At times it can appear almost unbelievable to send a request for a payday loan without even leaving your house and have the money directly deposited into your bank account within hours. However, direct deposit loans have become a reality.
One form of direct deposit loans online is payday loans. These loans are small short-term sums that range from $100 to $2500 and should be paid by the borrower’s upcoming paycheck. Thus the term “payday loans.” They are also called “cash advances,” “paycheck advances,” or “bad credit loans.” The latter can hint that payday loan lenders are not strict with credit scores and do not perform a hard pull before approving the borrower’s claim. Consequently, people who own poor credit scores are always welcome for small direct deposit online loans.
It should also be noted that payday loans are unsecured money and do not require collateral. Collateral is a personal asset when it is being used as financial security. For example, you may be required to use something of monetary value that you own to secure a loan. Thus online payday loan borrowers do not have to put anything up in exchange as if they were going to a pawn shop.
The Process of Getting Online Direct Deposit Loans
The century of the internet made everything much easier. The process of obtaining online payday loans is not an exception. Nowadays, there are thousands of platforms that offer online loans with little to no effort on the part of the borrower.
People in need of online payday loans should look for a website that provides direct deposit loans and select the one that best meets their needs. They firstly should pay attention to loan terms, interest rates, caps, and additional fees to choose between the websites.
After making a decision, the client should complete an online application form. For example, our platform suggests an application form that asks for some personal information from the borrowers. The information may include age, home address, SS number, source of income, and an active checking account. It is obligatory to be at least 18 years old, a legal US citizen, and have an active bank account in order to have money directly deposited into it. As previously stated, payday loans do not require a pledge; thus, our third-party lenders require the existence of an income source in order to be confident in the borrower’s ability to repay the debt.
About Online Direct Deposit Loan Interest Rates
Payday loans typically have an annual interest rate (APR) of 400 percent or higher. For example, to borrow $100, the finance charge ranges from $15 to $30. These finance charges result in interest rates ranging from 390 to 780 percent APR for two-week loans. APRs on short-term loans are even higher. Rates are higher in states where the maximum cost is not capped. However, it should be noted that seemingly higher interest rates do not usually ruin the borrower’s financial health, as the money is due within a maximum of 31 days. This short duration cannot bring huge losses or financial crises. Moreover, payday loans are the most suitable way to cover unexpected expenses and urgent bills.