Getting Payday Loans Online

Payday loans online offer an easy way to get cash in an emergency. The cash advance industry makes it very convenient for people to get quick cash when they need it most. With so many companies offering online loans, most people with a sourced of income can get money in under 24 hours.

The Requirement for Getting a Payday Loan

There are several requirements for getting a loan. A person has to be 18 years of age or older and be a citizen or legal resident of the United States. The borrower also needs a valid email address, phone number and a bank account. There are also income requirements. Some lenders require a regular income of at least $1,000 a month, but other lenders accept a monthly income as low as $800. A steady job or social security benefits are both acceptable sources of income. One requirement that most people worry about is a credit check. Payday lenders don't do credit checks.

The Application Process and Getting the Loan

Payday loans online are very convenient because all you need is access to a computer. With a local payday center, a person has to travel to the location and then wait in line to talk with a representative. Most centers offer only a few loan options and a borrower often accepts any terms available because he has already invested the time and energy.

With online payday loans, a person fills out a simple online form. Completing all the required information takes just a few minutes. Approval for the loan is also fast. At that point, the borrower gets an online list of several lenders that are suitable matches. The borrower reads the disclosure information about each lender. She learns about the interest rates and fees that each lender charges, and she learns about the repayment terms.

Once a person chooses a lender, she signs the contract electronically. In less than 24 hours, the lender deposits the money into the borrower's bank account. Loans are available for up to $1,500.

Repayment Terms

Most lenders give a borrower two months to pay back the loan. A few provide loans for just one month. It is important to carefully read the loan agreement because signing it online. In many cases, the lender automatically withdraws the money and corresponding fees and interest from the borrower's bank account on the due date.

A cash advance is a great way to get money to pay an unexpected bill or for emergency medical expense. Payday loans online make it a simple process for getting quick money during a difficult financial time.

Can You Apply for a Payday Loan If You Are Self Employed?

Your employment status is a huge contributory factor in whether or not you are accepted for any form of credit. Arguably this is even more important within the payday loan field, where the salary is used to guarantee the amount being borrowed. Therefore, if you can't demonstrate your earning potential, rejection is often assured.

Unfortunately, this is often the case for many self-employed workers. Due to the variable nature of your income when you're reliant on clients and temporary contracts, no two months are the same. So whilst you may actually earn more than enough to meet the requirements of a payday loan lender (this is often around £750 per month), this wage cannot be guaranteed.

This can make it difficult to borrow from any source, although you should still be able to approach your bank and explain the situation in more depth. As payday loan companies and other short-term lenders need to be able to recoup the money within a matter of weeks, they are far less interest in your financial history. Instead they are far more concerned about the here and now. This is why they allow people with decent salaries and poor credit ratings to get access to funds, where most lenders certainly wouldn't.

There are exceptions to every rule of course, so you may be able to find a payday loan company who is able to provide the funds you need. However, due to the risks and factors mentioned above, these are few and far between. If you can demonstrate your earnings over a longer period and have evidence of future employment - including contracts and other agreements - self-employed workers would often be advised to approach banks in person and discuss the situation.

As previously mentioned, the fact that payday loan companies often can't accept self-employed individuals is not a slight on them or this kind of work, it is simply an assessment of risk. No lender wants to provide cash to people who are likely to default when it comes to repayment. Whilst having your own company or working on a contractual basis doesn't make you any more likely to run off with the money, it does make it much more difficult for the lender to guarantee your salary.

Without this kind of reassurance, most companies will reject applications automatically. Whilst this can be irritating, it can also save you a great deal of financial grief. As payments to contractors and the self-employed are often a little more sporadic (i.e. you'll have encountered a number of situations where you haven't been paid on time for work completed, sometimes not even at all), the last thing you want is to have more debt to worry about.

If you were to take a loan and then find yourself in a position where you couldn't repay it as agreed, an extra month's interest would be applied to the total amount along with a charge. This can be hugely damaging and could have a negative impact on your financial status for months.

Are Payday Loans Available to People Who Get Paid Weekly?

Payday loans are one of the most versatile and accessible forms of borrowing currently available to consumers. This means that, unlike other forms of credit, they are open to far more people - even those who are paid weekly.

However, this isn't to say that all lenders will have the same policy when it comes to the frequency with which an applicant is paid. Some may still only accept those who receive their salary on a monthly basis, potentially excluding those who get the money delivered to their account on a more regular basis.

The reason why this is such an issue for lenders is that they have to be reassured that you'll have the money available on the agreed date. Therefore, anybody who receives a monthly salary should, theoretically speaking, have a significant amount available on the date that they're paid. As a result, they should easily be able to cover the loan amount, which will be restricted to a few hundred pounds for anybody applying for the first time.

Conversely, those who receive their wages on a weekly basis can't offer this same guarantee. Even if they enjoy a good few pay days before the loan repayment is due, this money won't necessarily be in the account when the time comes. This piles risk onto the lender, more than some are willing to accept. As a result some will choose to simply reject applications as part of their terms.

If you are paid weekly, then it's important that you take the time to see what is on offer with the payday loan market. Just because one lender might not be able to help, that doesn't necessarily mean that they will all be the same. Policies can vary wildly between the companies, therefore people from all backgrounds stand a chance of getting the money they need.

To quicken up the process a little, you might well wish to consider using a broker. Often including dozens of individual lenders, each broker has access to a range of companies, each of which has different terms, with some being more flexible than others. This will vastly improve your chances of being accepted too, as your application will be automatically placed under the noses of all lenders, which can only help your odds of getting through to someone that can help.

If you prefer to do the research yourself and are scouring the Internet to find decent value and lenders who have flexible lending policies, make sure you read through their individual borrowing policies before applying. Whilst you shouldn't damage your credit score or chances of being accepted elsewhere, applications do take time and they can become frustrating and disheartening - particularly if you find yourself rejected and you're not sure why.

So whilst it is entirely possible for those who are paid weekly to obtain a payday loan, you may just need to spend a little more time securing the best deal. Fortunately there's plenty of choice out there in the market so you shouldn't come unstuck.