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Once you’ve tried other ways to get the cash you need to tide you over until payday, and you’ve run out of options, then you may want to think about getting a payday loan. The process is pretty straightforward, but you need to watch out for some pitfalls and understand how it all works. In this article, we'll show you step-by-step what you need to do to apply for a payday loan online. Step 1: Find a good payday loan company Not all payday loan companies are alike. And on the Internet you will find dozens if not hundreds of them. Many are reputable, but it’s easy for a dishonest person to set up shop on the Internet and scam people out of money. The biggest warning sign is if a loan company asks for payment in advance to “process” your loan application. You should never have to pay before you get the loan. Another red flag is if the application form is very short, or if the company guarantees loans to anyone who applies. Any real loan company wants to know a lot about you, so their application form will be a couple pages long. And no one who’s honest can guarantee you a loan before they see your application. Look for companies that have professional-looking websites with a lot of information about their loans and about themselves. And make sure you’re able to contact them to ask questions. It usually doesn’t matter where the company is located, but you’ll want to look for loan companies that give out their mailing address. A company that doesn’t might be hiding something. For the eight things to look for in a payday loan company, see the article “How To Find An Online Payday Lender” on this website. Step 2: Make sure you meet their requirements Once you’ve found a loan company that looks good, you’ll need to see what their requirements are. Every loan company has a simple set of requirements you must meet. And while many of them are the same, you will find a few differences between them. The kinds of things they look for are: Whether you live in the U.S. How long you have been at your job How much you earn each month Whether you have an active checking account Whether you have direct deposit for your paycheck The number of NSFs (non-sufficient fund charges) on your recent bank statement In general, for all of them you must be at least 18 years old, be a resident of the U.S. (for U.S. companies), have a checking account, and have a steady job or receive other income like Social Security. You’ll find most of the differences are in how much you need to make each month, how long you need to have been at your current job, and how long you need to have had your checking account. Other things to look for are: Maximum loan amount (usually about $900-$1,000) Loan fee (usually about $20-$30 per $100 borrowed) Payment options You may find a loan company that charges less than others for the loan fee. But sometimes the companies that charge less have stricter requirements, so it’s harder to get a loan. Weigh all this carefully before choosing a payday loan company. Step 3: Gather all the information you need Before you sit down to fill out the application, make sure you have all the information they ask for. That will make filling out the form easier for you. You will generally be asked for the following: Personal Information: Name Date of birth Social security number Driver’s license number Home address, phone number, email address References Source of income (job, retirement benefits, other income) Job Information: Work phone Employer Date you were hired Supervisor’s name and phone number Pay cycle (weekly, bi-weekly, monthly) Checking Account Information: Date you opened the account Bank name Routing number Account number Deposits NSFs Let us explain a few of these: The bank routing number is usually the first group of numbers on the bottom of your check. The bank account number is the next group of numbers on the bottom of your check. The last group of numbers is the number of the check, which will match the number in the upper right hand corner. Deposits usually means the amount that has been deposited to your account in the last 30 days. NSFs are any non-sufficient fund charges you had on your last statement. As you can see, they’re not asking for a ton of information. Just enough to make sure that you are who you say you are and that you will be able to pay back the loan. Step 4: Fill out the online form completely and accurately This is the easy part. Just go through the form and put in all your information, which should only take a couple of minutes. The important thing is to be honest when you fill out the form! Many lenders use a company called TeleTrack to verify the information. If you lie about anything, they will know, and your application will be rejected. Also, only apply to one lender. If a lender sees you’ve applied to several companies (and they’ll know because of TeleTrack), they’ll think you’re too much of a risk and not give you a loan. But if you’ve found one good company, like the one we recommend, you should only need to apply to that one. Step 5: Submit the form Every payday loan company will be a little different in how long they take to approve your loan and how they contact you. But at this point, your work is done. You’ve selected a loan company, you’ve made sure you met their requirements, you gathered the information and filled out the form. Now it’s up to them to respond. Some may ask for another piece of information, or they might have you fax in a bank statement. But once they’re satisfied, they’ll wire the loan amount into your bank account. Congratulations! It’s a great feeling knowing you’ve been approved for a loan, and a relief to get a little extra cash in your bank account to tide you over until the next payday.
Article Source: http://www.articledestination.com
Don Sorensen is co-founder of LoanTruth.org a website focused on the truth about payday loans. He also develops genealogy related content for CensusRecords-Search.com
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