Payday loans are specifically designed for anyone that needs quick cash before their next paycheck comes in. The purpose of the payday loan is to provide easy and fast money to ensure you can take care of any little emergency that may pop up.
A Fast Cash Advance Payday Loan is a type of high-interest, short-term loan. In most cases the loan will be between $50 and $500. Anyone can obtain these loans from a payday lender, which is a company that offers a number of other financial services, such as utility bill paying, license processing and foreign currency exchange.
The process to obtain a payday loan is actually quite simple and explained here.
First you need to locate a reputable payday lender. You can do this in person, or online. There are a number of lenders that only operate online. The application process is not the same as what you see at a bank. In most cases, the application will include the following information:
- Your contact information
- Your banking information
- Your employment information
The lender will also likely request the contact information for several of the applicant’s friends or family members. These references would be used if you are not able to pay your loan back.
The next step will be for you to write a check to the payday lender for the amount that you are requesting to borrow, or if you are applying online, you will promise to repay the amount you have borrowed by a specific date. The lender will also add in the fee or finance charge. In most cases payday lenders will charge fees for every $100 you borrow; for example, paying around $15 per $100 is completely common.
Once the application is complete and approved the lender will deposit the money into your bank account, or provide you with a check for the total amount. When the term has passed, the company will cash the check you wrote or debit your bank for the total amount. This will pay back your loan and pay the lender’s fees.
There is an option for rollover if you are unable to have the check cased where you will be able to roll the loan over for another term, which is typically for another 14 fees, along with additional fees.
The convenience and ease of payday loans have fueled the allure, allowing anyone in need of quick cash being able to get the money they need when they need it.