Payday Loans Online | Get A Payday Advance
An online payday loan is a unique type of loan that relies on a borrower’s employment status instead of a good credit report. Lenders approve loans based on the borrower’s ability to repay the loan when he receives his next paycheck instead of his credit history.
What Do I Need To Get An Online Payday Loan?
The only thing the borrower really needs to secure the loan is proof of employment. They are small loans that are intended to be short term.
Traditionally, a payday loan, also known as a cash advance or payday advance, was a loan that was repaid on or before the borrower’s next payday but in today’s world, the repayment date can be adjusted to better meet the borrower’s schedule and needs. Sometimes, these could be loans approved on the same day.
Common Characteristics Of Online Payday Loans:
There are a large number of payday loan lenders and all payday loans have commonalities
Short-Term – Payday loans are usually due on or around the borrower’s next payday. This might be in a week or a month but is rarely much longer than that. Unlike an installment loan, which consists of multiple payments, payday loans usually require a single payment.
Unsecured – Borrowers don’t need collateral to take out a payday loan. Collateral is something valuable in the borrower’s possession such as an automobile title that will stand good for the debt in the event the borrower fails to repay the loan so the lender can regain some or all of their money. Unsecured lending is riskier for a lender than secured lending so the amounts loaned are typically lower and have a slightly higher interest rate.
Relatively Smaller – Because they are short-term and unsecured, payday loans are usually for smaller amounts than a secured loan because it is difficult for the lender to recover lost resources. They are designed to help the borrower deal with immediate financial hardships yet small enough to pay back relatively quickly. Typical Criteria For Payday Loan Consumers:
- Be at least 18 years old or older
- Be a permanent United States Citizen
- Have a valid bank account that can receive direct deposits
- Have a verifiable minimum monthly income
Online Loans Amounts
Generally, loan amounts will vary between lenders but will typically range from $100 to $1,500. Lenders might even consider larger amounts depending on the borrower’s situation. The determined amount will depend on income and other requirements.
Typical Uses For Payday Loans:
A payday loan online can be used the same as a traditional loan. However, it is important for a potential borrower to keep in mind that these loans are typically for smaller amounts and for shorter periods of time so they are probably best used for unexpected and emergency expenses. Approximately 47.7 million Americans live in poverty each year with average earnings of $44,569.
The average American spends $14, 856 on taxes, $11,970 on housing, $9,477 on additional housing expenses such as fluctuating utility costs and insurances, $5,784 on automobile payments, $2,223 on automobile maintenance and gasoline, $6,759 on food, and $4,290 on health care each year. By simply doing the math it is easy to determine that the average American has a $1,322 deficit in his personal finances each year with absolutely no wiggle room for unexpected expenses or emergencies.
Reasons To Apply For An Online Loan:
There are several reasons that online payday loans are becoming popular:
- Convenience – Unlike loans from traditional lenders, online cash advances can be applied for and receive without leaving the comfort of home with the least amount of hassle. These payday loans are direct payday lender loans.
- Bad Credit, No Problem – Traditional lenders base approvals on customer credit ratings but payday loan lenders have more lenient criteria for basing approvals. In fact, no credit check payday loans are possible. People often ask about guaranteed loan approval no credit check if you have bad credit. It is not as easy as just being approved like that. If you have a history of nonpayment you might be rejected but in general, this is only in the worst cases.
- Speed – When requesting payday loans online, customers aren’t made to wait for a letter or phone call of approval because they receive notice of approval or denial almost instantly based on the information that they provide. Customer’s that provide bank account information can have their money deposited as quickly as the same day or next day. This way, they will have their money when they need it most without playing the waiting game. Also, these direct lender only payday loans do not have additional layers of people to go through, hence the entire process is fast and efficient.
- Availability – Traditional brick and mortar lenders have limited business hours that can be difficult for potential customers to work around. Very few people can miss a day of work in order to apply for a loan with these lenders. Not to mention if the potential customer is in a financial crisis waiting for the approval decision can add to the crisis. With an online payday advance, customers can apply 24 hours a day, 7 days a week and there are no bank holidays when it comes to receiving a cash advance online.
- Meeting Urgent Needs – Traditional lenders will want to know why potential borrowers are borrowing money and what the money is going to be used for. Payday lenders understand that hard times fall on good people and that unexpected expenses come up. When people are forced to live paycheck to paycheck there usually isn’t a cushion to fall back on so payday lenders are sensitive to the needs of those people and understand that sometimes urgent needs must be met. Online payday loans aren’t as intrusive as traditional lenders and customers privacy and financial situations are respected.
What are the requirements for an online payday loan?
To be approved for a payday loan a potential borrower must be at least 18 years old, a United States Citizen or at least a legal resident, have valid employment with minimum monthly earnings of $1000 a month, valid email address, valid phone number, and a bank account that is capable of receiving direct deposits.
One thing that is rarely required and/or taken into consideration during the approval process for a payday loan is a potential borrower’s credit history.
Payday loans are typically unsecured loans that don’t have repayment terms based on a borrower’s history instead repayment terms are based on the borrower’s ability to repay the loan quickly.
Receiving An Online Payday Loan
Typically online payday lenders deposit the borrowed money into the borrower’s checking account within one business day of being approved. The borrower then has instant access to the deposited funds.
Repaying Your Online Loan
The majority of payday loans reach their maturity on the borrower’s next payday at which time the lender will draft the money from the borrower’s checking account. Though these types of loans are meant for short-term use only, the repayment terms are usually flexible in case the borrower is unable to repay the loan in full on his next payday.
In fact, sometimes the borrower will be given the option to repay the loan in installments or roll it over to the borrowers next payday for an additional fee. If you really get into trouble you might consider payday loan consolidation to reduce monthly fees and interest.