

In many cases you will have it the same day, but it should take no longer than the next business day.

When will my loan be due?

Repayment is scheduled for your next payday.

What if I want to pay back my loan early?
Contact the lender if you wish to pay off your loan before the scheduled due date. In doing so, you may be entitled to a partial refund of your loan fee.

What if I am unable to repay my loan by the due date?
Contact your lender if you feel you will not have the money for repayment (but before you sign off on the online payday loan, check the terms for late payments and ask the lender to explain those terms in detail; make sure you understand what happens if you are unable to repay the loan by the due date). And, ideally, do everything you can to repay the loan on time, including cutting back other expenses.

How often can I get a payday loan?
You can get a payday loan if you qualify and don't have other payday loans outstanding, but ideally they should only be used for emergencies and a short-term solution to an urgent cash need. They should not be used repeatedly to deal with continuous budgeting issues.  See a non-profit credit counselor if you are having trouble on a regular basis.

  Article Information
Created: Jan 2 2013 at 09:49:38 AM
Updated: Jan 2 2013 at 09:49:38 AM
Language: English