How It Works

Many of you may have heard about payday loans or another name that may be recognizable is payday cash advances, but you are not one hundred percent clear on how they work. Here is a quick explanation on what these type of companies are going to be looking for before saying yes and handing you some money.

Minimum requirements will include information such as this listed below:

  • Minimum acceptable monthly income is to be $1000
  • Proof of a valid checking or savings account (does not have to be both)
  • Valid phone number (landline or cellular)
  • Must possess a valid social security number
  • Minimum age requirements is 18 years old
  • All of the listed requirements must be met because there are strict guidelines that need to be followed by the payday advance industry. If you can furnish all required information than the rest of the process is quite simple. There are online applications that are available but one can also go into a payday loan location and fill out a quick 5-minute application. If you have already been pre-approved, then you basically just have to sign the agreement, either electronically or in person, and then you are ready for approval! If for some reason you have been declined, the place that you are currently applying with may be able to suggest another payday lender that would better be able to help you.

    Once the application has been approved, money will then be either handed to you or deposited into your account within a 24-hour time span. As with any loan, there are repayment terms that need to be followed otherwise the next time you find yourself in a bind, that lender may not be able to help you out. Repayment terms are generally very short and expected by your next pay period with little interest.

    This is just a quick overview on how payday loans and payday cash advances work. The rules do vary from state to state but it is certainly worth looking into if you are having a little financial difficulty and have an income. The approval rate is much higher for these type of loans since they do not really conduct any sort of intense background check. Payday loans are also a great option for those individuals who do not have any collateral to put up for a loan or those who have lower credit scores.