Getting a payday loan is quick and intuitive to most people. However, if you’re new to this, there are a few things you need to know about. In short, a payday loan is a sum of money that you can get within 24 hours and must repay in four weeks maximum. Use the guide below to access a payday loan when you need it urgently.
Decide how much money you need.
The first step is establishing the sum you want to borrow or at least setting a range. You can get from a few hundred dollars to $1,000, depending on your state. Check what amount of limitations your state authorities set. That is the maximum amount you can take. If the sum is too low for your needs, consider other loan products.
Check the list of requirements.
To get a payday loan, you need to be eligible. There is a basic list of requirements valid on the territory of the US. You must be:
over the age of 18;
employed and/or earn an above-average income;
the owner of an active checking account;
an American citizen or a permanent resident;
willing to share your contact details: a valid email address and phone number.
Direct lenders may have additional requirements. Generally, most applicants requesting a payday loan receive approval. Those who have a steady job and earn at least $1,200 a month have more chances to be approved.
Note: you will need to provide additional information for verification purposes. Lenders typically ask you to present your ID, SSN (social security number), and proof of income (pay stubs or bank statements.
Compare lenders.
Narrow down your choices to a few lenders. Rate them so that you have a few backup choices if your first application gets rejected. Take into account the following aspects when comparing businesses:
Their reputation on third-party platforms;
Their rates and fees;
Whether they are a legitimate lender (having a physical address and owning a state license are two decisive factors);
Hidden fees and unfair lending practices.
Apply for a loan.
You can submit a payday loan application online or in-store. Online requests are the current norm, although applying at a physical office is also possible. There is no major difference between the two; choosing one over the other is a matter of preference. In both cases, you need to mention the amount you are applying for and provide a few details about yourself.
If possible, apply early in the morning on a business day. That way, you can get a same-day answer and a high chance of receiving your money sooner. Applications sent out in the evening before the weekend will get processed the next business day.
Carefully read the loan agreement.
It is critical for you to understand the loan agreement before signing it. Pay attention to the terms and conditions, and read the small print to spot any issues. Watch out for any irregularities or vague phrasing. Should you have any questions, do ask your lender for clarifications. Your contract is the document according to which you will have to pay back your loan. It is in your best interest to take your time reading the agreement.
Sign the contract.
Sign the loan agreement if you find it convenient. When applying in-store, it’s a quick process. In the case of an online application, lenders accept e-signatures or scans. Once you do that, your lender initiates the transfer process.
Get your money.
Once you sign the agreement, you will get the money into your bank account in no time. The sooner you handle the formalities, the faster you get to use your funds.
Getting a payday loan is fast, and most applicants have no issue going through the process. If the first lender doesn’t approve your request, you can move on to the next one on your list. Direct lenders don’t typically run hard credit checks, which means the application process doesn’t hurt your credit score. Moreover, a less-than-perfect score is not an issue for you to get approval. That is one of the most important features that make payday advances popular with borrowers.