The Basics of a Payday Loan – What to Know

June 17, 2019

When an emergency arises and you don’t have the money to cover the expenses, payday loans can be of great help. Payday loans are short-term credits that are usually expected to be paid back in full within two weeks. They have become popular among borrowers because of the ease of approval and the timely release of funds. These features make them beneficial for those who have an immediate need for cash, whether it’s for a medical emergency, an auto repair, or a plumbing issue.

Before you apply for a payday loan, it is important to understand some guidelines on borrowing to ensure that you will benefit from it. Here is some information you need to know before taking out a payday loan:

1.  What are the requirements?

Like other types of loans, payday loans involve certain requirements that you have to meet before you can take one out. The basic requirements are that you must be at least 18 years old and a U.S. citizen. You should also have an active checking account at a bank or credit union because you will be asked to submit a proof of adequate income.

2. What does the application process entail?

Applying for a payday loan is easily done online. You can complete the application form in just a few minutes. Some personal and financial information will have to be provided, including the following:

  • Your full name
  • Your address
  • Your phone number
  • Your email address
  • Your proof of income (bank statements)

You don’t have to leave your home during this process as the process is done entirely online. Once approved, the funds will be transferred directly to your bank account.

3. What happens after the submission of the application?

Upon the submission of the requirements, you should learn about the results of your application within 24 hours. It is recommended that you send your application on a Monday or Tuesday morning for faster processing. Avoid sending it over the weekend as your application will not be processed immediately.

4. Can your credit score affect your eligibility?

Yes, your credit score matters when you are applying for a payday loan. Those who have poor credit scores will have difficulty in securing a loan, but it is still possible to be approved. Most payday loan providers run a credit check on each applicant, but some lenders have more lax policies. This means that even with a low credit score, you can still apply for a payday loan and be approved to borrow the money you need. This makes payday loan an excellent alternative for borrowers who are unable to get approved for a personal loan due to low credit scores.

Conclusion

Everyone experiences sudden situations with unexpected expenses that need to be settled right away at some point in their life. A payday loan can be a life-saver and is convenient and beneficial to borrowers with emergency needs for cash, with approvals done in as little as 24 hours.

If you need to borrow a payday loan, apply now through Fat Cat Loans. We will help you find the lender with the best rate for your needs. The loans are straightforward and flexible, with repayment periods suitable for you!