subject: Making Your Application Count: Applying For A Cash Advance Loan [print this page] Many dread the word loan and creditMany dread the word loan and credit. They do not want to apply for a loan because of its long-term duration. Banks and credit agencies deduct a sizeable amount from a borrowers salary. Payment for bank loans and credit cards last for years. Those who are unable to pay credit cards give away a collateral payment. They are financially indebted to large finance companies and credit agencies.
Because of this, lending companies have developed a short-term lending scheme. This is referred to as payday lending. Payday lending companies provide payday loans and fast cash advances. Payday loans are payable for two weeks. Lending companies deduct the total amount of borrowed money in one salary. They claim loan payments on the next payday. This ensures easy, convenient, and fast payment of debts. Payday lending is one of the fastest-growing lending schemes in the United States.
Lending companies charge a higher interest rate for payday loans. Generally, lenders charge a 15% to 30% interest rate for a loan transaction. High interest rates compensate for the convenience of the lending service. Aside from the benefit of short-term payment, payday loans have a simplified application process. Borrowers can apply for loans through lending outlets and websites. Application through lending outlets is called personal application. On the other hand, application through lending websites is called online lending.
Do you want to ensure approval of your application for cash advance loan? Lenders ask for four basic requirements. These are age, bank account, regular employment, and contact details. Finance laws in the United States require a minimum age of 18 years old for credit applications. An 18-year old with unpaid debts is accountable by law. This condition makes lending fair for lenders.
A working bank account is necessary in payday lending. A bank account serves as a finance medium between lenders and borrowers. Lenders deposit cash advance loan in a borrowers bank account. Likewise, borrowers pay loans through their bank account. Lenders retrieve payment on the agreed payment date.
Regular employment is a basic requirement in payday lending. Lenders require three to nine months of employment in a company. This ensures that payments can be given in due time. Moreover, contact details enable lenders to confirm receipt of cash advance loan. Some companies get contact details of their borrowers family and friends. This serves as a character reference when a borrower is unable to pay debt.
