How To Get a Payday Loan
To pre-qualify for a payday loan, you must be at least 18 years of age. Additionally, you may need to show that you are employed or that you have a regular source of income.
The amount of money you are able to borrow is generally be based on your income. There are no restrictions regarding how you choose to use the funds from your online payday loan.
Note: Payday loans or cash advances are short-term loans that typically come with high-interest rates.
What Do I Need to Get a Payday Loan?
If you’re asking yourself ‘what do I need for a payday loan’, here is a summary of what you may need to apply for a cash advance:
- Your full legal name
- A number where you can be reached
- Proof of a steady source of income
- An active checking account in your name
That’s all it takes! Most people are able to complete the application for an online payday loan within just a few minutes.
Lending decisions are made fast so that you don’t have to spend a lot of time waiting for approval; if your loan is approved, you could have the funds deposited into your account the same day.
Most payday loans come with a repayment period of just a few weeks, usually until your next salary date. When the loan is due, the borrower repays the loan in full; in some cases, the borrower issues a post-dated check that the lender can cash as soon as the payment becomes due.
How To Get a Payday Loan
Compare payday loans online from trusted lenders and choose an offer that works for you. Be sure to compare fees and interest rates.
Applying for a payday loan online is easy. Simply choose the offer you want to apply for, and send in the required information and documents.
Your Application Is Assessed
Your application will be assessed and this can be as quick as getting an approval the same day.
Once approved, the funds will be paid to your bank account.
In July of 2020, the Consumer Finance Protection Bureau (CFPB) issued a final rule that removed a previous Obama administration rule requirement mandating that payday lenders assess a borrower’s ability to repay a payday loan.
Payday Loan Interest Rates
The loan requirements of a payday loan should not be the only consideration for people thinking about a cash advance.
When you look at annual percentage rates it is not uncommon for payday lenders to charge APRs that exceed 500% or even 1,000%.
Although there are regulations that limit the duration and size of these loans they are still expensive and alternative loan options should be considered.
Some states, like New York, banned the practice of payday loans completely, while others regulate how much lenders are allowed to loan.
- Consumer Financial Protection Bureauaccessed on September 21, 2021