Everything you need to know about payday loans

Payday loans have received a lot of attention in the recent past because of their convenience. However, you should only go for a payday loan after careful consideration. In other words, it is always better to have a clear understanding about how the entire process works. This will assist you to stay away from hassle until you settle the obtained loan amount.

What exactly is a payday loan?

A payday loan can simply be defined as a short term, small sum loan, which needs to be settled on the date of the borrower’s next paycheck. It is possible to extend the settlement duration of the payday loan, under certain conditions. Extending the settlement duration can increase the interest amount as well.

Is payday loan the same as cash advance loan?

Most of the people refer payday loans as cash advance loans. However, there is a significant difference in between these two types of loans. The cash advance loans are generally taken through a personal account or credit card. Or else, they are allowed by the employer.

How much can you get as the loan amount?

The loan amount you can borrow depends on several factors. They include your income, the lender you select and the locality of yours. For examples, the amount you can obtain through payday loans is limited in some of the states. The lender would analyze these requirements in detail and provide you with information related to the maximum amount that can be borrowed.

Who can obtain a payday loan?

You will have to fulfill certain criteria in order to obtain a payday loan. This criteria is defined and governed by the payday loan laws. You will need to be a citizen in United States of America and be at least 18 years old. You should also be employed and receive a monthly income of at least $1,000.

What do you need to obtain a payday loan?

You will need to have a valid form of identification in order to obtain a payday loan. In addition, you need to be equipped with relevant documents to prove your income and pay period. You should also have an active and valid checking account.

How fast can you get the money to your hand?

In most of the cases, you will be able to receive the cash check to your hand or bank account within the same day of approval. Or else, you will be able to get it deposited on the following day. As a result, many people tend to obtain payday loans for emergency cash requirements.

How do you get the money?

If you go to a physical store in order to obtain the payday loan, you will be provided with a check. The online lenders would take necessary measures to deposit the money directly to your bank account. I that kind of a situation, the loan amount will be deducted automatically from your bank account along with the interest.