It’s normal to find yourself needing extra cash than your income allows, especially in the middle or towards the end of the month. Unexpected vehicle repairs, medical emergencies, home supplies, and other such expenses could drive you to seek some additional money. If you don’t have some money saved up, figuring out where to get the cash you need can be a real pickle.
Some of the options available to you include asking a friend or family member for the cash, starting a side hustle, and picking up some extra shifts at work. But, even these are not feasible options sometimes because, for example, a person with a very strenuous job may be too exhausted to take up a second or a third. For situations like these, a quick cash or payday loan is the best alternative.
What Is a Payday Loan?
A payday loan is a short-term, high-interest loan designed to tide you until your next payday. Depending on the laws in your state, you could get the loan online or by visiting the payday lenders in a storefront. States set the limits for payday loans, and many states cap them at 500 dollars. The loan amount is given to you in cash, by check, loaded to your prepaid credit card, or maybe deposited into your bank account.
You ought to pay back the loan as a single payment on your next payday or when you get income from another source, such as your Social Security or pension. Typically, you have 2-4 weeks from the day of issuance to give the money back.
Paying Back a Payday Loan
You should pay back the loan in the form of a post-dated check containing the entire loan amount, interest earned, and related fees. You could also give authorization to the lender to debit the money electronically from your bank account, prepaid card account, or credit union account. If you fail to pay the loan by the agreed due date, the lender has the mandate to cash the check or withdraw money from your account.
But, in some states, the law allows the lenders to ‘renew’ or ‘rollover’ the loan with some fees in exchange for an extended due date. In other states, the consumers do not have to pay the entire loan in a lump sum. Instead, the lenders are asked to structure the loan to allow repayment in installments over a long period.
The Price of a Payday Loan
Many states have set the maximum loan fees for payday loans to range between $10 and $30 per every $100 borrowed. The fees are typically higher than loans on credit cards and other bank loans, which is why states have set caps on the loan amounts, the interest charged, and the fees involved.
Still, in some states, payday lending is not available because payday lenders refuse to conduct business going by the terms set by the government. So, before you consider applying for a payday loan, check to see whether the loans are available in your state, and if they are, check the provisions of the law in your state.
Can You Get a Payday Loan Without a Credit Check?
Yes, if you find a lender specializing in loans that are not dependent on your credit score. For example, although Slick Cash Loan offers an array of traditional credit types, its payday loans are not reliant on your credit history. But, for a deal like it, the lenders expect you to have sound financial management skills and show a capacity to pay the loan without neglecting your other expenses.
Another critical condition is for you to show your readiness to pay back the loan. For example, you could offer a copy of your last paycheck and indicate how you would use your next paycheck to pay back the loan without ignoring your other obligations. Make the specific purpose of the loan clear too.
If the lenders are happy with what you present, there’s a good chance they will approve you for the loan, and you won’t have to go through a credit check.
What Are the Requirements for a Payday Loan?
The terms for a payday loan are not stiff. At a minimum, you must be an adult of 18 years or older with a stable income and with documents to prove it. You must also have a bank account.
Unfortunately, persons on military service or those dependent on other people are not eligible for the loan.
Ensure that the information you provide is truthful, and don’t embroider the facts. Before the lending company gives the money to you, they must verify all the details you provide. But, don’t let a bad credit history deter you; so long as you prove your income, you still stand a chance for approval.
The Application Process for Payday Loans
The application process is straightforward and quick; you could wonder whether the company follows any due process before granting the loan. But, the lending company is cautious about its issuance of loans. Therefore, it must verify the legitimacy of the information you present and assess your reliability. Then, in 5-15 minutes, you will know the company’s decision to deny or grant you the credit.
Summary of the Payday Loans Process
From start to finish, here’s a summary of the steps to take from your application to repayment of the loan:
- Choose the loan company that is most suitable for you.
- Go to the company’s website.
- Click on the loan service you want and fill the small application form that pops up. Ensure all the information you give is truthful to avoid any future problems with the company. Also, have with you the necessary documents, which will include proof of your income.
- The company receives your application and verifies your information.
- If approved, the company invites you to sign a loan contract with them. (This is sent to your email).
- After returning the signed contract, the lending company then gives you the money you are seeking. ”[
- It’s now your responsibility to repay the credit within the stipulated time.
Could a Lending Company Deny Your Payday Loan Application?
Yes, the company can turn down your application. If you don’t receive an approval notification on your mobile phone or email, it likely was. Log in to the account you created to confirm it.
But, typically, applications for persons older than 30 with stable employment and above-average earnings are always approved. As a result, regular customers also receive payday loans quickly and have the maximum loan amount available.
The main reason for the loan denial is that you did not meet the company’s requirements. It could be that you have not repaid a previous debt or that your income is not stable.
Choosing the Right Lender for Your Online Payday Loan
All payday lenders advertise their services, but not all of them live up to the values they profess. So, you’re going to have to dig a little deeper to find a trustworthy lender that is best suited for you. The following factors may help you choose the right lending platform:
The Company’s Reputation
A key factor to consider is the company’s reputation in its credit disbursement and treatment of customers. So, find as many customer reviews as possible, both positive and negative. The insight you will get from them will help you know whether that lender values its customers.
Important also is to find out any information that could let you in on how the company goes about its job. Do a thorough internet search and see if there are any lawsuits filed against the company. A Better Business Bureau (BBB) rating should also help you know how the company handles suggestions and complaints raised against it.
Transparency is also a fundamental element to consider when choosing your payday loan lender. It refers to the disclosure of how the lender manages your information and the openness of its credit terms. The company should be upfront about its service cost and the related taxes without any hidden charges. You should be able to calculate what it will take to get and repay the credit even before the approval.
If interest rates and penalties are charged for late payment, these terms should also be clear. In that way, you will have complete information about what you are getting and the associated risks if you fail to repay your loan. If all these details are clear on your chosen company’s site, you can proceed confidently.
The Terms and Conditions
Before you source for a loan, ensure that you understand the terms and conditions thoroughly. If you sign a contract with the company, you must abide by its stipulations. The terms often contain critical details such as the loan tenure, interest rates, loan amounts, due dates, processing fees, and agreement closure fees. If you fail to read each of these conditions satisfactorily, you might end up signing up for a loan whose terms do not suit you.
If you find a payday loan company but its stipulations are unfavorable to you, do not settle. There are many companies in the market to choose from, and if you look carefully, you will find one that suits your need.
The Time It Takes To Get the Money
A payday loan is an emergency loan, meaning that the lenders should not delay. Failure to provide the loan negates the purpose of seeking it in the first place. But, as you maneuver the credit industry, you will realize that not all payday companies process the loan fast.
So, before you sign the contract, ensure that the credit company can offer instant loans. It should not take you longer than 24 hours to access the money. Slick Cash Loan is one of the companies that assuredly offers instant loans.
The Lowest and Highest Possible Loan Amounts
Payday loan lenders have minimum and maximum limits for their customers. You get to choose your desired amount from this range. Typically, the minimum loan amount is $200, while the maximum amount is $500.
When it comes to seeking a loan, endeavor to owe as little as possible. Even if you qualify for the maximum $500, don’t take it if you need less than that amount. Every dollar you borrow earns an interest that makes a big difference in the long run. So, only borrow what you need to avoid paying too much money in the long run.
Again, the maximum amount a loaning company can give matters. If the payday loan limit cannot meet your need, don’t borrow from it and seek the deficit from another company. It’s better to consolidate your debt to avoid additional processing fees, new interests, and other inconveniencing costs.
Payday loans are fast and straightforward to acquire credit because the lending companies process the applications quickly, and some do not even consider your credit history. With an entirely online process, you get the money you need without ever needing to meet the lender in person. Once you verify the legitimacy of the payday loan company and understand its terms and conditions, you can sign up for the loan and get it immediately.