A fast payday loan is a quick solution to an unexpected financial hardship. These loans are short term, low rate loans. Because fast payday loans carry high penalties for late payment, borrower’s should not borrow more that they can afford.
Credit is not an issue when applying for a fast payday loan. Proof of legitimate income is the most important qualification when applying for a fast payday loan. It is necessary to show proof of income in order for the lender to decide whether or not an applicant will qualify. The lender also needs the proof of income to determine how much the applicant will be able to borrow. The lender will not allow an applicant to borrow more money than they make.
There are several forms of acceptable income when applying for a fast payday loan. There are also a couple forms of income which are not acceptable. State welfare checks are not allowed, nor are social security checks in another person’s name.
In order to be approved for a fast payday loan the applicant must also have an active bank account. This is because when the applicant is approved for the loan, the money will be direct deposited into their bank account. When the loan becomes due, the lender will automatically withdraw the funds from the borrower’s account. Most fast payday loan companies do not deal with checks when lending or receiving money.
As with any loan, there are interest fees to be paid along with the full amount of the loan. The interest fee does not depend on the borrower’s credit, it depends on how much money was borrowed. The more money borrowed, the higher the interest fee will be. There are also penalties for late payments. If the funds are not in the account when the lender attempts to withdraw, the borrower will be required to pay a fee. Most fast payday loan companies will automatically give the borrower an extension. This extension is usually a week. Each time the lender allows an extension, the borrower will be required to pay an additional interest fee. After several weeks of non-payment, these fees can build up.
Fast payday loans are sometimes the only solution to get a person out of a unexpected financial hardship.