Have you been considering the use of an online payday loan to help you overcome an unexpected expense or sudden shortfall in income? If so, there are a few things that you should know about qualifying for and repaying these short term loans.
What You Need To Know About Qualifying For An Online Payday Loan
When applying for a payday loan online, you will need to supply a variety of information, including:
- your full legal name
- your address
- your employers name, address, and telephone number
- your bank account number and routing number
- proof of income
- contact information for a few personal references
After supplying this information, the lender will verify that your bank account is valid, that your paycheck is regularly direct deposited into this account, and that you are still currently employed. In some cases, verifying this information will require the lender to contact your employer or your personal references.
Once all of this information has been verified and you have signed your loan documents, your payday loan can typically be transferred directly into your checking account within a matter of a single day.
What You Need To Know About Repaying Your Loan
Typically, your payday loan will be due in full on your next payday. On this date, you can expect your lender to make an automatic withdrawal from your checking account. If the funds are unavailable on this date for any reason, you will likely be charged a return check fee by both your lender and your bank. Future unsuccessful attempts to withdraw these funds from your account may result in additional charges as well. Therefore, it is extremely important to ensure that you will have the money available to repay the loan in full prior to accepting any online loan offers.
While you are not required to submit to a credit check in order to obtain a payday loan, these loans will often be reported to all major credit bureaus if they go into a default status. This means that you can in fact do more damage to your credit by failing to repay these loans according to the original loan terms. The good news is, most lenders offer a variety of payment arrangements that can be made in order to help you repay your loan in a timely fashion even if something prevents you from complying with your original loan terms. For instance, you may be allowed to roll the loan over into a new loan by simply paying off the financing fees. However, in order to make use of these repayment options, you will need to remain in contact with your lender rather than trying to simply avoid the debt.
To learn more about obtaining an online payday advance, contact a company like USA Cash Services.