Common Payday Loan Questions
Need to know more about online payday loans? This is where online payday loan questions come to be answered. Peruse our FAQs to get all the information you need before you apply. Contact your nearest payday loan lender if any of your questions are left unanswered.
What is a payday loan?
A payday loan is a safe and convenient short-term loan, created to allow borrowers to stretch their monthly budgets when the unexpected happens. Payday loans are unsecured, don’t require a traditional credit check, are usually for small amounts of cash, and typically require only a few easy steps for fast results. Most payday lenders provide their payday loan services online or in a neighborhood brick-and-mortar store. In either case, a payday advance loan can be a simple, responsible solution for a temporary budget shortfall.
Why do people choose a payday loan?
People choose payday loans to boost their otherwise stable household budgets. Payday loans can be a fast, safe and readily available source of assistance. When unexpected expenses or a surprise cash crunch leaves you in danger of falling behind on finances, you can apply for a payday loan. When used properly, payday loans can be a great choice for a short-term need, and can help you avoid the cost of bounced checks, overdrafts, and late payments.
Payday loans are popular for several reasons. Small lines of credit and short-term loans are becoming scarce at local banks. If they are offered, the approval process can be lengthy and complex. If you choose an online payday lender, you can apply from home in minutes.
What if I need to extend my payback period?
Not all payday loans can be extended or refinanced. Loan extensions are authorized based on individual lender’s policies and extensions are not available in all states. Visit the Terms & Conditions page of your lender’s website to see if extensions are offered. Just remember that fees may apply to extensions.
Can I still get a loan with bad credit?
Payday loans are based on a number of independent variables. A less-than-perfect credit score should not prevent you from receiving a payday loan.
How can I tell if I’ve been approved for a loan?
Typically, online payday lenders will email you with a confirmation letter and instructions on next steps, once you have been approved for a loan. Then you will likely be directed to the lender’s website where you can usually accept the loan immediately by using an e-signature.
How much money can I receive?
Payday loan amounts are based upon the information you provide in your loan application and state statutory limits. Most payday loans range from $250 up to $1,500; however, some lenders do offer installment loans in larger amounts. If this is your first loan, you may not be approved for a high amount. However, after successful repayment of your payday loan, lenders may raise the loan amount on future payday loans. Amounts are dependent upon state laws and regulations, so check with your lender about the state constraints on payday advances where you live.
When will I have access to my funds?
After you have been approved, you should receive funds within 24 hours, unless it’s a weekend or a holiday. Some online payday lenders can wire cash directly to your account in as little as one hour.
What if I don’t have enough money to pay off my loan?
Contact your lender immediately if you don’t have the money to pay off your balance in full. Most online payday lenders will accept partial payments and extend your loan for an additional fee. But, the original loan fee must usually be paid first before you can be granted an extension, and before you can take out another loan for the remaining balance.
When I pay off a loan, how soon can I apply for another?
If you need money immediately, most lenders allow borrowers to apply for another loan right away. Once your payment has been received by the lender, it normally takes up to two business days for your payment to clear their bank. Once the payment goes through, it’s reported and the lender will normally grant you another loan, sometimes for a higher amount.
Why do online payday lenders request to have sensitive info?
Online payday lenders must have your personal information to confirm your identity and find the loan that best meets your requirements and wire money. If you choose a reputable lender, your information will be safe and secure, and they’ll be able to deposit funds into your bank account without any problems.
