FAQ About Payday Loans

Posted on: 30 August 2016

Did a large bill leave you in a financial bind until your next payday? You have the option of visiting a payday loan company and applying for the money that you need. Qualifying for the loan is not a long process, as only a minimal amount of information will be needed. In this article, you will learn find answers to a few questions that you might have in mind about payday loans.

Does the Application Process Involve a Long Wait?

You will not have to wait long for an answer after filling out a payday loan application, as some lenders process applications within hours. The loan company will only need to verify a few things on the application before making a decision. For instance, you must be able to prove that you receive a regular paycheck via providing statements. Your employer will also be contacted so your job history can be verified. You will likely need a bank account so the loan company can automatically withdraw your payment on the due date.

What Kind of Credit Is Needed for a Payday Loan?

Your credit may not be important when applying for a payday loan. As long as the lender knows that you are able to pay the money back, your application has a chance of approval. It is also possible that your credit score will not be checked at all.

What Kind of Collateral Will Be Needed?

You don't have to worry about having any collateral available to get approved for a payday loan. Rather than the lenders depending on valuable items if you don't pay, they depend on automatic bank-account withdrawals. You might need to have a job in which your paychecks are direct deposited into your bank account.

What Happens If No Payment Is Made?

It will be up to the specific lender that you choose as to what will happen if there are insufficient funds in your bank account on the due date. There are some payday loan companies that will keep trying to deduct the money multiple times before taking further action. After some time has passed, you might end up in a small-claims lawsuit. Late fees from the lender can accumulate if you fall behind on paying your loan off, and your bank might charge insufficient funds fees. Get in touch with a payday loan company and find out how much money you are qualified for.

Check it out by searching for specific vendors online to see what interest rates and loan amounts you qualify for.