Payday loans are used everyday by thousands of consumers. To make them even easier to obtain, there are lending networks that match you with potential lenders. Here is a FAQ regarding some of the more common queries regarding both of these services.
1. What are payday loans?
Payday loans are designed for people who run out of cash before their next paycheck. They are made to be short-term, and typically do not exceed amounts over a few thousand dollars. People often use them for emergencies. They are very handy for fixing a vehicle, making crucial house repairs, paying off important bills, or for anything else when you need money in a hurry.
2. How does a lending network work?
It is very simple. You fill out a form, which takes only a minute. Then that is sent to a network of potential lenders, who contact you with more specific information. You can then view their websites and see their different offers and rates. Once you do so, you can submit an application with a particular lender.
3. Does using a lending network cost anything?
Filling out the form is completely free. You are under no obligation during this time. Once you see the conditions of a possible lender you may review them to see if they are to your liking before you sign any contract. At absolutely no time are you held liable for anything, unless you agree to to the conditions of a loan.
4. How much money can you borrow?
Lenders are willing to give you anywhere between $100 and $1000. Some may naturally have higher limits, and be willing to lend you as much as $2000. Others may raise your limit if you have paid back previous loans promptly.
5. What are the requirements for a loan application?
You need to be an adult, which means at least 18 years old in the United States. You must also show that you have had your job for the past three months, and that your income is at least $250 a week. You also need to be a citizen of the US, and to have a permanent residence.
6. How can you access your loan?
A payday loan service will deposit the money into your bank account, which you can then withdraw for your needs. In most cases, either a basic saving or checking account will be fine.
7. How long does the process take?
If you have all the information ready, filling out an application should not take more than five or ten minutes. Once an application is approved, you are told within the next few hours. By the next day, or even in the next few hours, the money is in your bank account, and you can use it.
8. Should I be worried about bad credit or no credit?
This is not an issue with loan stores. They want to help people, regardless of any financial mistakes you may have made in the past. As long as you fit their criteria, your credit rating is irrelevant. Even if you have suffered through bankruptcy or other financial hardship, your loan is likely to be approved.
9. How is the loan paid back?
You can typically schedule the loan amount to be automatically deducted from your bank account balance when you get your next paycheck.
10. What if I have insufficient funds to pay back the loan?
You should file for an extension. Be sure to do this before the repayment date, otherwise you may incur late fees and penalties.
11. Can you take out more than one loan at once?
This might be possible, but it is strongly advised against. Customers should focus one loan at a time.
12. If your application is rejected, can you reapply?
Yes. A customer’s circumstances can certainly change, and if they are not eligible for a loan now, they may be in the future. Oftentimes the reasons for non approval are due to lack of employment or insufficient income.
13. Will I need to print or fax anything?
You should have access to a printer so you can view and fill out important documents. In the majority of cases, you will not need a fax. Occasionally a lender will require verification of information. If you do not have a fax machine, you can usually obtain the services of one at a store like Office Depot, Kinkos, or Staples.
14. If the lending network does not charge anything, how do they make money?
They receive a commission from a lending company that a customer was matched to using their services. It is a mutually beneficial arrangement for all involved. The lending network makes a profit, and the lending stores receive more business than they normally would. You, as the customer get to see a wide variety of lenders and take your pick from the ones that meet your needs.
15. Why is it beneficial to use a lending network?
You can quickly find a multitude of lenders who can help you, and you can review different offers and rates to figure out what the best one is for you.
16. Are there standard rates for the amount of money borrowed?
On average, it will cost you roughly $10 or $12 per $100 that you borrow. This could vary on the lender that you opt to do business with. If this seems like a lot to you, remember that the money you are borrowing is sometimes being lent to you on less than a day’s notice. In addition, many times it will save you money. Fixing a vehicle so you can still get to your job is better than missing days of work. Borrowing money to avoid a bounced check may be cheaper than incurring a fee from the bank.
17. Is my information securely protected?
Information is sent to all lenders using the latest encryption technology. You do not have to worry, because sensitive financial information is guarded safely.
18. Can you use a payday loan service more than once?
Yes. If you need money, you are certainly encouraged to take advantage of payday loans multiple times. Companies appreciate the repeat business, and you know that there is always somewhere you can turn when you need money fast.