Short on cash? Do not feel alone. Unemployment rates for most states in the U.S. are surpassing the 10% mark, causing many to be in need of a small cash loan. A cash loan for $100, $500, or $1500 may help pay for food, bills or a needed car repair. Banks have cut back on loans to consumers that have bad credit. A payday cash loan may be an option to consider when money is tight and unexpected expenses arise. Here are some important factors to consider when searching for a payday loan online.
1. Know the requirements before submitting an application. Applicants must be 18 years of age, U.S. citizens, and have a bank account. A minimum monthly income of $800 is usually required by payday lenders. Most lenders prefer applicants to have their source of income deposited into the same bank account that the payday loan will be wired to. It is possible to find a lender that will provide a cash loan to applicants with a savings account only.
2. Apply at the right time of day. Access to an online payday loan application is available 24 hours a day, but to get a loan one must apply during normal banking and business hours. This is important for getting a fast loan. The payday lender will need to verify banking information provided on the online application with the individuals banking institution. Apply Monday through Friday, and if a bank is closed due to a holiday, it would be best to wait until the next business day to try to get a payday loan approved.
3. Understand how a payday loan works to avoid surprises. A payday cash advance is a loan secured by a future paycheck. An individual would apply online or at a payday loan store. A requested loan amount would then be wired to the applicants bank account usually overnight or on the next business day. Some lenders do offer loans in about 1 hour. The loan will need to be repaid by the next couple of paydays. It is important to ask questions when going over the terms of the loan. Note on a calendar when the loan will be repaid. Fees are involved with getting a payday loan.
The fees vary by lender, but are usually a certain dollar amount per $100 borrowed. Again, another good reason to ask questions. A helpful hint would be to keep loan requests under $500. Loans below the $500 mark usually get approved more easily than larger loans. Also, a smaller loan amount with added fees would be reasonably feasible to pay back when the time comes. Payday loans should be used for emergency cash and not relied upon for month to month income.