A payday loan is known by different names, for instance, cash advance loan, deferred deposit loan, payroll advance loan, paycheck advance, payday advance and so on. A payday loans is a particular form of loan that is offered for a small time period to deal with your urgent spending requirements. These loans are typically due for repayment at the time when you receive your next paycheck. A payday loan can help you if you experience difficulties related to unforeseen expenditures or bills prior to receiving your next paycheck.
In simple terms, a payday loan is secured by your future paycheck. These loans have garnered significant popularity over the past few years. Against lending you the money till your next payday, the lender would ask for a fee.
The majority of storefront locations necessitate you to offer them with a physical check that would act as guarantee for the payday loan. If you qualify for such a loan, the loan amount would be electronically deposited into your savings or checking account. You can get the loan on the same day or the following day and it depends on your lender and your place of residence. You can obtain from $100 to $1,500 in the form of a payday loan and you don’t need to fax any documents.
Prerequisites for a Payday Loan
Becoming eligible for a payday loan is not so difficult. You only have to fulfill the following criteria:
- You are presently employed (or have a regular source of income)
- You earn $1,000 every month as a minimum
- You are 18 or over, an American citizen and have a checking or savings account in your name
- You are not working for the military
- Check bounces, bankruptcy, charge offs and other credit difficulties can’t hinder you in getting a payday loan.