Tips & Advice
How often can I apply for a payday loan?
You can apply for payday loans whenever you need them. However, since this type of debt comes with very steep interest rates, it's best to limit payday loans to occasional use. If you find yourself turning to payday loans every month, it may be a good idea to seek professional credit counseling.
What is a fax-less payday loan?
A fax-less payday loan is one that is completed online. When payday loans first came on the scene, borrowers were required to submit the necessary paperwork either by standing in line at a loan store or by submitting these documents via fax. With a fax-less payday loan, you simply complete an online form to find out if you've been approved for a loan. If your loan application is successful, the money you've borrowed is automatically deposited into your bank account.
How does a payday loan work?
With a payday loan, a borrower gets a small loan that becomes due within 7 to 35 days. First-time applicants can typically borrow $200-$600. With each successful loan payoff, the amount you are eligible to borrow increases, and it usually tops out at about $1,000, depending on your salary.
You need to have regular income to qualify for a payday loan, and you also need to have a working phone number. Most lenders also require you to have an active checking account, but some will lend you money if you have just a savings account. In many cases, you can qualify for a payday loan even if you have poor credit, and many lenders issue loans without running credit checks on borrowers.
How long do I have to pay back a payday loan?
A payday loan is usually due on the date you receive your first paycheck after taking out the loan. However, some lenders require that loans be repaid within 14 days, even if you get paid only once a month. Other lenders may allow you up to 35 days to repay the loan.
What happens if I can't pay back a payday loan?
If you can't pay back a payday loan, the lender might automatically withdraw the funds from your bank account. If there is insufficient money in your account to cover the charge, this could trigger bank fees. If the lender is unable to recover the amount due, your loan might be transferred to an outside collections agency, and this transfer could take place in as little as 30 days. The collections agency could sue you for the amount due, and this could eventually result in property liens or wage garnishment.
What is a no-credit-check payday loan?
A no-credit-check payday loan is a small short-term loan in which the lender issues a loan to the borrower without running a credit check. These loans can be useful for borrowers with bad credit who urgently need a small amount of cash. These loans come with high interest rates, and they are among the most expensive types of debt on the market.
How long does it take to get approved for a payday loan?
Getting approved for a payday loan can take anywhere from 24 hours to a couple of minutes, and you can apply for a loan either at a loan store or online. It's generally quicker to apply in person, and you can hasten the process by making sure you have all the required documentation. To get approved, you'll typically need to provide proof that you have regular income and an active checking account. You'll also need to provide your phone number.
Does a payday loan require a check?
With some lenders, borrowers are required to submit a post-dated personal check to obtain a payday loan. This check usually represents the total loan amount plus interest and fees, and it will be deposited by the lender when the loan becomes due. Not all lenders require a check to qualify you for a payday loan. Some lenders will automatically debit your bank account once the loan becomes due.
How does someone qualify for a payday loan?
To qualify for a payday loan, most states require you to be 18 or older. You also need to have a valid phone number, and you need to be able to provide proof of employment. An active checking account is usually required if you want to qualify for a payday loan, but some lenders will issue loans if you can provide proof of a savings account. Finally, some lenders require a social security number.
A payday loan is one that is typically repaid with the borrower's next paycheck. These types of loans are also known as cash advances, and they aren't given out by banks, but instead by loan stores. These loans are among the most expensive types of debt, and they come with interest rates that are much steeper than those offered with typical bank loans. Once you've been approved, cash is usually deposited into your account within 24 hours.