For those individuals that need extra money “right now”, a direct deposit payday loan is the way to go. In the past financial companies that offered payday loans would issue a check and the check would then have to be presented to the borrower’s personal financial institution for processing. Processing of the check could take 2-5 business days, making the borrower wait to have access to their loan proceeds. For many, this delay defeats the purpose of the payday loan, which is for immediate cash fast. Lenders have recognized this problem and have begun offering a direct deposit of the funds into the borrower’s account instead of cutting an actual paper check.
How do they work?
Direct deposit payday loans are quite simple for the lender to disburse and for the borrower to use. The lender does not issue a check and the borrower does not have to wait on any check processing delays. Instead, the lender directly deposits the funds into the borrower’s account, providing immediate access to the funds. This is very beneficial to the borrower because it saves time, energy, and the loan proceeds are available in one day instead of 2-5 days.
Easy Application Process
Direct deposit payday loans usually have an easy application process, especially if done online. There are no credit checks, so even with a low credit score you are eligible for this type of loan. Once you provide all the necessary information to the lender, a quick check I done to verify your information and once approved, the money will be deposited directly into the bank account provided—usually within the same day. If you are worried about your personal and financial information being online, just make sure the lender has a secure site and is operating from an https and not an http address.
A Word of Caution
Watch out for finance companies that charge a high fee or interest rate for the quick disbursement of your funds. Shop around with several different lenders to ensure that you are getting the best deal for your payday loan.