What are payday loans for? Am I eligible for an instant payday loan, and how much can I actually borrow? These are the most common inquiries of people who are not used to borrowing fast money from payday loans. They are a little bit wary that payday loans can really be processed in a few minutes. Where in this world they asked they can get money within that short period of time? But this is now the age of the internet. The things we previously could accomplish in days can now be done in seconds. Truly, payday loans are processed online with amazing speed. And this is how it is carried out.
It is very simple
Open your personal computer or other gadget with internet connection and use your Google to locate lenders of payday loans. Fill out their application for payday loan and submit by clicking the corresponding button. If you don’t have internet access, use the telephone and call direct lenders of payday loans. They have trained assistants to handle your application by phone.
Regardless of the mode of application filing you will follow (online or by phone), conduct first a simple comparative study of the lenders’ offers. Concentrate on the terms covering duration and interest of the payday loan. These are the most important features of the loan you will be contracting.
Prepare also a list about your personal circumstances and financial data. It is important that the information you supplied to the lender are accurate and true. This will greatly help in the faster processing of your payday loan.
Done in five minutes?
There are many money lenders of payday loans who promise to approve your payday loans in five minutes. Although this is doable because of the advances in information technology, expect the same day action so as not to be disappointed. The data that you fed on the online application form or relayed by phone can be verified instantly. Lenders have direct access to credit bureaus regarding your credit standing with other lenders. Your bank account, status of citizenship, work related information, especially your net paycheck, are within easy reach by the lender.
If everything is in order, there is a probability that even in just five minutes; a decision can be rendered on your loan.
You don’t leave home
The other convincing point of payday loans is the convenience it provides. You can file your application form from your house, where you have the telephone or an internet connected computer. There is no need for you to leave your room to submit it. This also applies when the proceeds of the payday loan is released. It is directly wired to the bank account you provided on the loan application form. This is not possible with traditional bank loans where your personal appearance is a requirement.
However, the big disadvantage of payday loans for the borrowers is its high cost of interest. It can run to more than 600% in the U.S. and could exceed 4000% in the UK. This is one reason why many are being discouraged to borrow from this kind of lending opportunity. It does not actually help the borrower. Instead, the borrower is helping the lender to thrive by raking big profits during their financial calamities.
Dangerous if not managed well
If you are borrowing from payday loan lenders, don’t splurge on your spending. You may not know it that you are falling into a debt chain pit. Prepare a plan to get out of it immediately!