WHAT CAN I EXPECT FROM THE TYPICAL ONLINE PAYDAY LOAN PROCESS?
The world of online payday loans can be an intimidating and controversial one for consumers. With all of the negative hype and confusing misconceptions circulating, consumers often don’t know whether an online payday loan is the right financial alternative for them and their situation.
The truth is that an online payday loan might just be the answer you’re looking for! At the very least, the option of a payday loan is always something worth looking into, especially if you find yourself in need of immediate financial relief.
This article is intended to clear up some of the confusion and illustrate the typical payday loan process. Different companies will have different ways of conducting business.
In no way does this article represent the full and exact process for every payday loan company that you find online. It is only intended as a general guide for the process and what you can expect from a typical, respectable payday loan company.
Always fully research any company you plan to do business with before completing any transactions.
WHERE DO I GO?
First, you will need to access the payday loan website. Typically, there are two kinds of payday loan sites on the internet.
A Payday Loan Lead Site.
o Normally a customer will search for a payday loan site and come across a “Lead Site” thinking it is a payday loan company. “Lead sites” are hosted by companies whose main goal is to gather information from several potential customers, and then sell that information to companies that will further review it and potentially lend you the funds you are requesting. Lead sites are normally identified because they do not have a member log-in section on their homepage. Also, look for a disclaimer somewhere on the website which states that their main purpose is to generate name leads for financial loan companies.
A Genuine Payday Loan Company Website
You can usually recognize genuine online payday loan sites by searching for a member’s log-in area. These sites are direct lenders for customers who apply for a loan via the company’s website. These companies are responsible for processing the applications in-house and depositing the funds into customer accounts once the loan is approved.
Customers should always research any company they are planning to do business with. After identifying the company you would like to use you will likely need to fill out a loan application. Online payday loan companies will have their general pre-designated requirements in place that must be met to qualify for a loan. Examples of this may include the following:
Active Direct Deposit
An established checking and/or savings account that allows unlimited ACH deposits and withdrawals (Established for three months or more as a general rule)
A minimum monthly take-home pay amount (Generally around $1000)
The established employment history of 3 months or more
Applicant age of 18 years or older
Online payday loan companies tend to be very specific and forthright about all of the requirements in the loan application. Be sure to fully read and understand all of the terms before signing the agreement.
After you have fully and truthfully answered all of the questions on the application a determination will be made regarding the approval or denial of the loan. Different companies rely on different systems when researching applicants. Reasons for denial may include the following:
Active “write-offs” or bad payment history with other payday loan companies
No matching information on the application (i.e. – Social security number does not match the name given on application)
Lying on an application
Applicants, spouses of applicants, or dependants of applicants who are on current active duty with any branch of the military (Federal law prohibits these individuals from doing business with payday loan organizations)
- Excessive loan inquiries with multiple payday loan organizations
- Recent poor checking or savings account history
- An excessive amount of current payday loans still outstanding
- False reference or employment contact information
For more about payday loan or payday loan debt help you can visit online experts.