What is a payday loan?
A payday loan is a kind of a loan used to cover short term expenses. The funds are issued to your bank card within 24 business hours and paid back up the next paycheck.
How to qualify for a payday loan?
There are several requirements to qualify for a same day personal loan:
- be at least 18 years old;
- be a U.S. citizen;
- be employed and have a reliable source of income;
- have a checking account;
- have a valid email address and phone number.
For how long can a payday loan be issued?
Traditional short-term loans are usually issued for up to 30 days. A number of companies offer long-term loans for 6 months or a year. Rarely enough, but still there are installment loans even up to 2 years. Such offers are usually offered only to regular and reliable customers.
What documents are required to apply for a loan?
In any case, it is necessary to have an ID. Some lenders may ask for a second document: military ID (if any), driver’s license, TIN. Additionally, you can provide any certificates and documents confirming your creditworthiness. But this is usually not necessary. The more documents there are, the more favorable the offered terms can be.
How to get approved with bad credit and delays?
You don’t have to go to all the companies at once. There are three possible solutions: correcting the credit history with the submission of a corresponding application to the credit bureaus, improving the payday loan and correcting it with two credit cards from partner banks. At the same time, it is advisable to cover all current delays – this will increase the likelihood of approval.
Will the application be approved without formal employment?
Yes, it will. Some companies provide payday loans for officially unemployed citizens without refusal. Among them there are those who issue money only by a driver’s license and phone. Sometimes a collateral may be required from such a borrower – then the available amount and the term of the loan will increase, and the interest rate will decrease.
What documents are required when applying for a student loan?
For a payday loan, only an ID is required from the list of documents. You can additionally take a record book to confirm your student status. If you have extra income, you can prepare certificates confirming it. This will increase the credibility of the lender willing to issue student loans.
Why is the interest rate indicated per day, and not in annual interest?
The loan is usually issued for a period of less than one month. Therefore, it is more convenient to calculate it using the daily interest rate. Bank loans are issued for a longer period – up to 3-5 years, so interest on them is calculated at an annual rate.
How quickly is the money deposited?
The approved loan amount is transferred from a few minutes to several days, depending on the bank service. The speed of funds’ depositing depends on the time of the application processing, the method of transfer – a card, account, cash or e-wallet and some other data. The presence of mistakes in documents and the need for additional checks can increase the transfer time.
What are the ways you can pay off the debt?
Usually, clients of payday lending companies are offered a large number of payment methods, for example: by bank card, bank transfer, e-wallets, money transfers, through payment terminals. The speed of money transfer depends on the chosen method and the amount of the transfer fee.
Can the loan be extended?
Yes, it can. Many companies allow you to extend the term under the same conditions by 1-30 days. Among them there are organizations that provide extension without commissions. But in this way, the loan can be extended only if the client can give profound reasons because of which he cannot repay the debt on time.
How many times can a loan be renewed?
The number of renewals depends on the terms of the particular organization. Most often, the number of renewals does not exceed several ones. Less often, it may not be limited. It all depends on the company you are working with and the state you live in.
What is the payday loan amount if I have no credit history?
Usually, the first loan for a client without a credit score is issued for an amount of up to $1,000 as the scredit score is not the only aspect assessed to qualify for cash advance.
I was overdue at the bank, can I apply for a payday loan?
Covered delays are not grounds for refusal. But with open delays, litigation or bankruptcy, the application is likely to be rejected. To increase the chance of approval, provide the lender with as much detailed information as possible about yourself, sources of income, car and other property.
How is a credit rating different from a credit history?
A credit rating is a rough score that reflects the likelihood of an application being approved or denied. It is calculated by specialized services based on the credit history and other factors affecting the decision on the application. The higher this score, the higher the likelihood that the lender will approve the application and provide more favorable terms. The credit history contains only information about the current and repaid debts – you will have to determine the final decision based on these data yourself.