Things to Consider Before Applying for a Loan

Before you take out a payday advance, there may be some questions and concerns still lingering. Some of the most common concerns include:

  • Why do people get a payday loan?

These loans are short-term and offer financial assistance to the applicant in-between paydays. The borrower writes a check for the amount of the loan plus additional finance charges. 

  • When does the loan have to be repaid?

Typically, the basics behind this loan are that it is short-term and most lenders require the loan is repaid on the next scheduled payday. Some lenders allow an extension which may be subject to additional fees and penalties. 

  • Are there fees associated with this type of loan?

These loans are based on the applicant’s income, which ensures the applicant won’t have a problem repaying the loan on their next payday. Most payday lenders have fees associated with these types of loans. The fees are usually based on the amount borrowed and may vary depending on the lender. If a loan isn’t paid back in a timely manner, the borrower may be subject to other fees and penalties. 

  • What kind of qualifications do I need to get approved?

To qualify for a loan, an applicant typically needs:

  • A valid driver’s license/state issued ID
  • Steady Income or Proof of employment
  • Have a valid checking account in their name

(Some lenders require credit checks, valid contact info such as a telephone number or email address, and some lenders may require references, etc.)

 When can I apply for a new loan?

Once the current loan is repaid, most lenders make an applicant wait 24 hours before they can apply for another loan.

  • Is a credit check required for this type of loan?

No. Although some lenders may check credit, the majority of lenders do not. These loans are based solely on an applicant’s income and are repaid on the applicant’s next payday. 

  • How much money can I get a loan for?

Income, banking information and proof of employment are the main things considered when the lender is deciding on how much money to lend. First-time borrowers may only be approved for a minimum amount, but most payday loans range from $300 to $1000.

  • Do I need collateral to apply for a payday loan?

No. Collateral is not necessary or required to utilize these pay advanced services.

 

To sum it up, payday loans offer the money you need, when you need it the most!

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