How To Get A Payday Advance Loan

In the past, banks were reluctant to issue loans for less than $2,000. This is because they assumed that people who needed money for everyday expenses were not financially stable. After all, if they cannot afford to pay their bills, how can they afford to pay back a loan? The reality is that life is not always that simple. People are sometimes faced with unexpected expenses that they cannot afford at the time. Thankfully, finance companies understood this and created the payday loan product.

What is a Payday Loan?

A payday loan is essentially a wage advance. People borrow small amounts of money to pay for unexpected expenses like car repairs and funeral costs. These loans have high interest rates and need to be paid back within a month. The beauty of a payday loan is that borrowers can get money in their account within a few hours of applying for the loan.

How to Get a Payday Advance

The first step of getting a payday advance is finding a lender. Previously payday lenders used to have very high interest rates. In fact, most of them were over 20%. While many lenders still do this, some offer competitive rates. Those who take the time to shop around may get a lower interest rate than they initially anticipated.

Once a borrower has chosen a lender, he or she will need to go to their website and fill in an online application. The application form should be quick and easy to complete. All most payday loan lenders need to know is whether the applicant is employed, over the age of 18 or currently bankrupt. A large majority of applications will be approved. However, there are some people that payday loan lenders will not do business with. A few reasons why a cash advance may be declined are listed below.

  • Applicants under the age of 18 will be declined as they are not old enough to legally sign a financial contract.
  • Unemployed people will be declined as they do not have the income to pay the loan back.
  • Undischarged bankrupts are unable to get a loan as it is against the law.
  • People without a bank account may be declined as the lender will have nowhere to deposit the funds.

When the loan is approved, the borrower will be asked to send in a copy of their payslip and identification. Lenders use these documents to confirm whether or not everything on the application is true and correct. The longer that a borrower takes to send these documents in, the longer it will take to get their money. Those who scan these documents and send them via email may be able to get their funds within a few hours.

After the loan has been approved and paid out, the borrower will need to set up their repayments. It is important that borrowers make full payments on time. Failing to do so could result in heavy fines or legal action being taken against the borrower.

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