Some Frequently Asked Questions on Payday Loans That Will Help in Better Understanding
A month riddled with an emergency that made your salary seem just short of being able to meet your other necessities of life is a phenomenon that all of us have faced at some point of time. This is when we look for options to fill up that gap just for a short time until we get the next month’s salary. A payday loan will come in handy in such situations.
What Are Payday loans?
It is an extremely easy and convenient way by which most of us can secure a loan really fast. Even people, who have a bad credit record and have been denied credit cards, can use this option. These are short-term loans and should ideally be of a smaller value that can be easily paid off with your next month’s salary. You can also carry it forward by paying the minimum amount due, in which case you will have to keep paying the interest until you repay the entire loan.
Payday loan is gradually gaining a lot of popularity. In order to make it more convenient, many companies are even offering online services for these loans. So, now you don’t even have to leave the comfort of your home to apply for a loan and can just log in to the site and apply.
Some Pointers About These Loans: To give a better understanding to all those of you, who would be interested in knowing more about these loans, here is a list of some frequently asked questions and their answers:
- How must is the application fee?
Nothing, you don’t have to pay anything to apply.
- How is the amount decided?
These are usually short term, small amount loans, which can be from $100 to $1000. This amount can be sanctioned depending on your income and state laws.
- What are the approval criteria to apply for the loan? :
These loans are easily approved, if you have the following:
- A citizenship for United States of America
- You are at least 21 years old. In Alabama only 19 years is the limit.
- Have a cell phone or landline, where you can be contacted along with a work phone.
- Have a valid email address.
- Have at least a 90-day-old active account.
- If you are a resident of Indiana, then the proof of your Social Security Number will also be needed.
- Is it safe to apply online for a loan?
Yes, it is absolutely safe and secure to apply for a payday loan online. You must however need to ensure that you are taking the loan from a lender of good repute.
- How is the money given?
It will get automatically credited to your bank account.
- Will the loan be approved if I have a bad credit history?
Payday loans are even approved for bad credit. That is the beauty of these loans.
- How long does it take an online loan?
Conditional approval is given within minutes of filling up the details. You will then get a call from a representative to verify the details and if satisfied the amount will get transferred in the next 1-2 working day.
- What are the interest rates?
It differs from lender to lender. Do your research to find out the best rate for you.
It is important to read all documents carefully before signing up for the loan. If you have any problem understanding any of the finer points, be sure to get them clarified before signing on the dotted line.