Short
Term Cash - Often
a Payday Loan Makes Good Sense
Frequently
Asked Questions - FAQ
When
borrowing money, especially from
an advanced/payday
lender, there are some basic questions which should be dealt with.
Here are a few
which might help your peace of mind.
- What
is a payday loan?
- What
requirements are there
for a short term
cash loan?
- How
much does a fast cash loan
cost?
- How
can I qualify for a
fast cash advance loan?
- How
long is the process to
get approval from
the short term cash lender?
- Will
bad credit, bounced
checks, bankruptcy or other credit
problems keep me from getting my loan?
- Why
do the fees and changes
seem so high for a payday loan?
- Do
I need collateral for
a payday loan?
- How
much can I borrow with a
quick cash loan?
- When
do I have to pay back
my quick cash loan?
Answers to FAQ
1. What is a payday
loan?
A payday loan is a small (up to $1500)
unsecured loan made
for a short term period, usually 2 weeks to one month. It is
designed to
bridge an unexpected shortage of on-hand cash and generally
must be paid back on your next
payday.
A payday loan is designed to be a fast,
no hassle loan to
cover
emergencies that you don't want on your credit card or can't
wait
for slow bank to
approve.
Each lender will have different terms, conditions and fees
usually
dictated by the laws of the state you reside in, so be sure you fully
understand
them all before obtaining the loan
Back to FAQ
2. What requirements
are there for a short term cash loan?
Requirements vary from lender to
lender, but most have at
least these basic requirements.
- At least 18 years of age
- US citizen or legal resident
- Must have a valid bank account, checking, savings or both
- Must have a source of income of at least $800 per month
- Not in the military (The US military forbids their members
to take these type loans)
- Poor credit or having filed for bankruptcy is allowed
- Depending on the state, other requirements may have to be
met
Back to FAQ
3. How much does a fast cash loan
cost?
Each lender must follow the laws of the state they do business in.
Generally they charge an upfront fee of $10 to $25 per $100 lent for a
14 day
loan.
They also charge an interest rate up to 36% APR but
since theses
are short term loans of 2 weeks to one month the interest rate is
insignificant.
There are
other small fees also such as taxes. But
before you sign
the bottom line your total cost will be very clear. There are no hidden
costs.
Back to FAQ
4. How can I qualify for a
fast cash advance loan?
The requirements for a payday loan are much less stringent
than any other
type loan. It is an un-secured non- collateral loan with very
few qualifying
requirements. You need to be at least 18 years old, have a
residence, a
job or source on income at least $800 per month, and a valid bank
account.
But because of their state laws, other requirements are
possible.
Check with your lender to be sure.
Back to FAQ
5. How long is the process to
get approval from the short term cash
lender?
After applying for your loan you can get approval in minutes
up to several
hours. You can usually get the money the next business day
deposited to
your bank account.
Back to FAQ
6. Will bad credit, bounced
checks, bankruptcy or other credit problems
keep me
from getting my loan?
No! These problems will not affect
you getting
approval for your loan. The only collateral considered is you
paycheck.
And so unlike other lending institutions credit
problems do
not affect
your approval.
Back to FAQ
7. Why do the fees
and changes seem so high for a payday loan?
These loans are made with no collateral, bad credit,
previous filing
of bankruptcy, low income and previous bounced checks. This
is why a fee
of $10 to $25 per $100
for a two week loan and a high interest rate is
justifiability
charged by the lender to provide these loans. They take a
chance on
people, people who may seem to be a
great risk, may be temporary down
on their
luck and need a little help to get by a bad situation. Ninety
nine
percent of borrowers take care of their obligations but a few
don't and
these few few
Back to FAQ
8. Do I need
collateral for the payday loan?
No
Back to FAQ
9. How much can I borrow with a
quick cash loan?
The amount you can be approved for when applying for a quick cash loan
depends
on your current income and other questions that may be asked by the
lender.
Back to FAQ
10. When do I have to pay back
my quick cash loan?
A quick cash loan is a short-term loan. It should only be used when you
are
short on cash between paydays because of unexpected expenses or
emergencies.
A
quick cash loan should be paid back on your next payday. Every lender
has
different terms and conditions for their payday loan, and different
timelines for
paying
back the cash loan. Typically, the time is no less than 7 days
and no
more than 18 days. Make sure you fully understand your repayment plan
before
you borrow from a lender.
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