Payday Loans: A Way To Pay For Urgent Expenses
Tired of asking your friends and relatives for cash advances, even though you know for a fact that you will repay the sum you need in full? More importantly, that repaying will not take you long because you only need a couple of weeks before the monthly check comes in? Well, we’ve all been there, and young professionals who do not earn that much money yet, often experience this annoying problem. Quite often, something completely unplanned comes up, and you only need a hundred or two… but you don’t have it. Situations like this will make anyone feel like a failure, and asking friends for money — again — is simply embarrassing. Luckily, to every problem, there is a solution, and payday loans are designed specifically to help with the above scenario.
If you’ve never heard about pay day loans before, the explanation is pretty much in the name itself. Those are quick and simple types of crediting that do not involve any significant sums, collateral, or long-term repayment schedules. Basically, you just borrow a few hundred bucks — usually no more than five — and rerun the whole sum when you get your monthly/weekly salary. The logic is very simple and is pretty much the same as if you got an advance from a friend or a relative.
On the other hand, a payday loan is still a credit, and a person who lends it to you will expect some interest on top of the initial amount. This is quite expectable, but since the sum you need is not large, the interest will not be high either. And then again — if you’re a reasonable, conscious person, you do buy your friend a beer or a box of candy when you repay the debt, right? Well, a pretty much the same logic, with similar sums, applies here. But don’t take our word for it — read on to find out more about these lending types, people who can make use of them, and the benefits of doing so.
Are Online Payday Loans Safe?
We take the Internet with a little bit of caution, especially when money is concerned. So, whenever any site offers us to receive an online payday loan after submitting some basic personal info, we often assume the worst. It seems fishy to offer personal and financial information to a third party — especially if the whole process happens online. Well, get ready to cast your doubts aside! Most lending sites are totally reliable, and you just have to follow the basic security guidelines.
Payday Loans Online: What Info is Safe to Submit?
The fact that you are submitting a request on the Internet does not change the fact that you are asking for some credit — not a virtual, but a very physical one. So, all online payday loans, along with the individuals and entities that offer them, will need at least some basic info about the borrower. It’s not much, and, usually, it’s safe to submit. Standard graphs include:
- Full name and proof of identity: that’s not such a big secret, so no reason to worry about security. Besides, no one can do anything with a web copy of your ID, so once again — no justifiable ground to worry. Also, creditors have to make sure that you are of legal age to make any financial decisions.
- Contact phone number: managers may have questions about your application, so once again — no big secret in that.
- Proof of employment: because to get approved, you’ll need at least some minimal source of income
- Bank account: that’s where your borrowed money will go once your request is approved. Since no one can just steal money from your account (even when they know the credentials), you can safely submit this info, too.
However, you should remember never to disclose other details, such as:
- Your legal address because it has no connection to the application.
- Your personal data, like passwords, pet names, mother’s maiden last name, etc. — because things like these often serve as additional security passwords in your bank.
How long does it take to get a Payday Loan Online?
Not long. The actual process is very simple and is usually wrapped up in less than 24 hours — from submitting a request to getting a notification from your bank that the money has arrived. As for the actual steps, they are overwhelmingly simple:
Choose a reliable payday loans online lender after checking the info they provide on the site, the application graphs they ask you to fill, and — if you have the time — by reading their customer feedback.
Submitting a payday loan online form, making sure all graphs are correct.
Waiting until your request is reviewed and approved. As already mentioned, that hardly ever takes long — usually, a day or even a few hours.
Receiving your requested pay day loan amount to your bank.
Can Anyone Receive a Payday Loan?
Most people surely can. However, it’s lending, not to mention, a financial contract of sorts, so there are a couple of basic requirements for a pay day loan applicant. To get approved, one will have to: be:
- Be an 18+ years old US citizen
- Provide proof of income or employment
- Have a valid bank account or a card
In some cases, you can also apply for an actual cash advance and receive the sum you need in one of the company offices. Still, the majority of today’s transfers are done online because it’s way quicker and more convenient.
What Fees Are Associated with a Payday Advance Online?
We already touched upon the interest rates, so let’s dig into more details. You may have heard that payday loans have very high fees, but they only seem high if your transfer those amounts to annual interest rates. If you do, these rates may reach 1000%, which is an enormous figure, but! You will not actually be paying any annual rates, because it’s short-term lending, and you’ll forget all about it in a couple of weeks — after covering the debt.
What you will be paying is a $10-15 fee on every hundred dollars you borrow. And, given that the standard limit is just $500, it’s not such a huge sum to worry about when you need the money quickly. It’s definitely a sum worth paying if you do not want to trouble your friends and relatives.
What Happens If You Cannot Repay Payday Advance Loans In Time?
All in all, any person with a stable income should have no problem repaying a payday loan in time. Especially so if you consider your finances carefully and are only stuck on money because of some emergency, like a minor car accident or some urgent medical expense.
Still, if you cannot return the sum you owe in time, the creditors will usually offer you two possible options:
- Rollover: this means paying the initial sum you borrowed, without the interest. In this case, you’ll pay interest later. However, loaning the remaining interest is still a credit, so you will have another round of interest on your original interest. Simply put, you will owe $20 of fees instead of the original $10.
- Installment: some companies may offer you to transfer your short-term loan to a long-term one. So, you will not be expected to pay the amount you owe in one payment — there can be more planned transactions. This solution is a bit better because the interest rates remain the same.
Still, we strongly suggest that you consider if you can repay on time. If you cannot, there are other alternatives — the above installment plan is a good example.
Are Payday Loans Online Applicants Ever Rejected?
Hardly ever, but accidents do happen. Usually, a lending company will deny the request if the prospective borrower cannot provide proof of income, identity, or having a valid bank account. Note that even if you have all the above, a typo in the request form can still disrupt your application process.
Payday Loans Bad Credit: Can it Disrupt My Application?
No. The primary feature of all payday loans is that they are short-term and do not offer you any huge sums, to begin with. So, most companies do not bother checking your previous borrowing history, and absolutely none of them call your bank to have some proof that you’ll pay. In fact, many private entrepreneurs understand that some people contact them because traditional banks won’t have them as borrowers.
More Perks from Pay Day Loans Companies
No matter if you are requesting payday loans online or are looking for good old-fashioned offices, the logic behind these types of crediting remains more or less unchanged. Here are just some of the benefits of going with this particular credit type.
100% Confidentiality of an Online Payday Loan
No credit check is required for this type of borrowing, so no one will be digging into your spending habits, past transactions, or asking for credentials. No third party is involved in the process, so the transaction remains highly confidential.
More Favorable Repayment Conditions than on Installment Loans
Unlike long-term borrowing that often takes years to repay, payday is a very quick credit. No one is going to lend you more money than you can return on time, so you will have a chance to forget about the whole procedure in a few weeks.
Positive Effect on a Spending History
If you repay the lending in time, you may choose to share this info with your bank. This may have a positive effect on your credit statement. If your score was low, here is the chance to improve it. Why not take it to settle your past debts?
How We Can Help Get the Money You Need
If you believe that online payday loans can solve some of your pressing problems, it’s great that you stumbled upon our site. Aside from the standard benefits listed above, our friendly team can offer you a couple of other perks. Here is why you should choose us as your financial helper.
Free Consultations on Safe Online Payday Loans Conditions
We analyze our customer’s requests and do our best to offer them the most favorable repayment conditions. If you’re not sure which lending type works best for you, reach out to our managers. They will try to offer the most favorable plans for you.
Quick Pay Day Loan Approval
We hardly ever require 24 hours to consider and approve your application. Most of the time, it happens sooner than that. Even on days off, we have a manager ready for you.
Full Anonymity of the Transaction
Unless you willingly share any info about borrowing money from us, no one ever needs to know. We’ll gladly help you settle your previous debts without ever letting anyone know about our collaboration.