How It Works:
While payday loans are very straightforward, it's certainly very helpful to full understand exactly how they work before you apply.
The process can be very simple and quick, and hopefully we can help you to understand each step. Below is a simple guide as to how payday loans work, including how you can request a cash advance, what happens next and how you get the money you want.
Eligibility for a payday loan
In order to qualify for a payday loan, there are a few basic things that you need first.
The criteria usually varies from that of credit cards and bank loans, and even the credit check is different. Having a bad credit score won't necessarily disqualify you from getting a payday loan!
- You must be at least 18 years of age to qualify for a payday loan. This isn't a rule which is specific to our company – this is one of the laws in the US. All loan companies and lenders must adhere to this rule, so if you're under the age of 18 at the moment, you will need to wait a little longer before applying.
- You should also be in receipt of some form of income. This does not necessarily mean that you must be employed – it could be disability benefits or another form of income. This is just to prove that you have a means of paying back the money which you would like to borrow. You will normally need to show that you have been employed or in receipt of income for at least one month.
- Finally, you should have a bank account and be prepared to provide the details of this account during the application process. It shouldn't have any existing problems, and should be able to accept money paid to you by a lender. There is no other way to receive your loan, so if you don't have a bank account at the moment, you should consider setting one up if you want to apply for a cash advance.
Requesting your loan
You can begin requesting a loan by filling out our online request form. This will ask you for several personal details, such as your name, address, email address, phone number and bank account details. As soon as these details have been inputted, we'll search for an appropriate lender to connect you with. This step normally takes around three minutes. The information you give will be shared with the lender you are connected to via the process. We use modern technology to encrypt your details in order to keep them as safe as possible on the internet.
This stage of getting a payday loan normally takes a couple of minutes, which means that you can fill it out at any time of the day even if you don't have a lot of time on your hands. In many cases, there will be no faxing or very little documents to be sent across to the lender; however, you may be asked to fax additional paperwork in some cases.
Getting fast approval
After submitting the request form, you may be surprised to discover that you're connected with a lender very quickly. Your information will be passed onto the lender which you've been connected to. The fact that you can find a lender so quickly makes it easy to get the money you need and as fast as you need it. You won't automatically get the cash straight away at this point – you'll still have to agree to the terms and finalize the details with the lender before it is deposited into your bank account. If you change your mind at this point, you don't have to accept the loan and you won't be charged any fees.
Signing the agreement
If you still want to go ahead with the payday loan, the lender will contact you to make sure all the details are correct and to give you a copy of the loan agreement. These terms will contain everything you need to know about your cash advance, including when you must repay the money and which fees and charges will apply to your loan.
In this document, you will also be able to find lots of information about whether you can extend or renew your loan, how much you will be charged if you miss any payments and also what it might mean for your credit score if you don't pay the loan back on time. You should always read loan agreements very carefully before signing anything. In many cases, the signing step is faxless as the lender will not need your signature in ink.
Your e-signature will be perfectly satisfactory, making the whole process even quicker.
Getting your loan
The final step is to wait for the money to be sent to your bank account. This can be done as soon as the next business day. In order to minimize the time spent waiting for the loan to come into your account, you should apply for the money during the week rather than at the weekend. If you apply on Friday, Saturday or Sunday, you may not receive your loan until Monday or Tuesday. The lender needs time to process and finalize your loan, and will need to contact your bank before sending the funds through.
During the process, you won't be asked by anybody why you need to borrow the money or what you are going to spend your loan on. You can spend the money on whatever you want or need, and there will be no questions asked.
Repaying the loan
You will be informed in your loan agreement about the date by which you must repay the money you have borrowed. If you don't repay the money by this date, you may be charged extra fees, and your credit score could be affected too. The money will be automatically taken from your bank account on the due date, so you don't need to do anything other than make sure that the funds are there in your account.
Sometimes, you may be given the opportunity to extend or renew your loan; however, this is not always possible. Information about this will be given in your loan agreement, and if you have any specific questions about the loan you are taking out, you should contact the lender directly.