You have no credit history and yet you wish to get a loan. How will you go about doing it? The answer is quite simple. Getting a payday loan is probably one of the simplest ways to get a loan. It is also known as a cash advance and this can be deposited directly into your bank account after the approval. All of this takes one working day. These payday loans are usually for a small amount not exceeding $1,500 and no credit check is needed. This could be an advantage especially for those that have neither a credit nor a bad history and may still get a loan fast.
The whole application process is also quite simple. You can go in-person and apply for the payday loan at any storefront location or online. It’s recommended however, to first gather all the information that would be required for the application and be ready before applying. You will require your social security number, driver’s license, personal identification in some form. You would additionally require the contact of your supervisor or the human resources personnel and their phone numbers. Income proof, such as a paystub, income tax returns, or a bank statement would be required. Lenders will need this information to process the loan and give an approval,
The amount of the loan that would be authorized would depend on your proof of income and the employment status. The loan amount will either be equal to or less than one paycheck and hence it is called payday loan. This is an ideal loan especially in case of an emergency. After the loan approval the funds will be released by the lender and it would be directly deposited into your bank account. You may receive cash on the spot if you apply for the loan in person.
The interest on these payday loans, and the finance charges as well, are much higher compared to personal loans that are given by a credit union or a bank. You will have to ensure that this loan is paid back quickly and be sure that you can handle the excessive finance charges and interest as well. If you are not careful then you could get trapped due to these high charges and get into a vicious cycle where you would be unable to pay back the loan.