Online payday loans are incredibly useful for when payday is still far away, but you need cash immediately. However, most people don’t know what payday loans are or if they’re the right financial option for their needs. Read on to learn about online payday loans and how to determine if they’re right for you.
What exactly is a payday loan?
Also known as a short term loan, cash advance, fast cash, cash loan, bad credit loan or deferred deposit, a payday loan is an unsecured loan, usually for a small amount ranging from $100 to $1,500, that is intended to be a temporary solution to meet your financial needs until your next payday. Another way to look at a payday loan is that you are making out an electronic check for the amount of the advance, plus a fee, to be held until your next payday.
Payday loans are designed to get you through a financial crisis or to help pay unexpected expenses, such as medical bills or car repair costs, until you receive your next paycheck. They are an invaluable financial tool that can help nearly anyone in a tough financial situation.
What are the requirements?
There are very few restrictions to receive a fast cash advance, but the minimum requirements are:
- You must be at least 18 years of age.
- You must have a job (or be able to prove you have another regular source of income).
- You must have an active open bank account (this can be a checking or savings account).
There also might be additional requirements depending on the lender that you choose. Other factors such as income, past payday loan history, direct deposit of your pay, and the state you live in, can also affect whether you are eligible.
The more up-to-date, honest and verifiable information you put on your loan application, the more likely you are to be approved. For instance, entering a cell phone number instead of a home phone number makes it more difficult to verify your information and many lenders will not accept applications that cannot be verified.
How quickly can I get cash?
While some lenders can wire the money to your bank account immediately, most will typically process the advance so that it will be available in your account the following business day after the loan is approved. If you apply on a weekend or holiday, the money will be sent to you by your lender the next business day.
How do I receive my cash?
Typically the money from your advance will be electronically deposited into your bank account by the lender, but you can choose the payment option that works best for you. All payments are processed by your lender by electronic transfer from your bank account.
How much money can I have advanced to me?
Based upon the information that you provide on your application, your lender may offer you anywhere from $100 to $1,500. You may be eligible for larger amounts of money once you have established some payment history with them.
How long do I have to pay back the loan?
Payday loans are typically due on your next pay date; however, most lenders will allow you to extend your loan by paying a fee. Depending on your lender, you may have the following options as to what happens on the due date:
- Pay off the entire amount.
- Renew the loan and pay interest and fees only.
- Renew the loan and pay interest and part of the principal.
How can I apply for a payday loan?
There are many different websites that offer online cash advances, but one of the easiest ways to get one is to apply with a lender matching service. With a lender matching service you simply fill out a short application and their network will identify lenders that can provide you with the cash that you need in a matter of seconds. Because they work with so many different lenders with all sorts of different terms and options, they can find the best match for your requirements in a lot shorter time than it would take you to apply to a bunch of different websites.
Once you are matched with a lender, you may be a required to electronically sign and agree to the terms of the loan. However, there is no obligation to accept the loan when working with a lender matching service. If you are not satisfied with the terms, simply do not sign it, and apply with the service again to find a different lender.