Recently, the payday loan industry has grown significantly in the USA. With so many living paycheck to paycheck, unpredictable situations like as a medical or car repair bill can be extremely difficult to pay. Payday loans are intended for these exact money scenarios when there are no other options available. These are some of the most commonly asked questions when it comes to payday loans.
What exactly are payday loans?
Payday loans are short term loans intended for those situations when cash is needed fast. Payday loans will provide you with money for a time period of two weeks to one month. You are required to pay back the loan amount along with interest and fees on your next paycheck date. Payday loans are often called cash advance loans or payday advance loans.
What interest rates do payday loans charge?
Keep in mind that all payday loans come with a high interest rate. Lenders will usually charge somewhere between $15 and $30 for each $100 that you borrow. This will vary depending on the payday loan company, your qualifications, and the total loan amount.
How much can payday loans give me?
Payday loans can provide you with anywhere from $100 to $1500. Again, this amount will depend on the lender and your own qualifications. Several lenders will offer loans of over 1500.
How does the process work?
Payday loan applications can be submitted in person at a payday loan center, on the phone, or online. The payday loan company will require you to complete a loan application which will ask for only basic information including your name, address, job information, and monthly income. Most lenders will not need a credit check. After you submit your application, you will usually receive a decision that very day. Assuming your loan gets, the funds will be directly deposited into your bank account within 24 hours. The payday loan company will than debit the loan amount from your account on the date in which it is due.
How long does it take?
Luckily, the whole payday loan process is extremely fast. Most lenders can finish the verification process and deposit the money directly into your account in less than 24 hours. In some cases, payday loans may be given to you as quickly as one hour from when the loan was submitted. These types of payday loans are most commonly referred to as 1 hour payday loans.
What are the qualifications for payday loans?
Different lenders have their own criteria for payday loans, but the standard criteria to be eligible for payday loans are as follows:
* You need to be a citizen of the United States * You need to be at least 18 years old * You need to be employed with a monthly income of over $1000 * You need to have a checking account
What if I can't pay back my loan when it is due?
If you aren't able to pay back the loan amount when it comes due, you will be able to get an extension on your loan's due date. Remember that that you will not only have to pay an extra fee for the loan extension, but you will also owe additional interest for the added time.