Payday loans have received a lot of attention in the recent past because of their convenience. However, you should only go for a payday loan after careful consideration. In other words, it is always better to have a clear understanding about how the entire process works. This will assist you to stay away from hassle until you settle the obtained loan amount. On the other hand, it can help you to make an informed decision when you are applying for online payday loans at Personal Money Network.
Here are some of the most common questions that you will get about payday loans.
- What exactly is a payday loan? – A payday loan can simply be defined as a short term, small sum loan, which needs to be settled on the date of the borrower’s next paycheck. It is possible to extend the settlement duration of the payday loan, under certain conditions. Extending the settlement duration can increase the interest amount as well.
- Is payday loan the same as cash advance loan? – Most of the people refer payday loans as cash advance loans. However, there is a significant difference in between these two types of loans. The cash advance loans are generally taken through a personal account or credit card. Or else, they are allowed by the employer.
- How much can you get as the loan amount? – The loan amount you can borrow depends on several factors. They include your income, the lender you select and the locality of yours. For examples, the amount you can obtain through payday loans is limited in some of the states. The lender would analyze these requirements in detail and provide you with information related to the maximum amount that can be borrowed.
- Who can obtain a payday loan? – You will have to fulfill certain criteria in order to obtain a payday loan. You will need to be a citizen in United States of America and be at least 18 years old. You should also be employed and receive a monthly income of at least $1,000.
- What do you need to obtain a payday loan – You will need to have a valid form of identification in order to obtain a payday loan. In addition, you need to be equipped with relevant documents to prove your income and pay period. You should also have an active and valid checking account. You should submit proof to showcase that you have an income to settle the payday loan. Appropriate documents will have to be uploaded. The exact documents you have to submit would differ from one service provider to another. However, you will not find it as a difficult task to locate the documents that are needed.
- How fast can you get the money to your hand? – In most of the cases, you will be able to receive the cash check to your hand or bank account within the same day of approval. Or else, you will be able to get it deposited on the following day. As a result, many people tend to obtain payday loans for emergency cash requirements. In order to get the amount of money to your hands within a short period of time, you should submit all the documents. In addition to that, you will have to be eligible as per the criteria defined as well. Then you can get money deposited to your account within a short time period.
- How do you get the money? – If you go to a physical store in order to obtain the payday loan, you will be provided with a check. The online lenders would take necessary measures to deposit the money directly to your bank account. I that kind of a situation, the loan amount will be deducted automatically from your bank account along with the interest. On the other hand, you have the ability to apply for a payday loan online as well. When you are applying for the loan, you will have to enter a bank account. Then the amount you request will be deposited directly to the bank account. You can withdraw that and proceed with your financial requirements.
- Do I need to have a good credit score to obtain the payday loan? – In general, it is required for you to have a good credit score to obtain the payday loan. It can act as an assurance to obtain the payday loan. However, there are few exemptions as well. Some of the lenders tend to provide payday loans without asking for a credit report. However, you will have to pay a higher interest by obtaining such a payday loan.
Now you have a clear overall understanding about payday loans. Keep these in your mind and go ahead with your decision to apply for a payday loan.