Recently, the payday loan industry has grown tremendously in the USA. With so many people living paycheck to paycheck, unforseen situations like as a medical bill can be extremely difficult to pay. Payday loans are intended for these unforseen financial situations when there are no other options available. Here are some of the more frequently asked questions people have on payday loans.
What exactly are payday loans?
Payday loans are short term loans for those situations when money is needed quickly. Payday loans will advance you money for a time period of two to four weeks. You will be to pay back the loan amount plus interest and fees on your next paycheck date. Payday loans are also referred to as cash advance loans or payday advance loans.
How much interest will I pay for my payday loan
Keep in mind that all payday loans come with a high interest rate. Lenders will typically charge somewhere between $15 and $30 for every $100 you borrow. The actual amount will depend on the payday loan company, your own qualifications, and the total loan amount.
How much money can a payday loan give me?
Payday loans can give you anywhere from $100 to $1500. Again, this will be determined by the lender and your own qualifications. A handful of payday loan companies can provide loans of over 1500.
What is the payday loan process?
Payday loan applications can be submitted in person at a payday loan center, on the phone, or online. The payday loan company will require you to complete a loan application which will ask for just basic information including your name, address, place of employment, and monthly income. The majority of payday loan companies do not need a credit check. Once you submit your application, you will likely get a decision that day. Assuming your loan is, the loan amount will be deposited directly into your bank account within 24 hours. The lender will than debit the owed money from your account on the due date.
How long does it take?
Luckily, the whole payday loan process is extremely fast. The majority of payday loan companies will finish the verification process and deposit the funds directly into your account in less than 24 hours. In some cases, payday loans may be given as fast as one hour after your loan application was submitted. These loans are most commonly referred to as one hour payday loans.
What are the qualifications for payday loans?
Different lenders will have their own qualifications for payday loans, but the standard qualifications necessary in order to be eligible for payday loans are listed below:
* You should be a citizen of the US
* You should be at least 18 years old
* You should be employed with a monthly income of over $1000
* You should have a valid checking account
What if I can't repay on the due date?
If you aren't able to pay back the payday loan amount when it comes due, you will be able to extend the due date out. Remember that that you will not only have to pay an extra fee for the loan extension, but you will also be responsible additional interest for the extended time.
