The life of a payday loan: the process from A to Z
By now, every American citizen has heard about payday loans. You know you take them online for a short period. But do you know all the details? When do you sign the contract? When does the money arrive in your bank account? We are here to help you with that! This is the life of a payday loan!
The first step - you apply online. We recommend applying through a matching service rather than direct lenders. In this case, you have only one form, but tens of lenders receive it. The process is rather quick. You fill in your data, bank account information, and the amount you want to borrow. At this point, you might also need to specify your source of income and a couple more things. Overall, the application process is no longer than 5 to 10 minutes.
After you click submit, the matching service usually gets back to you in a couple of minutes. They donít perform any credit checks; thatís why the process is faster than traditional loans. The matching service connects you to a direct lender that approves your request and contacts you later on.
Signing the contract
Soon after, the lender writes you an email or gives you a call. They present you with the loan contract. Carefully read all details and ask as many questions as you need. At this point, the lender is there to help you understand the document. Pay attention to repayment terms and the sum you are borrowing. When all is clear and the terms suit you, sign the contract digitally.
Receiving the money and Paying it Back
Depending on your lenderís cut-off times, you usually get the cash the next business day after approval. As soon as it arrives at your bank account, you are free to use it as you please. After several weeks, by the time mentioned in the contract, you should make sure you have enough money in your account to pay the lender back. Most of the time, they extract the sum automatically. Nonetheless, it is your responsibility to have all of it accessible to them. And thatís it! After the pay-off is over, your loan is officially closed!
Payday loans process that suits every client. However, we have explained above the general formula for a payday loan. Each matching service and lender is different and might play by their own rules. We suggest you ask them directly about their specifics and only apply with professional and trustworthy services!