The definition of a payday loan
A payday loan is a short-term, non-secured, personal loan. It is easy to secure and works fast which make payday loan a perfect credit solution for emergency cash need like minor hospitalization or unexpected bills. Payday loan is defined as non-secured because the collateral here is the next paycheck, not a property or some other valued possession.
How to secure a payday loan
Securing a payday loan is so easy and it generally involves a 2-step process. First is to submit a new member application at a payday loan website. Approval is quick and requires no documentation. Wait for a phone call or email from a loan agent who will inform you of an approval. Next is request for payday loan upon approval
The requirements for getting an approval
The requirements for securing an approved payday loan are few. First, you must have a current job for the past 3 consecutive months. You must also have a net salary income of atleast $800 or a maximum of $1,000. A payday loan also requires you to have a valid checking account in your name. And of course, a current home and work contact number.
The waiting period for approval
There’s practically no waiting period because the process is so fast. The approval itself only takes confirmation of your identity through a phone call or email. The approved loan amount is then deposited to your checking account as quick as 1 business day.
The coast for payday loan
A payday loan lender usually charges an average of $20 for every $100 borrowed. Some lenders charge a bit let or a bit more but generally do not go beyond $30 or lower than $15. Inquire with you loan agent for the exact charge amount though this information is usually available on the website. The charge is very low compared to commercial bank loan charges or the payment fees imposed by traditional credit establishments. Payday loan is indeed a cheaper option.
Option for an extension on payment
If you are not able to pay back the loan on the due date, you have the option of extending the payment until the next payday. This is called rolling over and you will incur additional extension fee plus the interest charges. A maximum of 12 weeks is allowed for the extension though most lenders impose a shorter time period but this all depends upon the amount borrowed.