The Application Process & Requirements
Interested in learning about the payday loan application process? Theres actually not much to it. The requirements and procedures involved in the payday application process are very simple and clear-cut compared to others type of consumer loans. Payday cash advance lenders generally ask a few basic questions and require a small list of conditions to be met before an applicant can be approved for a payday advance loan. After the lender authorizes your payday application, the money is usually wired or deposited directly into your checking account on the same day or within 24 hours of approval. Rapid delivery of cash is definitely one benefit of this type of loan. Although payday cash advance lenders may have slightly different criteria and procedures, lenders generally ask for the same documents and steps to be taken to be approved for a quick payday loan.
For starters, applicants need to provide lenders with documents that ascertain ones name, current address, home phone number, and place of employment when applying for a payday loan. Most lenders require potential borrowers to be 18 years of age or older, have had a steady job for the last 60 to 90 days, and be a resident or citizen of the United States. Additionally, lenders usually require borrowers to have a checking account and have a monthly income within the range of $1000 to $1500. In terms of documentation, applicants usually just need to provide a recent paycheck slip, a recent bank statement, and a federal or state issued identification card to be verified for a payday loan. Most lenders do not require credit checks to be done during the application process; therefore having bad credit will not prevent you from being approved. Once again, these conditions may differ slightly depending on the lender you choose to work with and the state you reside in, but lenders typically do not make the process much more complex than this. Nowadays, payday cash advance lenders have taken convenience to another level by using online automation to allow borrowers to apply for online payday loans. This makes the application process much easier for borrowers and your privacy is still guaranteed through high-tech encryption technology used on the payday loan website. You can tell if your browser is secure by looking at the URL address on the application form website to make sure it begins with https:// and not http://. Another convenience feature offered by many payday lenders is the use of no fax payday loans that do not require applicants to fax in personal documents. With no fax or faxless payday loans, lenders simply access your information on the internet to approve you for a payday loan. This means less paperwork and less hassle for you!
Although payday loans should only be used on very rare and urgent occasions, there are a few benefits provided to return customers. Customers that use payday loans on a regular basis are often given discounted fees on future loans, presuming that they have fulfilled all previous payments and are in good standing with the lender. Borrowers can basically build credit with a specific lender making future application procedures much faster and future fees much lower. Payday lenders are typically willing to give first-time borrowers a loan for about $100 to $300 at a time. However, as a customer establishes good standing with a lender, the lender is usually willing to increase the amount of the loan.
Payday lender fees cause payday loans to be one of the most expensive methods of borrowing. A $100 payday loan can cost as much as $30 in lender fees, which is why we recommend looking into other sources of funding before resorting to payday loans. Costly lender fees also make it harder for borrowers to pay off the loan at the end of the loan period. If a borrower defaults on the loan, additional fees are added on to the overall loan amount. This adds insult to injury causing further financial hardship for the payday loan borrower to endure. Some lenders do allow borrowers to rollover or extend their payday loan period but this is not always the best solution as it also involves additional fees. Payday loan rollovers should only be an option for borrowers who are certain they will have the financial resources to cover all costs at the end of the loan period.