Instant Payday Loan: What Is It And How Does It Work
What is Instant Payday Loan?
An instant payday loan is a short-term unsecured loan for a small amount of money. You don’t need a deposit to take it. Typically, the terms of such a loan – are from 14 days to a month. The amount that can be borrowed is no more than $1,000, but most often it is around $500.
An instant payday loan is great for emergencies like car breakdowns, medical bills or rent, and urgent purchases of essentials that were not planned in your budget. It’s easy to get and doesn’t require an excellent credit history.
How does Instant Payday Loan work?
In fact, with instant payday loans, everything is quite simple.
First, you choose a lender: compare the conditions offered to you, and look for the most beneficial for yourself. After that, fill out a loan application and submit it. Usually, filling out an application does not require many documents, and it takes only a few minutes. You can fill out an application online and in the store.
The ball goes to the side of the lender. A lender reviews your application and sends a notice of loan approval if everything is in order. Often it takes a couple of minutes. It’s important that payday lenders usually don’t do a hard credit check, so these loans don’t affect your credit history.
After approval, you will receive a loan agreement, which you need to read. Then, if all its points suit you, you can safely sign it. Usually, money is credited to the account you specified during the day, maximum – the next business day.
From the moment you receive the money, the term of the loan begins. It must be paid in one installment, plus interest. The lender will often ask you to provide access to your account to withdraw money on the due date automatically. You just have to make sure that the required amount is in the account.
What Do You Need to Get an Instant Payday Loan?
In fact, the requirements for an instant payday loan are much more affordable and simple than, for example, for a personal loan. You do not have to collect a lot of documents for the sake of a small cash advance.
- Reach 18 years old.
- Verify your identity. For this, a government-issued ID, such as a driver’s license or passport, will do.
- Social Security number.
- Confirm your income.
- Have an active checking account and email (in case you apply online).
Instant payday loans are an easy and fast way to get a small amount of money. They do not affect the credit rating in any way; moreover, they can be obtained even by those whose credit rating is poor. A payday loan does not require collateral and many documents; you only need to verify your identity and income.
The most important thing is to be sure that by the time the loan is repaid, you will have the amount you borrowed and the interest on the loan in your account.