How to Apply for a Payday Loan Online
Most payday lenders offer the option of applying for a loan online, normally on their website, which can be done in the comfort and safety of your own home. These loans help borrowers secure cash fast for emergency expenses when payday is still weeks away. The application process is fairly simple, and loans are easy to qualify for, as long as the applicant is 18 years or older, has a job, valid ID, and a checking account. Some loans are approved in as little as 15 minutes. The borrower is normally asked to provide a post-dated check that includes the loan amount plus lending fees, or bank account information so a withdrawal can be made on a certain date. Loans can be paid back directly, or the lender will cash the post-dated check or make a withdrawal when the loan is due, usually within two to three weeks. If the borrower is unable to pay the loan on its due date, the loan can be extended; however, additional fees are added, which can push the borrower even deeper in debt. If you’re considering a payday loan, be sure you will be able to pay it back in full in a timely manner to avoid excessive fees.
Payday lenders typically charge a fee of $10 to $30 for every $100 borrowed, so it’s best to repay the loan as quickly as possible. If the loan is extended longer than a few weeks, the APR can add up. For example, a $15 fee on $100 is about a 400% annual percentage rate. The best way to use a payday loan is to reserve it for a true emergency and pay it back as soon as it’s due.
Millions of Americans use payday loans each year, and most of these borrowers do not have access to credit cards or savings accounts. Payday loans are more accessible to consumers with poor credit, so they are easier to secure than a traditional bank loan. When an unexpected emergency occurs and money is needed right away, payday loans are an easy way to get the necessary funds quickly. They can really help in a pinch, and as long as the borrower is able to pay back the loan amount plus the lender fees within a short period of time, they can prove to be quite useful.