You might have heard of them you might not. There are types of loans that go beyond those offered by banks with hefty fees, penalties and interest rate charges. I hope that this article will help demystify payday advance loans.
What is a payday loan? Moreover, why would you take one?
A payday advance loan is a short term (often less than a month long) to get you through to when your paycheck comes in. These normally cover an emergency (car break down) or the unexpected (need a gift for a birthday). Life being what it is this is more common than anyone likes to admit. The fees range from $15-$30 per $100 borrowed.
Where do you apply?
You can apply either direct in person or you can apply online. You can be better off applying online as you can do some comparison-shopping amongst different lenders, and have your privacy guaranteed by making the application from the comfort of your own home.
What are the requirements?
The general requirements are that you are over 18 years old, have a checking account open for over 90 days, are employed earning a minimum of $1000 a month. There are no credit checks so don’t worry about you credit history. Individual lenders may have additional requirements that you need to check before you make an application
How do you apply?
The application process often involves a single form that will collect your personal information including your address, monthly income, and bank account information. They may want copies of some documents – paychecks stubs for example – which you can either scan and send or fax direct to them.
How long does it take?
An application a physical store can take up to two days, but online applications tend to guarantee you the results within the hour. I would personally take the online route: You get the results faster and can often have the funds deposited in to your account the same day.
How do I pay it back?
Normally, you will write them a post dated check or issue instructions to have the loan repaid automatically when your paycheck comes in. If you cannot make the payment you can request an extension on the repayment.
A word of caution:
Always shop around and make sure the lender you are signing up for is the best one available as different lenders offer varying rates and charges so it is important to take some time to search and get the best bang for your buck.