When you’re in desperate need of money, following a time-consuming procedure and waiting for the money to be credited to your account would be your last choice. Many people who find themselves needing instant cash despise traditional loans for this reason. The good news is if you need instant cash and can’t wait for too long, payday loans would actually help. It’s also a relief that there are so many online payday loan lenders, which makes it a lot easier to acquire a payday loan. So, here’s everything you need to know about payday loans online and how they work to help you with your urgent need of cash.
What are Payday Loans?
Payday loans are a small amount of money that you get for a short duration of time. It’s known as a payday loan because the borrower is usually supposed to pay back the money as he receives his next paycheck. Since the amount of money that the lender credits is small, it’s not as difficult to pay the loan back once the borrower gets his salary.
Payday loans are also called no credit check loans since almost no lender would check your credit score to provide you a loan. This is also one big reason why payday loans online are becoming increasingly popular. Payday loans can be acquired by almost anyone, and the likelihood of being rejected is quite low.
How can you acquire a Payday Loan?
The process involved in applying for a payday loan and getting it approved to finally getting instant cash is an easy and convenient option. You just have to follow some easy steps that are given below. Once you complete the process, you can expect to have instant cash within 24 hours.
- Look for a lender
You can either go to the bank or look for a reputed online lender, like Captain Cash for payday loans. Going through their website and reading their policy, terms, and conditions would give you some idea about how they provide payday loans. While almost all lenders ask for the same documents and have the same procedure to follow. If something is different, they will let you know.
- Fill the form and provide documents
Once you know what documents you’re supposed to provide the lender, you can initiate the process by filling the online payday loans form that you find on the website. Filling the form won’t take much of your time. Once done, you have to upload the needed documents. Most lenders ask for photo ID proof, employment proof, and proof of income. They may ask for 2 months of your bank statement, which gives them an idea about your transactions.
- Sign the agreement
After submitting the application form and all the required documents, you’re supposed to sign the agreement. If you fill the form online, you’re also supposed to sign the contract online. It’s also important that you go through all the terms and conditions before you sign the agreement. Read the document carefully and pay attention to every point before you sign.
- Wait for approval
Once you submit all the documents, fill the form, and sign the contract, it’s the lender’s job to assess all the documents and details. This typically takes a few hours, which is a little time when compared with conventional loans, which take weeks to be approved. The lender would go through your documents and contact you within a few hours to let you know if the payday loan has been sanctioned.
- Get cash
Since payday loans are also known as instant cash loans, it only makes sense when the lender transfers the amount of money to your account without taking too much time. After going through the documents and deciding to provide the borrower with a payday loan, the lender transfers the money to the borrower’s account, and this only takes about 24 hours. And once you get the money, you’re free to use it for whatever urgent reason you needed the cash for.
Benefits of Payday Loans
In recent years, more people look for either banks or online payday loans. Part of it is because payday loans have been advertised quite well. However, this has also garnered more attention from people, and now, people realize the clear benefits of payday loans. With that said, here’s why payday loans are a great option.
- You get instant cash
A payday loan takes the least amount of time for the request to be processed and for the money to be credited in your account. Once you fill up the form and provide all the required details, the lender would follow a quick and simple procedure to check your application. Even if the lender takes a few hours to process your request and transfer the funds, it rarely takes more than a day for the money to be transferred. This very nature is one big reason why people who need money urgently prefer payday loans. And since there are also many reputed lenders on the market, like Captain Cash, it’s a constant battle among lenders to transfer the funds as soon as they can to stay on the top.
- It’s super convenient
Online payday loans make the whole process of acquiring instant cash even more convenient. All you have to do is fill the form online, upload all the docs, sign them, and wait for the lender to send you money after providing all the needed details. The application form isn’t a lengthy one; you’d only find fields that actually make sense and are relevant.
You can sit at your home or office- it doesn’t matter where you are or what you’re doing. The convenience of being able to fill the form from just about anywhere without having to drive to a specific location is one big benefit of payday loans online Canada.
- Least number of requirements
While one reason why conventional loans are not preferred in emergency situations is that they take a lot of time, another major reason is that you’d have to provide collateral. This becomes a headache for people who only need a small amount of money. However, payday loans only require you to provide a photo ID proof and a document that proves that you have a stable source of income. This is to make sure that you can pay back the loan amount along with interest. Given you are above 18 years of age and have a permanent job, almost no lender would deny giving you the loan.
Furthermore, unlike traditional loans, the lender won’t be checking your credit scores. This is why for people who might have a bad credit score, payday loans are the most beneficial means of acquiring cash.
- You can protect your credit scores
One thing with payday loans that most people view as a disadvantage is having to repay the loan and interest amount too soon. A typical payday loan requires you to pay the loan back as soon as you get your next salary. When you look at it more carefully, it’s actually a benefit.
When you get your salary, you have money in your hand, and this becomes the best time to pay back the loan. That way, it gets easier to keep your credit check out of harm. However, although installment loans give you much time to repay the money, you never know if you’d be in a cash crunch in the future and fail to repay the amount.
- You can also acquire a higher amount
When you apply for a payday loan for the first time, you can only get a small amount of money. However, as you pay the loan amount back on time and again apply for a payday loan, over time, the lender may increase your range based on your salary and whether you pay the loan back on time. So, if you’re expecting to get a higher amount through payday loans, this might be possible over time.
Why is it better than going to the Bank?
Online payday loans are a better solution than going to the bank. First of all, the most apparent reason is that you don’t have to travel all the way to the bank and wait in the queue if there’s one. You don’t have to worry about being time-bound and keeping an eye on the closing time of the bank and matching your schedule with that of the bank.
It would only take you a few minutes to fill an online form. You can do it at your own convenience. This is why these days, people prefer online payday loans that are provided by banks. Also, banks are not that flexible in their approach. You can also negotiate with a lender if you want to get the deadline for repaying the loan extended. While you’d have to pay a higher interest rate in that case, you won’t have to worry about money being deducted from your account without your knowledge.
How can you use Payday Loans?
Payday loans are a small amount of cash and can be used in various ways. If you know that a certain situation requires only a small amount of money and you can pay it back on time along with interest, you can use a payday loan confidently. With that being said, you can use a payday loan in any situation that demands a small amount of instant cash.
However, that’s not the limitation. Most people would use a payday loan to take care of hospital bills in case of an emergency when they have no money. People also use this money for paying bills or paying a monthly installment for an expensive purchase.
If it’s not an emergency requirement, many people also acquire payday loans to be able to pay for a sudden plan. Whether it’s a trip that your friends plan or you’re finding a great deal on a phone, you can use a payday loan to pay for the trip or phone for the time being when you’re out of cash.
What’s the Loan Repayment Process?
The loan repayment process is just as simple as it is to get the loan in the first place. Once you meet your financial requirement with the help of the payday loan, you have to wait until you receive your next paycheck. When you do, you’re supposed to pay the loan amount and the interest that the lender charges. The deadline for loan repayment is positioned such that it is soon after you receive your salary. This helps in making sure people have the needed amount of money so that they can repay the loan amount without a problem.
One tip that’d help you in paying back the loan amount on time would be only using the amount of money that is needed. If you can save up a chunk of the loan amount, it would only be helpful in minimizing the sum of money you pay from your next salary. Since payday loans are for emergency cash needs, trying not to be too extravagant when spending this instant cash would be a wise decision.
Payday loans online work quite well for people who are in dire need of cash. When you make sure you manage your finances well for the next month, repaying the loan amount that you get wouldn’t be much of a hassle. However, when you fail to do so and keep postponing the date to pay the money back, the interest rates shoot up. Thus, when acquiring payday loans, committing to pay the money back on time is a crucial thing.
Furthermore, when looking for a lender, make sure you do your research. There are too many loan sharks out there who can trap you. Look for a reasonable yet realistic deal in order to make sure you’re borrowing money from a reputed lender. Read through the terms and conditions and don’t hesitate to ask questions if you have any.