The COVID-19 outbreak has caused many uncertainties and negative ripples across the globe, from businesses shutting down to employees getting laid off or switched to new remote roles. In these difficult times, there may be a need for immediate financial support to get you through to your next paycheck.
If you’re in need of financial assistance before your next payday rolls around, a payday loan might be the option for you. If you’re not sure how a payday loan works or how it can benefit you, don’t worry—we’re going to answer some of the most common questions about payday loans so you can determine if this loan is right for you.
1. What is the difference between payday loans and other types of loans?
Payday loans are short-term loans based on the borrower’s future-dated paycheck. They’re called payday loans because they function as if you’re borrowing money from a future payday check, which you then use to pay off the loan amount.
The main differences between a payday loan and other loans is that it’s faster to get and pay off, there are fewer requirements to qualify, and it can be ideal for the person who needs immediate cash. The approval is less stringent than a long-term loan.
To get a payday loan, these are some of the requirements for you to apply:
- Have an open bank account in good standing
- Be at least 18 years old
- Have a government-issued identification
- Have a regular job or source of income
2. What is the difference between a direct payday lender and an indirect lender?
Indirect lenders act as intermediaries between you and the lender, which means extra steps, and a much slower loan process than a direct lender. They also typically require additional fees and can impact your privacy since they send your information to several different direct lenders to get you approved.
For emergency funds or a quick turnaround, a direct lender is a faster and more secure option. A direct payday lender is exactly what it sounds like; the borrower and lender work together directly with no third-parties becoming involved. This means your privacy is less impacted resulting in a safer loan, and you also don’t incur any extra fees beyond the loan agreement.
3. Where can I apply for a payday loan?
To apply for a loan, you don’t even need to leave the comfort of your home. At Cashback Loans, you can apply for, be approved for, and receive a payday loan 100% online, which makes receiving cash even easier and faster.
Online loans are made possible with payday loans because they require fewer documents, approvals, and verifications than long-term loans, so there is no need to come into a physical location to talk to a loan officer. This is especially beneficial right now as social distancing measures encourage people to stay home.
4. Will payday loans affect my credit score?
One misunderstanding with short-term loans such as payday loans is that getting one may negatively affect your credit score, even if you pay it back on time.
However, because payday loans are short-term, lenders do not need to run a credit check, which helps you avoid credit dings. By working to pay off loans on time and within the outlined terms, you can keep your credit score intact.
5. What’s the quickest I can get funds for a payday loan?
If you are needing immediate cash right now, the quickest route is to choose a direct funding option for your payday loan. Cashback Loans offers a direct funding option, so once you have been approved, you can get the funds deposited directly into your checking account within minutes. Instead of waiting a day or two to get funds, you’ll have cash-in-hand from your checking account in as little as fifteen minutes.
This is a rough time for so many of us. But Cashback Loans can help you make your way through these hard times by offering quick, easy online payday loans. Fill out an application now, and have cash-in-hand in as few as 15 minutes. Whether you use the money for an unexpected expense, or to be able to pay rent or purchase groceries, the money is there for you to use however you need.