Don't waste your time. Get a loan online.
It’s not necessary to have financial emergency that is unexpected. You may be able to resolve your financial crisis in your lunch hour with the quick funding of instant loans online. Payday loans can be a great option for those with poor credit and who don’t want the hassle of traditional bank loans. However, before you apply for a payday loan you need to understand how they work and if it is right for you.
What are payday loans?
Payday loans are low-interest, small-principal loans with high interest rates that are usually due to be repaid in a matter of weeks. These loans are designed for those who require quick cash to keep them over until payday. Although payday lenders are easy to apply for and receive funds, they often charge higher interest rates due to lower credit standards.
What is the process of payday loans?
After you have been approved for a payday loan your lender will require you to complete basic paperwork online. To receive your funds, you will also need to provide your bank account information.
Lenders and loan amounts will affect the terms of your loan repayment. However, some payday lenders expect that the full amount of the loan plus interest will be repaid within 2 to 4 weeks. If you borrow $300, your lender may set up an automatic draft from your checking account to repay $340 2 weeks later. This includes the original principal, plus any interest and fees. Your lender might arrange automatic payments every 2 weeks for larger loans. You may be able mail your payments in some cases. However, these arrangements are not standard.
Don't waste your time. Get a loan online.
Payday Loan Online Lenders Charges for Loans
There may be additional fees when you shop for payday loans. A small application fee is required if the lender requests a background check. Origination fees are charged by most lenders. These can be either a flat fee, or a percentage of your requested loan amount. They cover administration costs for processing and maintaining your loan.
There are some fees that lenders do not charge and can only be applied to certain circumstances. Late fees may also be applied if you fail to make a loan payment. Pre-payment fees may be charged by some lenders if your loan is paid off early. Others may charge renewal fees if your loan is renewed or taken out again at the end of a repayment cycle. These fees increase your borrowing costs and should be avoided. Make sure you have a plan to repay the loan and stick to the repayment terms.
Before apply for instant loans online, here are some steps
Payday loans are very popular due to their simplicity and quick funding. Payday loans have been subject to a negative stigma due to their ease of access, particularly when borrowers do not conduct proper research. Before applying for this loan, make sure you do the following:
- Select the right type loan – While instant payday loans are an extremely specific type of financial product. However, there are some companies that offer products called “payday lenders” that do not fit this definition. Some companies might ask you for collateral in order to secure the loan. This puts your personal property at serious risk. Before you apply for a loan, make sure to understand the details.
- You should consider your options. Payday loans may not be the right fit for everyone. You might consider other options if you require a quick influx of cash to resolve a financial crisis. These include borrowing money from friends or family members, getting credit cards or working with a second job.
- Be sure to review the requirements of your lender. Each lender has its own requirements regarding proof of income, credit scores and loan amounts as well as repayment terms. Be sure to check the requirements of the lender before you apply for a loan.
- Payday lending is regulated by the Attorney General of each state. These laws are intended to stop predatory lending practices that exploit low-income families. Payday lenders must comply with them. Learn about these laws and ensure that your lender is compliant with applicable state statutes.
The Basic Requirements to Apply for an Online Loan
Payday loans that are instant are regulated by the state. Lenders must adhere to the laws of the state in which they operate. The requirements for obtaining a payday loan vary from one lender to the next. To be eligible for a loan, lenders will require the following basic information:
- Age – To be legally bound by a payday loan contract, the borrower must have at least 18 years old.
- Credit Score: Active checking account – Payday lenders won’t accept cash or issue checks to fund your initial loan proceeds. Instead, they will direct deposit the funds into your active checking. Lenders may also require that your loan repayments be automatically drawn from the same account.
- Proof of income – While the requirements for income will vary depending on where you live, lenders need to see documentation that proves you can repay the loan. This doesn’t necessarily have to be income from a regular job but it must be consistent, recurring income.
- An email address, phone number, and address are required. If you don’t make your payments on the due date, your lender will need to know how to reach you. A stable address, contact number and email address are required. For references, many lenders will also require contact information.
There are reasons why your application might get rejected
Lenders may deny payday loan applications even though the requirements are less strict than for other loans. However, they can still refuse to approve loan applications if the risk of default is too high. IF your application got rejected it could be one of or multiple reasons from below:
- Your income is not sufficient or you aren’t employed – Lenders may decline your application if your income isn’t enough to pay your loan payments and cover your basic living expenses.
- You have a payday loan, or you borrowed one recently. Each state has its own limitations. However, most states restrict borrowers to one payday loan. Borrowers are usually limited to $500-1000 in payday loans in states that allow multiple loans.
- Too many current debts. Since lenders don’t focus on your credit score, they will likely assess your ability to repay your debts. Lenders may not take on that risk if you have too many debts and too little income.
How to get a payday loan online at Motiveloan
If you’ve decided that an instant payday loan is the best option for your financial problems, you can usually complete the application process right away and get funding the next day. These are the steps to get a payday loan.
- Complete the Loan Application Form. Many reliable payday lenders offer an easy loan application that you can complete online. Make sure to have your income documentation and identification information available so that the application process is as smooth as possible.
- Compare and Receive Offers – There is a wide range of payday lenders. You are not required to accept a loan even though you have been approved. You may get multiple offers from different banks when you apply for instant loans online with Motiveloan. You can compare these offers by comparing interest rates, loan amounts and repayment terms, and then choose the one that meets your needs.
- You must sign the agreement after you have chosen the best offer. This can often be done online via a secure portal, without you needing to visit a physical location.
- Get your Money – Most lenders will direct deposit your funds to your bank account within 24hrs. Ask your lender to provide an estimate of the time it will take for your application. Depending on the lender’s policies, some lenders offer same-day depositing. Others may require 2-3 business days.
Payday loans: The pros and cons of apply for instant loans online
While payday loans may be a good option to meet short-term financial requirements, you should weigh all the pros and cons of this financing option before you make a decision.
Pros
- Simple application process – Traditional bank loans can take many days, if not weeks, to complete and submit all documents. Many lenders offer online applications for payday loans that can be completed in less than an hour.
- Fast funding – Once your application is approved, you should receive your funds within 1-2 business days.
- There are no or low credit requirements. Some lenders won’t check your credit. Others will run a soft pull that doesn’t harm your credit. As long as you don’t have any major credit issues (e.g., a bankruptcy or defaulted on a payday loan), those with low credit scores may still be eligible.
Cons
- High interest rates – With interest rates as high as the triple digits, your loan could accumulate a lot in a short time. You don’t want to get stuck in a cycle where you have to renew payday loans every month just so that you can pay your regular bills. Make sure you are able to repay the loan on your next paycheck.
- Payday loans with short repayment terms are better than auto or home loans, which can take years to repay. Instead of paying your loan over time, you should pay off your payday loan in a matter of weeks. This will minimize interest and fees.
