Facts About Payday Advances
Payday advance commonly known as payday loans, instant cash, etc. It is a short-term cash loan that is widely preferred by many individuals because it is quite fast and easy to get one.
Unlike traditional banks that require their clients to submit tons of documents, not to mention the high possibility that your application may be rejected if you have bad credit, online payday loans are not too strict.
However, it does not mean that you can be 100% sure that your online loan application will be approved. Payday lenders still acquire information about the borrower. They also determine the loan amount.
Know More About Payday Loans
Before you decide to get a payday loan, it is very important that you have information pertaining to how the lending companies operate and conduct their businesses.
If you are planning to get a loan in California, it helps that you are at least knowledgeable of the California Deferred Deposit Transaction Law.
Nowadays, there are many lending companies offering instant cash. Unfortunately, not all of them are licensed under the California Deferred Deposit Transaction Law and California Finance Lenders Law.
Is this very important? Yes! Payday loans have higher interest rates compared to the usual loans. There are some cases where lending companies tend to charge more than what is legally allowed.
What Are the Requirements to Get a Payday Loan?
You cannot just get an instant cash without complying with the requirements. For you to be approved, you need to have a bank account in good standing as well as a steady income. You will have to provide your identification. Most payday lenders do not conduct thorough or rigid background or credit checks. They are not too strict when it comes evaluation whether a borrower can repay the loan.
How is it then possible for them to grant loans? With a payday loan, it is more on the ability of the lender to collect the payment compared to the ability of the borrower to pay the loan.
The specific requirements before you can get a payday loan varies from one lending company to another. But here are some of the general requirements that you have to follow:
- You have to submit an application form that contains the relevant details asked from you.
- You are asked to provide your social security number.
- Proof of current bank account and proof of employment
Is it Easy to Apply for a Payday Loan?
One of the main reasons why many people prefer payday loan is that it is quite fast and easy to secure one. You can actually apply online as long as you have a computer or a smartphone and you can connect to the Internet. The process does not require a lot of paperwork. As long as you comply with the requirements of the lending company, you can apply online.
The waiting time is not that long. You will know right away if your loan application is approved and how much money you can borrow. Once your loan application is approved, you can get your money the next day.
Important Factors to Consider When Choosing a Payday Lender
Now that you have gone through some information and details that you need to know about payday advance, the next step is for you to find a payday lender. When you search on the Internet, you will come across many companies offering instant cash.
To get the best rates, here are some tips that you have to take into consideration:
- Ask for the rates.
Every lending company differs when it comes to the rates they offer as well as the terms and conditions. There are some payday lenders who charge reasonable rates like 15% while there are some who would charge as much as 50%. If you see a loan company that offers quick cash but wouldn’t disclose their interest rates, do not choose that company.
You wouldn’t want to end up being surprised by the rate that the company will charge you later on. There are also online calculators that you can use to check the interest rate.
- Ask for the terms and conditions
Besides asking about the interest rates, you should also research on the terms that lenders offer. There are some lending companies where you are required to pay the amount in full by the end of the month. On the other hand, there are companies that have more flexible payment options. For instance, you can extend the payday loan. These companies may provide payment extensions with additional fees included.
- Make sure that the company is registered and complies with the law.
The Internet makes it a whole lot easier to get the information that you need about everything. But there can also be many dodgy lending companies that are not legitimate. You would want to avoid these companies.
Make sure that the company is legitimate. Get to know about the company profile. Where are they located? How long have they been in the business? Knowing these pieces of information can help you assess to whether the company is indeed legit and reliable.
Check more information about the Consumer Financial Protection Bureau so you are knowledgeable with your rights.
Gather Information About the Lending Company
As a borrower, you have every right to ask for any information that you need. It is also important that you take the time to conduct your own research. There are several websites that you can access to get more information about payday loans. Since everything can now be done online, you can simply access the website of the lender.
In that way, it is much easier for you to choose among them is the best payday loan service provider depending on your preference and requirements. Since payday loans are much more expensive compared to the traditional loans, you should always exercise caution and select a reliable and legit company.
Should You Get a Payday Advance?
There is nothing wrong in getting a payday advance. There are just really times when you need instant money and the fastest way is to get a payday loan. This is not considered to be one of the best long-term financial solutions. But if you need it right away and you are capable of paying it back without incurring a lot of debt, it does not hurt to get one, especially if you need the money.