Frequently Asked Questions
You may have heard of payday loans being referred to in both a positive and negative light. Many times, the negativity associated with payday loans is merely the result of a lack of education about both their positive and negative aspects. See our toplist for the best lenders.
The following are some of the most frequently asked questions about payday loans:
Q: What is a payday loan?
A: A payday loan is a short-term loan that is generally secured to cover short-term financial emergencies. Payday loans are also often referred to as cash advance loans or payday advance loans.
Q: What are the general criteria for securing a payday loan?
A: Generally speaking, to secure a payday loan the applicant must be at least 18 years old; the applicant must be employed on a full-time basis; and the applicant must have an active bank account.
Q: How fast can I receive money from a payday loan?
A: Thanks to today’s technology, payday loans can be secured over the Internet in a matter of minutes, and money can be transferred into your checking account in a matter of hours or days.
Q: What if my credit is poor?
A: Luckily, securing a payday loan is not contingent on your credit score. In fact, most payday loans require no credit check for approval, thereby making them a popular way to secure short-term cash if you have no credit or poor credit.
Q: How much can I borrow?
A: The amount of money you can secure through a payday loan will vary on several factors, including the payday loan company, your monthly income and your history of payments with payday loans. In general, however, a payday loan may range from $100 to $1,000.
Q: Are the major credit bureaus consulted during the application process?
A: Because credit checks are not required to secure payday loans, payday loan companies will not contact any of the three credit reporting bureaus.
Q: How good is the security with a short-term personal loan?
A: Most online payday loan companies go to great lengths to ensure security, although it is still important to make sure the website you are using is secure and that the company has a proven track record.
Q: Do I need a fax machine?
A: Perhaps not. Many online payday loan companies have “no fax” applications, thereby greatly facilitating the process of securing a payday loan.
Q: Can I extend the loan if I can’t pay the loan in full before the due date?
A: Probably, as most payday loan companies offer payment extensions on their payday loans.
Q: Are there options other than payday loans if I need cash right away?
A: Other options include contacting your creditor or service agent for arrangements on bill payment. Moreover, you can seek for companies that carry out debt consolidations for arrangements on debt payment. Such companies associate with creditors in order to make arrangements for possible payment options. The last option entails, seeking an advance from your employer.