By: Alan Luong
All online payday loans sites require the consumer to fill out an application detailing personal information, occupational information, current banking and financial information, and references.
All online payday loans have minimal requirements applicants must meet in order to complete the application. These requirements usually follow these guidelines:
• Have a current job for at least 3 consecutive months.
• Take home a minimum of $800.00 monthly after taxes.
• Have a valid checking account open for at least 3 months.
Certain lenders also require current bank statements and paycheck stubs. Online payday loans lenders also take into account the number of NSF’s (non sufficient fund) charges an applicant has incurred in the past 30 days, and the number of current outstanding online payday loans.
An advantage of online payday loans to most consumers is that they are available to people with no credit, poor credit or bankruptcies. Unlike traditional lenders, online payday loans lenders do not request credit bureau reports from Experian, TRW, or Equifax. Instead, most larger online payday loans lenders and banks that partner with online payday loans lenders use consumer information services provided by Tele-Track. These services do not check credit history; they simply verify the applicant’s banking history information, including status of checking account, number of NSF’s and current outstanding online payday loans. When applying for online payday loans, it is very important to be truthful and correct in providing information and answering all questions, or the application may be declined.
IMPORTANT: If you are considering applying for online payday loans, only apply for one loan at a time. If an applicant applies for multiple online payday loans, each loan application will be reported, and may result in ALL applications being declined.
Once completed, the application is forwarded to the online payday loans lender for review. If the applicant meets the minimum requirements they will be notified (typically via email) that they are approved. The payday lender determines the amount of the payday loan, usually between $100 and $500. The amount of the approved payday loan depends on several criteria, usually monthly income, direct deposit, length at residence and job, availability of bank statements and paycheck stubs, number of outstanding NSF’s and other online payday loans. Repeat customers with an online payday loans lender are more likely to receive larger loan amounts than first time applicants.
Once approved the applicant will be asked to print and sign a signed copy of the online payday loans lender’s contract with the loan amount, loan fee and terms specified. Lenders may also require faxed copies of paycheck stubs, bank statements, and a personal check.
When the fax is received the lender will verify the information is correct and administrate the loan. Most online payday loans lenders will electronically deposit the loan amount in the applicant’s checking account overnight, depending on the time of day the loan application was received and approved. Online payday loans lenders typically do not process loans on weekends.
On the specified pay date, the online payday loans lender will electronically withdraw the loan amount plus specified fees. For instance, if the payday loan was for $300, and the loan fees were $20 for each $100 borrowed, then the amount electronically withdrawn would be $360.
Most online payday loans lenders offer clients the option of “rolling over” a loan, meaning that the loan is extended to the next payday. The client can contact a lender and request to extend the repayment date to the next payday. In most cases the fees charged will double, meaning a $300 payday loan “rolled over” would incur a total fee of $60, requiring a repayment of $420. Extending repayment dates is something that consumers should approach with caution as the resulting fees accumulate quickly.
