How It Woks

Known as “payday loans”, small short-term cash advances are convenient means of managing urgent financial issues. Typical loan averages between $100 to $1000 allowing to cover the emergency situation in hand.

Traditionally payday loans had been used by applicants who found obtaining regular bank loans problematic attributable to historical issues of bad credit or payment defaults.

Eligibility for a payday loan comes down to minimal requisites, thus making this method available to the majority of applicants holding stable employment.

Typical requirements include:

  • Monthly income of $1000 or above (including full-time or part-time employment, disability and social benefits schemes)
  • Active checking account at any bank
  • Applicant’s age over 18

Proof of income, employment or benefits may be necessary. Normally, applicants require to be employed for longer than 3 months by the company they work for.

Payday loan provisions and conditions differ by state; usually terms of financing are limited to 7-31 days to be fully covered by the next remuneration, wages or salary payout. Lender’s fee averages from $15 up to $30 for every $100 borrowed under the loan. Repayment in installements is available within the general terms of the loan.

Submissions for payday loans are accepted online allowing to select from a variety of lenders. The loan amount granted is usually transferred to the designated bank account of the applicant immediately following approval. Funds are available instantaneously and can be withdrawn as a cash advance for payments. Repayment process is automatic with funds simply deducted from the account on designated dates.

Application process includes filling in a 1-page form with the standard questionnaire regarding employment and income details, the sum required, contact information of the borrower. Due to the limited amount of funding borrowers can avoid in-depth credit history checks taking days or even weeks when applying for traditional bank financing. Online submissions are processed 24/7 with quick decisions and payouts.

Based on the conditions offered by a particular lender, loan repayments typically are automatically withdrawn on prearranged dates without the need of arranging a transfer manually. Inability to repay funds on predetermined dates requires further arrangements to be made by borrowers with the designated lender, including any roll-overs, which would require additional fees.