Payday Loans

How Does An Instant Payday Cash Loan Work? Where Can You Borrow One From?

When unexpected expenses occur and you do not have enough money to meet those expenses while there are still two weeks to go before you can get your next salary pay check, an instant payday cash loan may look like an easy and quick solution. As the term itself suggests, these loans are approved instantly and the money you need is transferred to your bank account either the same day or the next business day. You might be wondering how de they verify the details submitted by you so fast. Following are some key points that will help you understand viagra price how these cash advance loans work and where you can borrow them from.

Verification Through Teletrack

Instant payday cash lenders often use the services of Teletrack agency. This agency maintains credit records of consumers in an unconventional way. Do not confuse them with credit

bureaus. In a simpler way, you can say that where conventional lenders check your credit report to determine your eligibility for a loan, unconventional lenders like payday loan companies check your Teletrack report to determine whether they should issue a loan to you or not. Besides that, your Teletrack report also makes it very easy for them to verify the details provided by you in your loan application.

Approval Rate Is Over 99%

It is very important for you to understand that the main objective of lenders behind checking your Teletrack records is not to determine how risky an applicant you are, but to determine whether the information supplied by you related to your employment, residence and bank account is accurate and complete. Besides that, a Teletrack report also helps them to find out whether you are a legal US citizen and meet the minimum age requirement (18 years).

Regular Income Is More Important Than Employment

It is a misconception that instant payday cash loans are specific lending programs meant for salaried individuals only. In reality, anybody who makes a certain

minimum amount of regular monthly income and has a more-than-6-months old valid bank account can apply and get approved for these loans. It means even self employed professionals who can submit proof of regular income can qualify for an instant payday loan. In fact, if you are not working at all, but are receiving a certain amount of money every month in your bank account, payday lenders may consider that money as a regular monthly income. For example, it can be alimony payments that you are receiving on a monthly basis. Instant payday loans can be issued on that basis also.

Type Of Bank Account

What is more, even having a checking bank account is no more a mandatory requirement. If you have a regular source of income, you can apply and get approved for an instant payday cash loan even if you have a saving bank account only.

Are There Better Alternatives To Instant Payday Loans?

There are plenty of them. All types of payday loans cost you an extremely high amount of money in terms of interest and other charges. Besides that, such loans also trap consumers into a vicious cycle of debt. The highest rates charged on conventional loans are usually not more 28% per annum. Even pawn loans charge interest up to 180% only. But in case of instant payday loans, the range of interest rates starts from 390% and it can go as high as 1980% per annum (such as, in the state of Missouri). Therefore, no matter how tempting the advertisements for these loans may look like, you are strongly recommended to do your calculations thoroughly. Some possible payday loan alternatives may include working overtime, getting a daily-pay second job, requesting a part of your salary in advance from your employer, getting a short term loan from a credit union and others.

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