If your budget falls short this month and you need cash to help you get by until your next paycheck, a three-month payday loan might be your solution. These are small cash advances secured with your personal paycheck and held for future payment. If you are cash-strapped and look for a quick fix, a payday loan can be the best option to sort out your short-term money problems.
How do Payday Loans Work?
The first step is to determine how you would like to secure a loan. Then, you can choose to apply either online, in a store, or over the phone. The following step is to complete a loan application. To qualify, you need to meet the minimum age requirements, have a steady source of income & an open checking account in good standing, and a valid ID. Once your application is complete, you will get your lending decision in a little while. If you apply for your payday loan online or over the phone, you may get your requested cash directly into your bank account.
The last step in the payday loan process is repayment. Payday loans are usually payable in full on your next payday. You may have multiple options to pay off your 1-hour dollar loan. You can pay by debit card, cash, automatic payment from a bank account, or post-dated check. Anyway, you should pay the principal amount plus fees in a single price tag on its due date.
Frequently Asked Questions About Online Payday Loans
How Much Can You Get with 3 Month Payday Loans Online?
The loan amount you can borrow mainly depends on your state's laws and, of course, your financial state. Most lenders offer payday lending cap amounts ranging between $100 and $2500. However, you don't necessarily need to qualify for the largest amount offered by your lender or allowed by state law. The lender may consider your income while he decides whether you qualify for a loan or not.
Do You Need a Good Credit to Get a Payday Loan?
Most payday lenders don't run a traditional credit check to determine your borrowing ability, aka creditworthiness. This means that you can take out quick cash advances irrespective of your bad or no credit history. However, eliminating hard credit checks doesn't mean you are guaranteed to qualify for a loan without meeting eligibility criteria.
Does Paying Back Paycheck Loans Build Credit?
Paying back an emergency loan won't build your credit since most payday lenders don't report on-time payments to major credit bureaus such as TransUnion, Equifax, and Experian. Thus, neither obtaining nor paying back a payday loan over an agreed length of time helps to build credit.
What if You Can’t Repay a Payday Loan?
Depending on the state of your residence and the lender you deal with, you may be charged extra money for late payment or non-sufficient funds (in case of automatic withdrawal). Or otherwise, you can extend your loan for another month by paying extra in an extension fee. Please be informed that if your lender is unable to get back the borrowed amount, your loan can be sent to a debt collection agency.