What is a Payday Loan?
A payday loan is a type of short-term loan where you can apply and receive an online approval in just a matter of minutes. This is due to the low loan amount that is ideal for financial emergencies.
The term “payday” refers to the expectation that the loan will be paid back on the borrower’s next payday schedule. In reality, lenders usually give borrowers a month to repay off their loan.
With that being said, these loans are offered by countless direct lenders online here on Citrus North.
Applying for a Payday Loan
Applying for cash advance loans is a simple process.
With that being said, all borrowers need to do is select a lender and go to their website. Almost all payday lenders will have an online application form. The loan request application form will ask the borrower details about their employment and income.
The vast majority of loan applications receive approval instantly. As a matter of fact, having a bad personal credit score is not a problem. Direct lenders will only perform a soft credit check, also known as a “no credit check“.
Top 3 Reasons why your Loan Application is Declined
It is worth noting that some people will have their application declined. The situations that result in declined applications are as follows:
- Borrowers under the age of 18 will be declined as they cannot legally sign a contract.
- People who are currently bankrupt cannot apply for these loans due to legal issues.
- Applications from unemployed people are declined as they have no means to pay back the loan.
Once the fast loan gets an approval, the lender will ask borrowers to send them copies of their ID and bank statement. Lenders use these documents to check that the information on the loan request application form is correct.
If all goes well, applicants will receive the money in their bank and/or checking account within a few hours. Take note that those who apply at the end of the day may have to wait until the next day to receive their funds.
What Happens if I Pay Late?
Borrowers should do their best to make full repayments before or on the maturity date (repayment date). Cash advance lenders are generally very strict about receiving timely repayments.
Late repayments usually result in higher interest rates and penalty fees. If a borrower cannot make their repayment on time, they should contact the lender and advise them of their circumstances.
What Happens if I Miss a Payment?
Missing a payment without informing the lender may lead to the lender hiring a collection agent. This is undesirable as collection agencies charge borrowers high fees.
Who is Eligible for a Payday Loan?
Payday loans are not for everybody. This is because direct lenders only lend small amounts of money, they cannot be used for large purchases.
People who want to buy a car or house will be better off approaching a traditional lender. Traditional lenders will give borrowers a few years to pay back their loan.
Given the following pointers above, you can apply for a loan with Citrus North anytime. Let us help you find to a trusted direct lender and receive money within the day. Apply now!