Payday loans are called thus due to two major reasons. These loans exist so those who are short of cash or allowance can survive until the next payday. These types of loans are also paid after you get paid at work.
Money that can be borrowed with payday loans is relatively lesser than what regular loans can offer. Nonetheless, payday loans are beneficial and advantageous for anyone in need of a quick cash source. This explains why payday loans are popularly referred to as fast cash loans in the U.S.
In a quick glance, the benefits and advantages of a fast cash loan include:
- short term loan
- applications from loan applicants with low monthly income can be approved
- instant approval is also possible
- no documentation needed
- application can be processed online, over the phone, and in person
- no credit checks required
- cash releasing within 24 hours
- no fees
- discreet and secure
Loan providers recognize the fact that you are in need of money right away. Thus, an application is normally approved within the day, a few hours, or even instantly (well, around 30 minutes actually). The money is also released or deposited into an applicant’s bank account within 24 hours upon approval. This makes it perfect for an emergency situation. This is in contrast to standard loans from banks and financial institutions which take weeks to approve a loan and release cash.
The requirements differ per creditor. But most payday lenders do not even require submission of documents. American lending institutions, however, may require loan applicants to be American citizens, at least 18 years, employed on a full time or regular basis, and must have a bank account.
When it comes to income, lenders require an individual’s monthly income to be at least $1,000 on average. This varies from lender to lender. The purpose behind checking monthly income is to ensure that the loan can indeed be paid on payday. The amount being borrowed versus the total income for a month also matters for a lender. Approvable loans can be as high as $500 AUD.
In relation to credit checks mentioned earlier, even people with low credit scores and ratings can apply for fast cash loans. Since it is only a short term loan, you can worry no more after it is paid on payday. Real loans on the other hand would have you worrying about them month after month.
Choosing a Lender
Since there are numerous payday loan providers out there, be sure to compare a few potential candidates prior to applying. When choosing a lender, there are factors to consider. One of these includes the charging of fees. In general, most do not charge fees except for interest rates and fees for late payments. In case the loan cannot be paid on the specified date, it can be extended with an additional fee or interest. These can be avoided though with prompt payments.
The security of all information provided is also important. This should be discussed with the lender before even applying. Most lenders at least have a confidentiality agreement. Not only is your financial information secure, the whole application process is also discreet. No one else will know about it in any way.
The application process also matters. Payday loan providers can accept loan applications in an actual office, over the phone, and online. You may just have to choose based on personal preferences as to what is most convenient for you.