Online Payday Loan Application

Online payday loan applications are the fastest way to raise finance quickly. Those lenders who offer you this facility point out that the procedure is fast, straightforward and will result in a rapid response. Normally payday loans are processed within the same day the application is made, and the payment is sometimes made on the day of the application if the application is submitted and approved before midday. If it cannot be approved or declined on the same day a decision will be made by the following working day.

Payday loan providers explain that the payday loan allows you to deal with immediate payments you need to make without having to wait until your next payday. You will have to decide whether you should apply for a payday loan. Some of the uses of payday loans are to avoid late payment fees, overdraft charges on your bank account, or unexpected charges such as auto repairs in the event of a breakdown.

In order to qualify, you will need to have a US checking account that has direct deposit facilities available. This is important because this is how the money will arrive and it is from this account the payday lender will recover the loan plus interest. Only applicants aged over 18 years will be considered for a payday loan. You should also be a US citizen earning at least $1,000 per month. Given that you meet these criteria, your loan application will be processed and considered for approval. Sometimes you may get partial approval and be offered a lower amount by the payday loan company. You can consider whether to take up this offer or look elsewhere.

When you are reading information about the offer an online payday company can make you, you need to pay close attention to the Annual Percentage Rate (APR). This is the amount of interest that you will be charged for the loan. Payday loan companies make the borrowing process as fast and easy as possible. Apart from your personal details, you need to inform the payday loan company who your employer is. Your personal details include your date of birth and whether you are paid weekly or monthly. You should also expect to be asked whether you are paid the day before or the day after the weekend, if your payday falls on a Saturday or Sunday.

The APR for payday loans are some of the highest on the market. Do not be surprised if you find rates as high as 200% APR. You may be surprised that payday loans cost so much, but bear in mind that these are practically the easiest and fastest loans to get and the idea is to pay them back within 30 days of the application approval. You really do need to be sure that you can repay the payday loan on time because with such high interest rates defaulting will incur an exceedingly high rate of interest repayment. Consider for a moment that if you borrowed $800 and were unable to repay the payday loan for a year. Your total outlay could be as high as $2,400 if the interest rate was 200%.

There is no restriction on the number of payday loans you can apply for. In some cases you may be looking to borrow $800, but decide to take two $400 loans, as this is the maximum the two payday loan companies will offer you. If you need $800 then this is the only option. Many of the better payday loan companies will advise you to think extremely carefully about taking out a payday loan. They go on to explain that if you are facing a payment you need to make that can be delayed until payday, then wait until payday comes. Payday loans should never be used for buying things that you can do without until payday. For example, using a payday loan to buy a birthday present is not a suitable solution. The person you intend to impress with such a present would, more often than not, be quite happy to wait until payday to receive your intended gift, rather than seeing you getting into debt and risking all the associated costs.

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