Installment loans or title loans won’t help you out when you need cash urgently until your next payday. What you’re looking for is a payday loan. They’re getting increasingly popular, with hundreds of lenders competing for your attention to get a loan from them.
One of the primary concerns when applying for any loan type, especially urgent ones, is the qualification criteria. After all, you don’t want to go in blindsided and risk a rejection when you’ve run out of money in your bank. Preparing yourself for the required essentials for a payday loan can minimize those chances.
So, where do you start? First things first, you need to know about a reputable loan site. Select payday loans on WeLoans to get the best offers, trustworthy lenders, and flexible terms. Now that you’re there let’s talk about payday loans and what it takes to qualify for one.
What are Payday Loans?
For starters, payday loans are short-term loans, meaning they don’t have a repayment period that extends for months or years. This loan type was introduced to meet the needs of individuals that need extra money to get by till their monthly salary cheque comes in.
If you’re going for a payday loan, expect the repayment period to be due within a few weeks at most. As quick as the repayment period is, the funding duration for payday loans is quicker, where most applicants receive the money within 2-3 business days.
What else? Payday loans are an unsecured loan type. In other words, you can get up to $5,000 without putting up an asset or valuable as collateral for the lender.
As with all short-term loans, especially those on an urgent basis, lenders charge higher APRs for payday loans than for long-term loan types, such as installment loans. For this reason, payday loans are banned in a few states or have capped loan amounts and interest rates.
The world of online loans can get slightly overwhelming at times. In such circumstances, the more knowledge you have, the better. You can redirect to Nabila Yusuf’s page of WeLoans for up-to-date loan information.
What Are the Advantages of Getting Payday Loan?
With dozens of loan types out there, it’s best to consider whether or not payday loans work for you before going through with it. To do that, you need to know its features. Here’s what payday loans are popular for amongst borrowers:
Bad Credit Acceptable
Worried that a lender won’t give you a loan because of your bad credit scores or no previous credit history? Payday loans are an ideal choice considering their flexible criteria, which include bad credit applicants as long as they have strong repayment ability.
If traditional lenders or other loan types are giving you a headache with their long, troublesome applications and process, it’s time to move on. Online payday lenders have digital applications that only take a few minutes. Additionally, applying through a broker gives you more accessibility to a pool of lenders.
It’s important to note there are loan types quicker than payday loans, i.e., same day loans or emergency loans. However, if you’re good to go for 2-3 days and would prefer better APRs than the loan types mentioned, payday loans are a great option.
What are the Requirements for a Payday Loan?
For anyone and everyone interested in a payday loan, you’d want to know about the eligibility criteria. Where traditional lenders ask for a certain monthly income amount or good credit scores, do you need to fulfil those factors for a payday loan as well? Not really. Here is the list of factors that qualify you to get a payday loan:
As is custom to the US laws, you need to be above 18 years of age to be able to get financial assistance. Lenders will ask you for proof of legal age through your national identity card, license, or passport.
Online lenders provide loans to the citizens of the state they operate in only. To acquire a payday loan in the US, you need to be a permanent resident. This may be verified through property documents, utility bills, etc.
Active Bank Account
Loans get funded in your bank account, and that’s how you repay the lender when it’s time. Without an active checking account, getting a loan isn’t possible. You’ll also need to give your bank details in the preliminary application process.
Proof of Income
Online lenders can’t hand over loans if they’re at risk of not getting repaid. Therefore, any lender will ask you for proof of income. The income doesn’t necessarily have to come from permanent employment. Instead, it can also be through self-employment, business, earnings as a tenant, etc.
How to Apply for a Payday Loan?
Getting a payday loan from a traditional lender may be a hectic process that makes you want to give up. Fortunately, that isn’t the case if you’re applying on an online lender’s platform or, better yet, a loan broker. Go over this step-by-step process to find out how you can apply:
Fill out a Request Form
Visit the WeLoans website to request a payday loan. Redirect to payday loans and select the loan amount. An application form will automatically pop up that you’ll need to fill in with the necessary details.
Decide a Lender
Next, it will be forwarded to WeLoans’ diverse network of lenders, who will then send you their offers. Take time to go over each lender, their reviews, offers, and terms. Choose a lender and go over the finalization process with them, including signing official documents.
Get the Money
The lender may take a while to review your documents and approve your loan application. After that, wait for the money to come to your bank account as fast as 24 hours. On the parallel side, start making a repayment plan and stick to it.
Payday loans can get you through several weeks of expenses that you can’t put off till your next cheque. Applying for a loan can usually be a complex process, especially if the odds aren’t in your favor.
Online payday loans have minimal criteria along with high acceptance rates. So, the next time you need extra cash in your hand, a payday loan is an option that you shouldn’t leave out.