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How Payday Loans Work

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How Do Payday Loans Work Online?

First, let's define what a payday loan online is. Payday loans online are cash loans that are usually paid back on the borrower’s next pay date. Some online payday loans can be paid back over slightly longer time frames. But, in most cases, the loans are paid back in 30 days or less. Usually, the loan funds are deposited directly into the borrower’s account and paid back on the due date with an electronic payment from the same checking account.

Most payday loans online are from $100 to $1,000, but these amounts vary considerably from state to state based on state law. The loan fees range from $10 to $30 for each $100 borrowed but, again, can vary based upon state law. Every state has different laws governing the maximum amount of an online payday loan, the length of the loan, and the options available to consumers. There are some states that do not allow any form of payday loans, e.g., N.Y.

The first step in getting a payday loan online is to complete an online application.

Easy Application

How Do Payday Loans Work Online

The application form is simple, short, and easy to complete. Most people can complete it in 2-3 minutes right from their smartphone. Of course, you can use a pad, PC, tablet, etc. to complete the form. You will need to provide some data about your employment and your banking account.

Instant Processing

Once you complete your application and hit the 'submit' button, your encrypted information is transmitted and reviewed by potential direct lenders (usually 100 or more direct payday lenders), and you receive your answer in 90 seconds or less. Where else can you get an answer about a loan so fast… nowhere.

Quick Funding

If you have been approved, your lender will contact you directly about 30 seconds later (so from filling in your online payday loan application to the lender calling you is about 5 minutes or less). Your lender will answer any questions you have, tell you the amount of the loan they are offering, explain your fees, and your terms and conditions. You can expect to see the cash in your checking account in one (1) business day, i.e., excluding weekends and holidays as banks are closed then.

Payday Loans and Credit Scores

With payday lenders, your credit score isn't really an issue. Lenders know that you probably have poor credit, and they are prepared for that. Online payday lenders do not check your credit score. Most online payday lenders look at factors outside of your credit history to determine if you can repay your loan. The most important factor is your employment and monthly earnings average for the past three (3) months. If you have a steady job with at least $1,000 a month as income, you are likely to get approved for a payday loan online.

Benefits of Payday Loans Online

Payday loans online are the last resort for many people who do not have the credit scores to obtain cash in any other way. And, they are fast funding when you have emergency needs. Yes, the fees are high but not nearly as high as bank NSF fees for 3-4 checks @ $35 per check. Also, any utility company will hit you with penalties, a new deposit, setup fees, etc. just to restart a service, and these fees can add up to $200 or more.

Up-front Payments

Never borrow from any lender that demands any kind of advance payment. All legitimate lenders charge fees, but those fees come out of your loan proceeds. "Advance payment" scams are notorious for asking you to pay money upfront and then keeping that payment. They try to appear like they are local businesses and often use the name of a legitimate local lender, even using a local phone number, but they are offshore thieves!

If you are in need of emergency cash, apply for an affordable payday loan online with CashOne today!


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