What to Know About an Online Payday Loan
A Payday Loan Equals Quick Cash
A payday advance has become popular with people who are looking for a fast loan to fill an immediate need. If you find yourself wanting some cash until payday, what can you do? Maybe you've maxed out your credit cards or maybe you have no credit at all. Banks don't make small loans and not everyone can meet finance company requirements. A payday loan online is available to most anyone wanting a small short-term loan, even with bad credit.How a Payday Loan Advance Works
A payday loan is a paycheck advance secured by your job or a fixed income source. The advance is usually due within two weeks or until your next payday. These short-term cash loans require you to either give the loan company a post-dated check or authorize a future electronic funds transfer from your bank account. You can apply for payday loans online, where your information is quickly verified and the cash is deposited into your checking account. When the loan is due, your check is cashed or the funds are transferred to pay off the loan and lending fee.What's Required for a Payday Loan
Typical requirements for payday advances are:- You are at least 18 years old;
- Your verifiable income is a minimum $800 to $1000 per month;
- You have an active checking account;
- You are a permanent resident or citizen of the U.S.; and
- You have a driver's license or some other goverment ID.
A payday loan lender may also require you to:
- Fax a copy of your paystub or other information; and
- Be reachable by telephone.
Other Information a Payday Loan Lender Considers
Payday lenders don't do a typical credit check before giving an advance, but they do look at how you've handled your money in the past. Areas of concern for a lender might be:- If your checking account is only a few months old; or
- If your checking account shows multiple NSF entries; or
- If you have one or more payday loan outstanding; or
- If you've filed for bankruptcy within the past year.
A short time on your present job might also be a problem for some loan companies. And of course all payday lenders require your information to be verifiable.
Payday Advance Alternatives
Just because it's easy to get a payday loan doesn't mean it should be your first choice. Compared to other loans, the interest rate on an advance is high and it's best to first look at other options:- If the loan is for a bill, contact the company and see if you can work out a payment plan; or
- Try to get payment plans with some of your creditors so you'll have enough to pay your most important bills.
- Cut out or delay any optional expenses.
- Borrow the money from a friend or family member.
- Check with your employer, credit union, or community assistance program for a possible loan.
- If you have a credit card with an available balance, you could get a cash advance.
- If you have something you could pawn, the fees are often less than a payday loan.
