Studies have shown that many Americans have little to no savings in their bank account for emergency expenses. This can be quite dangerous from a financial perspective when an unexpected expense such as a car repair, a large utility bill or medical expenditure arises. All too often, this results in families facing the decision of whether to forego future bills, give up other essential purchases or have to borrow the money from family or friends to cover the expense. However, payday loans offer the option of providing the money needed to cover the unexpected expense without having to resort to extreme measures. In fact, payday loans are used by millions of people to pay off an unexpected bill while not creating a financial burden that prevents the payment of other necessary bills and items for you and your family.
A typical payday loan ranges from $100 to $1,500 and many lenders do not perform a credit check as part of the approval process. Most payday loans are paid back with the next paycheck or they can be paid out over a two to three month period depending on the size of the loan.
Payday loans are available in virtually all cities and large towns, but you can go online and receive the loan that you need to cover your expenses. The process of obtaining your payday loan is fairly simple and straightforward.
Fill out Application Form: This is a very short application form that lenders use to evaluate if you qualify for a loan. Such forms are used for single lending institutions or a network of lenders who use the same website service.
Approval: The lender will either approve or reject your application. If you are rejected, you are not out any money as this is a free part of the process. However, most people are accepted and if you qualify, then you proceed to the next step.
Loan: Here, a lender will contact you directly to work out the terms of the loan as according to your initial application. This will mean the total amount of the loan and the payback plan as well so that it will fit into your budget. You will be informed about the interest rate as well which will go towards the total amount that is due back to the lender upon completion of the loan process. Deposit; Online lenders will deposit the money into your bank account generally within an hour or two at most which means that the money will be available usually by the next business day according to the rules of your bank. This means that you will have the money necessary to pay off your unexpected debt so you can then focus on paying back the loan.