Applying for a payday loan is simple. You will spend about five minutes of your time answering a few basic questions your lender will use to grant your approval. Examples of the questions most lenders ask are as follows:
- Are you employed and have you remained employed for the past 90 days?
- Do you have a bank account in your name or with your name attached?
- Do you have an email address and phone number where you can be reached?
- Are you a U.S. citizen or permanent resident?
- Are you at least 18 years of age?
As you can see, these questions are pretty basic and quickly answerable. The purpose of the questions is to make sure you are eligible under law to apply and that you meet the necessary requirements to be able to process your loan. Bad Credit Loans can be directly deposited into your bank account, so it is important you can provide your bank information to your lender. Additionally, the secret behind the loans is that they are based on your income, which is why your employment is essential. Your lender will calculate how much you can borrow based on your income and average paycheck. Loan amounts can range from $100 to $1,000, but the specific amount you can get can vary depending on your own particular state laws and regulations.
Payday loans appeal to many people with bad credit because lenders do not require a credit score from those applying for them since these are income-based loans. Even people with good credit enjoy the ease and simplicity of the loans as they can obtain the cash they need in a short amount of time — no more than one business day — and their loan will not be reported to the three major credit bureaus.
Above all else, people love payday loans because they can get their funds so quickly in comparison with how long it would normally take through other avenues. Applying for a bank loan or a credit card can be a lengthy process, requiring several days before your application is approved or denied. If you are approved, it can take several more weeks of waiting before your funds are disbursed or a credit card is issued. If you can’t afford to wait till payday, then you probably can’t afford to wait a few weeks either while banks or credit card companies process your information.
What Are Your Responsibilities As a Payday Loan Borrower?
Payday Loans are just like other loans in the sense that they need to be repaid. They are meant to be short-term solutions to your cash problems, so repayment is usually scheduled on or around your next payday.
You should never take out a payday loan if you suspect you will not be able to repay it. Not repaying your loan can result in your lender having to report your loan default to the credit bureaus, causing severe damage to your credit. If you feel you may have trouble repaying your loan on time, contact your lender immediately to discuss possible alternatives.
Loan repayment can be fairly simple. You can authorize your lender to enroll you in an automatic payment system that will deduct your due amount on your due date from your bank account.
If you are having money trouble and need a short-term solution to help get you through till your next paycheck, then payday loans can help. They are the fastest and easiest way to get actual cash.