How Do Same Day Payday Loans Work?

same day loansUnforeseen situations like personal injuries, car accidents or natural disasters can suddenly leave you in need of some extra cash. The current state of the economy has made the process of obtaining loans from conventional lenders extremely difficult. Most lenders do not give loans when you are in need of emergency cash. However, there’s a loan type called a same day payday loan, which is always available to almost everyone, regardless of credit history. Same day payday loans are defined as small, short-term loans which help to cover the expenses of the borrower until he or she gets the next paycheck. The other terms used for a same day payday loan are paycheck advance, quick cash loan or cash advance. You can obtain instant cash of any amount between $100 and $1,500 by applying for cash advances.

How Does the Process of Obtaining Same Day Payday Loans Work?

The process of applying for same day payday loans is remarkably simple. You can expect to receive the loan amount in your bank account almost immediately after completing the application procedure. The best feature of a payday loan is that you can apply for it online without leaving the convenience of your home or office. You can not only get your cash advance approved by submitting an online application, but you can also repay the loan online through an automatic repayment method. An automatic repayment method repays the loan amount directly from the borrower’s bank account.

You already know that the process of getting same day payday loans involves some fast and simple steps. The requirements for qualifying for these loans are:

  • You will have to be at least 18 years old
  • You should be a resident of the United States
  • You must have a valid checking account
  • Your minimum monthly income should be $1,000 or more

If you meet the above mentioned qualifications, you will definitely get your  same day payday loan application approved. For that, you will only need to fill in the online application form with personal information like name, phone number, email address, bank account number, etc. Online approval of a cash advance usually does not take more than an hour and you will see the amount in your bank account within a maximum of 1 to 2 hours.

There are also several online lenders who offer payday loans even to unemployed individuals. If you are unemployed and looking to get a cash advance application approved, you will have to be 18 years of age or more and have a bank account that is at least 90 days old. The rest of the application procedure for obtaining  same day payday loans for the unemployed is exactly the same as described above.

Another promising feature of  same day payday loans is that they can be obtained without undergoing any credit check. So, if you have a poor credit rating and need loans for bad credit, this loan type would be one of the most useful options for you. Unlike other loans, which only get approved after thorough credit checks, the lenders who offer payday loans consider your paycheck as security. Additionally, this poor credit loan can also help you in improving your credit score. You can expect an increase in your credit score after successful repayment of payday loans.

Common Myths about Same Day Payday Loans

Due to some unscrupulous activities carried out by fraudulent credit lenders, people have developed several misconceptions about fast payday loan businesses. You must be aware of those misconceptions to make use of these fast loans. The pointers below will introduce you to some of the common myths about same day payday loans.

Myth 1: Businesses that offer fast cash loans are scams

The fact is that every state in the United States requires the lenders to pass a certification test for obtaining the license of issuing fast advance loans within its borders. As these lenders are regulated by government policies, they can be in serious trouble if they get involved in any fraudulent activity. So, it is extremely unlikely that a licensed fast cash business will turn out to be a scam.

Myth 2: You will need to undergo a credit check for getting same day payday loans online

This is completely untrue. Almost all cash advance businesses, which also include the online lending agencies, do not perform credit checks for issuing approvals for same day payday loans. Your chances of getting a cash advance do not depend on your credit rating. You can obtain cash advances even with bad credit history.

Myth 3: Same day payday loans providers can worsen your debt

The fact is exactly the opposite. A payday loan is one of the most useful tools for lessening debt. Moreover, if you pay back these loans on time, it will show up on your credit report and you credit score will increase.

Myth 4: Same payday loans come with hidden interest rates and fees

This is the most prevalent misconception regarding same day loans. However, none of the payday loan businesses have the authority of hiding interest rates or fees. The Truth in Lending Act requires all businesses (online or offline) that offer cash advances to disclose their financing fees, interest rates and future possibilities of making amendments in their fees and rates. All these facts regarding the company policies have to be provided either on the cash advance business’s website (for online providers) or in writing (for offline providers). As a borrower, you should read the entire content of the website or the written agreement while applying for same day payday loans. This will allow you to get acquainted with all their terms and conditions as well as their fees and interest rates before you sign the payday loan contract.

Myth 5: Payday loans are only meant for individuals of low income groups

It’s true that sudden need of extra cash for meeting unforeseen expenses is more common among people of low income groups. However, that does not stop individuals of average and high income groups to enjoy the benefits of same day payday loans. Anyone, irrespective of their income, can apply for payday loans.

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