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If you are thinking of applying for online payday loans,
it is important to apply for only one such loan at a time.
When several loans are applied for at the same time, each
loan application is reported and may cause all such applications
to be rejected.
The completed application is sent onwards to the online payday
loans lender for appraisal. If all minimum requirements are
fulfilled, the applicant is then notified usually via e-mail
that his loan has been approved. The amount of loan to be
given is usually between $100 and $500 and is decided by the
payday loan lender. This amount is based on several factors
like monthly income, direct deposit, job duration, length
at residence, availability of bank statements and paycheck
stubs, number of outstanding NSF's and other online payday
loans. Customers who have a history of online payday loans
tend to receive larger loan amounts than the ones who might
have applied for the first time.
After the loan amount has been accepted, the applicant will
have to print out and sign a signed copy of the online payday
loans lender's contract. This contract will have details regarding
the loan amount, loan fee and specific terms. The applicant
may also be required to fax copies of paycheck stubs, bank
statements as well as a personal check. The lender, after
such receipt, will authenticate the information and then administer
the loan. The loan amount is then, overnight, electronically
deposited by the lender in the applicant's checking account
depending on the time of the day that the loan amount is received
and approved. However, these online payday loan lenders usually
do not process loans on weekends.
On the due date for payment, the lender will again, withdraw,
electronically the loan amount with the predetermined fees.
For example, if the loan amount is $200 and the fees are $10
for every $100, the amount withdrawn will be $220. Very often,
the lenders offer their customers the choice of 'rolling over'.
This means that loan can be extended till the next payday.
A customer in need will contact the lender and ask him to
forward the repayment date to the next payday. In these cases,
however, the fees usually double. Taking the above example,
the $200 payday loan rolled over would carry the cost of a
$20 fee for every $100 requiring a repayment of $240 totally.
Rolling over can be expensive and customers should use this
approach cautiously and only if in dire circumstances as the
fees increase rapidly.
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