How do Payday Loans Work?
What a short-term cash loan is exactly?
Short-term cash loans are comparatively small borrowings used to deal with unexpected financial situations. These loans should not be used to pay for long-term credit payments.
In general, a borrower places their loan request, describing the situation, approximate date of paying back and possible interest. The requests are completed and funds are provided. The repayment date is also agreed on, usually the oncoming payday.
The names of such loans may differ:
- Short-term cash loans
- Payday loans
- Bad credit loans
- Fast cash loans, etc.
Basically these are small loans for emergency financial situations with standard return time about 2 weeks.
The website operator simply provides a ground for pacing requests and discussing the loans and is not a lender themselves. Online loans have higher interest rate and short repayment time. All other sources of possible loans (like advance salary payment of borrowing from friends) should be tried out before applying for online loan.
What are the loan requirements?
Short-term cash loans have such minimal requirements:
- You must be 18+
- You must be employed or have a steady income source
- You must have a clean bank account active
These are the very basic requirements and every lender can place their additional ones. They will evaluate the credibility of your request’s details, your credit history and other parameters they would take into consideration. Therefore, not all requests will be fulfilled and there is no guarantee on receiving the loan.
After submitting your loan request you will be contacted by a possible lender. They may ask for additional information on each case and will take the decision on their sole discretion, depending on their personal requirements. Each loan is discussed on case-to-case basis, so rules an regulations (like interest rate an repayment term) may change each time.
We cannot guarantee your request will be answered at once, meaning the loan may not be given while it is still needed. That is why we strongly recommend to take other loan sources into consideration.
To increase your chances on receiving a loan in a timely matter we recommend providing as much clear and honest case details/personal information as you can allow. For example, giving a brief explanation of the urgent loan need add credibility to your request, while providing your official address and land phone line number helps to verify you as a reliable possible partner.
Lenders also often perform credit history check along with checking Social Security number or other relevant information from your request form. Having a poor credit history or being heavily in debt does not put an end to your efforts at once – as long as you can guarantee timely return of the loan.
This website has no role in the process of loan approval. We simply share the details you provide with several suitable possible lenders. We cannot speed up the approval process or influence it in any way, as well as guarantee success of the request.
How do I get a short-term loan?
After completing a safe and secure online loan request form your case will be added to the pool of active requests and may be answered by a lender in merely minutes! Submitting some other information via your personal email or live phone conversation may be required in the course of loan approval.
We do not determine amount of money you receive or repayment terms. Such decisions are made by each lender personally on a case-to-case basis.
If your loan requests is approved take a thorough look on loan paperwork details to avoid hidden fees some lenders may include. In case you do not understand some points in the agreement, make sure you get detailed explanations before signing the contract.
You are NOT OBLIGED to accept the loan terms you are given. If something misfits your needs you can simply re-apply your request with another lender – or work out the solution with this one.
In general, money is transferred to your bank account within the next business day after signing the loan agreement.
What does the repayment process look like?
Normally the loan repayment term is about two weeks or shorter, usually on your regular salary day. However, terms may be adjusted to a certain degree, though additional fee may be included for loan prolongation. Each lender has their own renewal policy and it is your responsibility to read and understand the loan repayment terms in full before signing the papers.
After one of the potential lenders chooses your project, you will receive their package of documents, including loan agreement terms and renewal policy. These may differ between lenders, so read them attentively and in full. Normally, there are such ways of repayment:
- Automatic repayment of the full sum
- Paying only the fees and prolonging the term
- Paying part of the sum and the interest, while prolonging the sum for additional term
In case you try to avoid repayment due to non-possibility of fulfilling it, a lender may begin the judicial proceedings on collecting the money. Therefore we strongly advise you to use short-term loans only as a measure of dealing unexpected financial issues and repaying them in time. In case you are not sure of your ability to return the money in time, please consider borrowing from friends, getting your salary paid in advance or applying for a long-term bank loan.
What is the money transfer method?
Funds will be wired to your bank account provided in the loan request form. In some cases it may happen in about an hour after signing the loan paperwork. However, this website has a huge pool of lenders available and we cannot guarantee that wire transfer will be that fast or that maximum sum will be issued. Terms differ from lender to lender and from case to case.
Please keep in mind these days also, as US bank transfers will not occur at these days:
Federal Banks and their branches observe the following bank holidays:
- New Year’s Day
- Martin Luther King, Jr. Day
- Presidents Day
- Memorial Day
- Independence Day
- Labor Day
- Columbus Day
- Veterans Day
- Thanksgiving Day
- Christmas Day
What are your working hours?
This website is merely a platform to deliver loan requests from borrowers worldwide to lenders worldwide. Therefore, loan requests are accepted 24/7 and can be approved any moment, even in several hours after applying for the loan. However, some time is needed for checking your details. Please also keep in mind that wire transfers are made only within standard banking hours.
What is the total amount of money I can get?
Commonly short-term loans operate with sums around $100 to $1000. Please keep in mind not every lender is able to provide the maximum sum at once, as well as not every $1000 request may get the full sum; approval is also NOT guaranteed.
How big the loan fees are?
We work with a vast community of reputable lenders but we have no strict rules for them. Each lender determines their own rules and regulations, including fees and terms of repayment. Please discuss this during the loan approval process and read their paperwork in full. Any questions or concerns should be addressed to the lender, not to the website operator.
What if my loan request is rejected by the lender?
We can only address your loan request to one or several lenders which suit your financial requirements most. However, each of them has their own criteria and may reject your request on various reasons. This does not lead to any infractions and you can re-submit your request for another viewing. Therefore, you ALWAYS have a chance to get the money you need.
What are the main reasons of rejecting the requests?
An urge for money can arise at any time of the day and you may try to apply for the loan at once. However in some cases loan requests are rejected. Here are the main reasons of lenders doing so:
- Working hours. Most of the lenders operate during standard working hours, meaning requests placed during the night may remain unaddressed till standard working hours. However, your request may get accepted by a person from another continent, so chances also remain.
- Direct repayment deposit. Lenders prefer to have additional guarantee of getting their money back, so having an option of directly depositing funds to their banking accounts by your employer is a huge bonus to your loan request. In case you did not check this possibility, feel free to arrange this action with your employer and re-apply for the loan.
- Too much loans. If you are heavily in debt lenders may try to avoid adding additional loan load. Try to pay off some debts if possible, this will improve your credit history and increase chances of success after re-applying for the loan.
I only have a bank savings account. What should I do?
Even a savings account has a routing number. Contact your banks to get this number and lenders will be able to transfer money to your account.
What if my only source of income is benefits?
It does not matter whether you are receiving a salary or another kind of steady income, lenders may still approve your loan request. Simply state your benefits provider’s name as your employer’s name. Use your own phone number if you do not know their number. State a number of months you received benefits for as a number of months worked.
What if I have no driver’s license at the moment?
Enter any number under which you are registered – social security number, medical insurance, passport number. Any number in any database allowing to verify you as a real person will help.
Are my details secure here?
We use the SSL-encryption to protect your personal details and funds transactions. Your details are kept safe and will not be disclosed to third parties, other than to lenders or official authorities with a court order.
Will my credit history be checked?
It is lender’s right to check if you are a reliable borrower. They will take this decision on their own discretion and will most likely check your credit history with one of the trusted services available online. However, having bad credit history does not necessarily mean your loan request being useless. If you succeed to prove your reliability as a borrower and ability to return the money on time, your loan request may be fulfilled still.
Do you need a faxing?
This website does not require faxing any additional information. However, lenders may ask you to fax some additional information to help borrower verification and loan approval. Faxing these details or not is your sole decision and you can refuse from doing it if you are not able to.