What Is a Payday Loan?
A payday loan is a short-term fast cash loan provided until your next payday, usually up to $500 and up to 18 days. Payday loans are typically done without a credit check. These loans are also called cash advance loans, check advance loans, or deferred deposit check loans.
When you apply for a payday loan, usually the lender will require that you give them a personal check that is payable to the lender for the amount being borrowed, plus an additional fee. The lender agrees to hold the check until a specified date. When the due date arrives, the borrower may be able to extend the loan, renew the loan or roll-over the loan. Of course, there are additional fees associated with these options.
Because the lender will probably not check your credit, you must provide certain information when applying for a payday loan. You will typically have to provide proof of:
- Employment (employed for at least 3 consecutive months)
- Income (take home minimum of $1000.00 monthly after taxes)
- Checking Account (opened for at least 3 months and no outstanding NSF checks)
- Direct Deposit (paycheck must be deposited this way)
- Age (must be 18 years old)
- Other Payday Loans (no more than 2 other loans outstanding)
No Fax Payday Loans
Today, most of these payday loans can be done online without faxing any documents to the lender. No faxing (somtimes called no fax or faxless) means that you can get the money you need with the click of your mouse--the process has never been more convenient!
A payday loan advance provides the cash needed to meet an immediate short-term cash flow problem. It is not a solution for longer term financial problems for which longer term financing may be more appropriate. You may want to discuss your financial situation with a credit counseling service in your community. You will be charged additional fees if you extend the cash advance.
In many states, they are not available because the state legislatures forbid lending money at such a high interest rate (sometimes as much as 500%).
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