The Simple Logic Behind Payday Loans
Everyone needs cash now and then, but not everyone has enough savings in their bank accounts or a chance to quickly borrow a hundred or two from friends and relatives. On the other hand, absolutely every US citizen of legal age can make use of payday loans — simple cash advances (usually up to $500) that can be returned within a relatively short time frame — usually, around two weeks.
Unlike many other types of credits that call for a thorough bank history check, proof of employment, and plenty of other legal details, pay day loans are accessible to everyone. These types of quick credits got their name for the simple logic behind the whole operation. So, when you face urgent expenses before your monthly check comes in, anyone can receive the emergency cash from the creditor and return the sum in full once you get your income.
The whole procedure of receiving such a loan is incredibly simple — not only because you are lending a minor sum that can be returned in a single bill. Another advantage of a PAYDAY LOAN is that people do not need any through bank investigation. More than that, they do not even have to go anywhere because anyone can fill in an application form on the webpage and get lending to their debit card.
Online Payday Loans Explained in a Nutshell
An online payday loan is no different from any other lending you can get physically, in a bank or a creditor’s office. It follows the same logic, rules, and conditions. The only difference is that you do not have to go anywhere physically because the whole process happens online — as the name kindly suggests.
How to Apply For Payday Loans Online?
Depending on a particular lender, as well as the borrower’s state of residence, some application details may vary slightly. But as a rule, they go down to four simple steps:
- Choosing any website you like. There are plenty of reputable verified borrowers who offer all US citizens to lend money online. You can choose any platform to your liking and even check out previous customer reviews online. On the other hand, there are aggregator sites that can get you in touch with prospective lenders. The logic is more or less the same, but the latter ones tend to be pricier because they’re not charitable organizations, but businesses that need to make a profit. So, it’s more reasonable to contact a particular company directly — they are not hard to find, after all.
- Filling in an application form. This usually takes just a couple of minutes, because the only obligatory graphs are your name, legal address, and social security number. And, of course, the sum you need now, and the time you’ll need to return your debt in full.
- Waiting until your request is approved. This may take up to 24 hours, but most online payday loans are approved within 3-4 hours tops. But, once again, this happens only if you contact the lenders directly because using an aggregator platform implies looking for prospective lenders, and that takes time.
- Receiving the sum you need to a bank account. The moment your lending is approved, you’ll get a notification. After that, just check your statement — the money should arrive within an hour or two.
As an option, you receive the sum you want in cash —in one of the lender’s local offices. Most companies will offer you such an opportunity, but surely, you’ll need to look for lenders in your particular city or neighborhood.
Reasons to Apply for a Payday Loan Online
- Saves time and effort. This one is one of the obvious perks of receiving payday loans online. If you want to receive the sum directly to your bank, you can choose from a whole range of eligible lenders across the entire country. If you need money in cash, you will still have several variants in your vicinity, especially if you live in a big city.
- Does not call for any complicated paperwork or credit checks. Receiving a payday loan online does not imply any thorough credit history investigation or submitting tons of legal paperwork. The whole process is simple and intuitive, which means that it — once again — saves time and effort.
- Leaves no trace on your bank history. Since no check is required, getting a pay day loan cannot influence your credit score — not negatively, at least. If, however, you already have a bad credit history and know for a fact that you can return a new loan in time, this type of borrowing can actually make your credit score better for other financial establishments.
Who Can Take a Payday Loan?
To qualify for a pay day loan, whether online or onsite one, you only need to meet three simple criteria:
- Be a US citizen
- Be of legal (18+ years) age
- Have proof of employment and income
Note that the sum you earn a month is not that important — after all, the borrowed amounts are usually quite small. Also, if you are applying for lending online, you’ll need a bank account for the transfer to come in.
Interest Rates on Payday Advance Online
Most of the time, people are scared of applying for payday loans because they think that interest rates are just too high. Mathematically speaking, they are indeed higher than average. If, however, you consider the actual sums involved, the amount of interest will no longer be intimidating. For example, when you borrow $500 for a couple of weeks, you’ll be expected to prepay around $550-565.
Who Usually Applies for Payday Advance Loans?
Literally anyone can apply, and literally anyone does. Here are just some social groups who make use of a payday loan now and then:
- Retired people looking for a cash advance before their monthly transfer
- Students and people with lower than the average salary
- Practically anyone who needs cash in case of emergency
When Can Lenders Decline Your Payday Loans Online Application?
Whenever someone’s application is denied, people tend to blame their previous credit history. However, in case of payday lending, it is hardly ever the reason — most of the time, it’s either a mistake in the application form or lack of employment proof.
Payday Loans Bad Credit is NO Reason for Denial
Many borrowers wonder how can a bad credit score not interfere with your application process. In the case of payday credits, the answer is very simple — lenders usually offer no more than $500, so no credit check is performed for such small sums.
Checking Your Request Data For Mistakes Is A Must
The creditors do have to verify your identity to make sure you are a real person who can pay back. So, a single typo in a name or social security number can make a difference between a successful application and a denied one.
Providing Proof Of Employment: Why It’s Really Necessary?
Even though payday lending does not require you to be rich (obviously), you still need at least some proof of income or employment. This practice has two ground reasons: securing the lenders who can get their money back; and securing the borrowers to make sure they can repay instead of getting in even more debt.
What Are The Benefits Of Pay Day Loans?
We already mentioned some obvious, pretty much self-explanatory benefits of receiving payday loans online — those are quicker, easier, and safer for your credit history than getting an advance from a bank. However, payday loans have another, less obvious benefit — they are simply some of the most beneficial ways to receive a minor sum of money you need it urgently. They are simply more affordable than most other means of borrowing small sums of money, such as the good old-fashioned credit cards, cheque overdraft fees, or long-term installment loans.
Online Payday Loan Vs. Debts on Major Credit Cards
Credit card debts tend to accumulate over time, and even though the interest rates do not change, the amount of debt does. This system is nothing but a vicious circle, designed to put people in ever more debt and make the bankers ever richer. In contrast to these, debts on most payday advances do not accumulate and do not put you in more financial trouble.
Installment Loans Vs. Payday Credits
Installment loans are long-term credits that deal with large sums. Student lending is one of the most common examples, and we all know it takes years of employment to repay such a debt. Any delays in payment may negatively influence your bank and borrowing history, preventing young (and still low-paid) professionals from borrowing minor sums of money on urgent, unplanned expenses. Quick cash credits, on the other hand, are designed to help people facing a financial emergency.
Quick Credits Vs. Overdraft Fees
Just like credit cards that tend to accumulate debt, putting people in more finial trouble, overdraft fees stack up over time. This, once again, affects a person’s credit score, preventing them from getting more money when they need it most.
How Do I Get Started
If you took time reading all the above, the chances are — you need cash now. Luckily, we are always here to offer a helping hand to any person in need. Our online payday loans are some of the quickest, easiest, safest means to get the advance you need so urgently. And it only takes a couple of simple steps!
Apply for Safe Online Payday Loans With Us
We understand that you’re facing some financial challenges already, so we will not be calling your bank to put you in even more trouble. Our managers need only your name, proof of employment, and a social security number. Providing this info should not take more than five minutes of your time.
Get approved for a Pay Day Loan within a day
In some cases, it might take up to 24 hours to have your advance approved, but usually, it happens way sooner than that. As already mentioned, we do understand that you need money now and are quite happy to oblige. Usually, it takes less than 24 hours to go through the entire process — from filling in an application form to getting your advance to a bank account.
Repay in time & see your credit history improved!
One of the reasons we ask for employment proof is to make sure you’re not putting yourself in more financial trouble. If banks don’t approve your lending requests because of a bad credit score, we will. And, when you repay in time, you will actually have proof that you’re not such a risky borrower as some institutions think.
More than that, our managers review all applications manually and can offer a couple of useful tips on how to improve your financial situation. So, you can always count on our expert advice.