Obtain Fast Loans From A Payday Lender?

Answer 1

Personal loans from a bank are not easy to obtain. The application process is lengthy, approval times are slow and an inquiry is made to the credit bureaus. The popular alternative is a direct payday loan. These cash advances are made by lenders specializing in small, short term loans. No credit check is required and the money can be in the borrower's bank account in 24 hours.

Nearly Everyone Qualifies

Unlike a traditional bank loan a payday advance is secured by income from the applicant's place of employment. Lenders extending this form of short term credit are exempt from certain usury laws. The repayment is made in full when the borrower receives a paycheck from work. All that is required on the borrower's part is a verifiable source of income, an active checking account and proof of age and identity.

Some lenders approve payday loans for individuals who have a monthly income of $1,000 or less. The actual amount of the loan will depend on the verified income as well as state laws. Each state allows a certain maximum borrowing limit for this type of credit. Some states allow payday loans of up to $1,500. Others cap the loan limit at $300. The loan period is also different for each state. Most have a 31 day maximum loan period. When applying for a cash advance the applicant will be given choices based on the state of residence.

Direct Deposit Of Funds

Applicants need not leave their home to complete an application or be granted approval for a payday loan. The application process can be completed online and approval often takes less than two hours. The lender needs information on the borrower's checking account in order for the loan to be transferred electronically.

Most lenders will use one of the next two pay dates at the borrower's place of employment as the repayment date for the loan. These cash advance loans carry a finance charge that is a percentage of the amount borrowed. The finance fee rate varies by state and can be as low as 10 percent. When the loan is due the lender will withdraw the amount borrowed plus the finance charge from the customer's checking account.

These loans are easy for most individuals to obtain. They are meant as an emergency source of funding, however. An excessive number of payday loans can mean finance fee totals begin to mount up. For this reason some states limit the number of payday loans allowed per year.