Payday loans are the types of loans that basically work like cash advances. These also are 24/7 installment loans that could amount from $100 to $1000. In general, these types of personal loans are due for payment on the next payday of the borrower, which is usually in two weeks. Ideally, these instant guaranteed loans are meant for short-term use only. The problem, however, is that borrowers tend to be too dependent on them and this causes borrowers to fall into deeper financial problems considering how expensive such loans can be.
If you find yourself on a very tight budget and you have actually explored all the other options to have money, you have no other choice but to turn to direct payday companies. In this case, here are the things you need to prepare.
Installment Loans – Personal Loans
Another type of loan, besides payday, is a personal loan. A Personal loan is an installment loan that you can take out for a longer term (1-2 or 3 years). A personal loan with monthly payments is much more affordable than a payday loan. You can borrow from $1000 to 35,000 or (with some lenders) up to $100,000. The most popular loan is a $5,000 personal loan.
Borrowers applying for an online loan are required to provide such information as driver’s license, home address, and social insurance number. A lender may request documents to be submitted, such as a government issued photo IDs, official passports, green card or other documents. Should you have any questions with regards to the identification requirements asked for by legitimate personal loan companies, you can simply inquire by giving them a call or even visiting the payday loan company office.
Another very important requirement when applying for 24 hour installment loans is a proof of employment. There are some legitimate payday lenders that have a required minimum salary for a borrower to be approved for a loan. In case a loan applicant is unemployed, it is still possible for lending companies to accept and approve a loan application provided that the unemployed applicant is a recipient of Social Security checks, unemployment benefits or perhaps has other sources of regular income.
Checking or Savings Account
An active checking or saving account is also a requirement for applicants. This is because borrowers need to give the direct lenders a signed check with the loan amount, including the finance fee. This check should be issued before the loaned amount can be released. The other option of a borrower is to write and sign an authorization letter allowing the legitimate lending company to take loan amount from his/her checking account and the interest when the loan is due.
Credit Check and Approval
Most lenders will check your credit record with reporting agencies. Bad credit can be an obstacle in obtaining a loan. If you have some credit issues your application may be rejected.
The law on various payday or cash advance loans states that borrowers must be very familiar with the Truth in Lending forms that legitimate lending companies must provide for any transactions for 24/7 installment loans. Lenders should also give loan applicants enough time to take a look at and totally understand the said information.
In several states, lenders offering 24 hour installment loans may have additional requirements or prerequisites. For instance, some personal loan lenders do not accommodate applications from borrowers with an outstanding loan. There are instances also where the lending agency requires that a specific period of time should pass since the borrower settled another loan before he or she can submit an application for another loan. Note that lending institutions may have various requirements according to the state laws on payday loans.