Payday loans are unsecured loans, which means that they are not dependent on any collateral, be it in terms of you owning a car or a house. Generally speaking, payday loans are dependent on the amount of money you make every month. However, the less you borrow, the more the chances of you getting approved are. Once your repayment has been successful, the company can trust you with a higher amount the next time. Payday loans are great cash flow issues in the short term.
How to get a payday loan
In the majority of the cases, payday loans are available to consumers online. This means that they will not have to suffer through any delays in terms of posting or faxing their documents. The application process itself is quite easy and quick. The details that the loan company will require are your address, name, the amount you would like to borrow, details regarding your employment and monthly income, as well as your upcoming payday.
Once the application is submitted, either directly with a lender or with a comparison site like Quiddi Compare, you would most likely hear from the company within a few minutes. They will be sending you an email detailing the decision that they have made on the address that you have provided to them.
In part, the payday loan providers will be making a decision of whether they should be providing you with the loan or not based on the amount that you wish to borrow. They also compare this to your monthly salary. Therefore, it is important that you only borrow the amount that you require at the time, so that the chances of approval are increased further.
Upon the success of your application, you will be sent a loan agreement through email that will show you how much you will be lent. Along with this, you will also find out about the interest amount and the repayment date. You will also receive the loan conditions, which should outline the rights of the consumer and the details regarding use of personal information and cancelling and repayment of the loan.
If you are satisfied with all the terms and conditions, you can go ahead and place your signature on the online document. The money will then come into your account on the very day that you sent in your application.
Repayment of the loan
The loan amount will have to be repaid along with the interest in the date that has been mentioned in the agreement. In most of the instances, the repayment date will be your payday, which is primarily the reason for the name of this loan.
Your loan provider will collect your repayment and this will be done by debiting the amount from the bank account that you submitted at the time of the application.
In case you cannot pay back the amount on the due date, then you can most definitely get this date extended. However, be sure that you contact your loan provider beforehand to ask what their policies are in such situations. Most good payday loan companies will try to help you out in the respect, so its always worth asking