What exactly is a payday loan? A
payday loan is a quick
method to get some extra money. In most cases, you can easily get a loan up to $1000. You can get the money by verifying your income source. It is a risky method but does not involve your home, car,
and other possessions. Payday loans are granted on the promise that the
amount will be returned when the borrower will gets paid.
Usually, your monthly income is the only source of verification for the
company to grant you the loan. However, every company has their own
criteria. Generally, you can apply online for a cash advance. You will
submit an application online providing your paycheck information, bank
account information and references. Generally, the money from the
advance is deposited into your personal account within one business day.
Payday Loan Features
These
loans are small amounts and you can easily get them. You will have to show a proof
of your monthly income which must be over $1000. It will be easier to
obtain the loan if the amount is relatively less. Once you have
established a good relation with the company, you can ask for loans of
higher amounts.
You can easily pay the loan when you receive your
next payment. The deadline for such loans is typically short.
Payday loans are granted at high interest rates and that is why they can easily
be obtained. You may have to pay $20 for every $100 that you borrow.
Each state and each company has its own rules. There are certain
restrictions about how much you can borrow, limitations of interest
rates and what should be the due date for such loans.
How to get the loan?
You
can get the loan by applying online. In most cases, you will have to
fill out a simple form and that is all that is required. The criterion
that is offered by many companies includes:
-
You must be 18 years old
-
You must have a job and you must be earning at least $1000 monthly
-
You should have a checking account.
Most of the times, you will get the loan in the
next 24 hours. You should be careful before you take the loan. Although
payday loans are small amounts, but if you do not pay them on time, you
will have to pay a huge amount of extra money which can be a terrible
experience. Always read the legal policies of your state and your
company before you apply for payday loans. In this era of technology, it is also important to take care of
your private and financial documents. It is always best to schedule
your budget according to your income, but if you cannot, then payday
loans are always the best option.
Regulations and Laws Governing Advances
In
general, businesses that loan money until your next paycheck are
regulated by local state and federal laws. One of the government
agencies that regulates the process is the Consumer Financial Protection
Bureau. The CFPB is a federal government agency that closely monitors
the activities of payday advance companies. They also have an excellent
website with FAQs on frequently asked questions. In addition, if you
suspect that an establishment did not treat you fairly, took advantage
of your situation or another complaint, you can file a formal complaint
online which will be investigated. Additionally, many states have their
own financial protection departments to make sure everyone is following
the rules. For example, in New York State, the Department of Financial
Services monitors activities of establishments doing business in that
state. Unfortunately, in New York payday loans are illegal. It is a
violation of state law for a company to conduct payday advances or loans
in-person, by telephone or over the internet. It is also illegal for a
debt collector, collection agency or the actual advance company to
attempt to collect this debt within the state.
See if you qualify for a Payday Loan.
